Using a Reverse Mortgage to Buy a Retirement Home

I got a call from a prospective client from Alabama. He had been referred by her cousin that lives in a new over 55 community. She shared with me that she was planning on selling her existing home, but at the age 75 didn’t really want a mortgage. The value of her existing home was quite a bit lower than the home she wanted to buy, which was right next to her cousin.

She let me know that this cousin was her nearest relative, as her husband had passed three years earlier and that she had no children. After more discussion, I suggested a reverse mortgage to purchase this home. She was not aware that she could purchase a home using a reverse mortgage.

I am not always a fan of this mortgage product, as there are folks doing them that just shouldn’t, but in this situation is was the perfect solution. She would end up with no mortgage payments and even receive a monthly check as part of the same transaction.

I could hear her excitement, as she was ready to get her home on the market and start the negotiations to purchase the home that she wanted.

I got a call from her cousin this morning, she just wanted to say thank you for making Judy one happy lady. It just doesn’t get any better than that.

image courtesy of naypong/freedigitalphotos.net