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You Can Buy a Home with a Reverse Mortgage. Here’s How to Do It

Many older homeowners may not realize they may be able to purchase a new home using a reverse mortgage*.

Homeowners 62 and older may be able to qualify for the loans, provided they are buying a primary residence. This means they must live in the home for at least six months and a day.

Reverse mortgages allow homeowners to tap into their home equity. They don’t need to be repaid until the homeowner moves out of the property, sells the residence, or passes away.

“There are a lot of ways people can use their home equity to provide them with opportunities to have the retirement that they want,” said Lorraine Geraci, Reverse Talent and Development Manager at New American Funding.

^{* Borrower is responsible for paying taxes, insurance, and other property expenses. Borrower must occupy home as their principal residence. A new loan will require a new credit check, appraisal, title search, initial mortgage insurance premium, closing costs and fees. Consult your tax advisor.}