reverse purchase mortgage

Reverse Purchase Mortgage – Ocean Hills Homes

November 2, 2010 By Gary Harmon

If you are ready to sell your current home and purchase a more suitable retirement home, a reverse mortgage may be able to help you. The reverse purchase mortgage program is available for San Diego North County buyers who are at least 62 or older. With a reverse purchase mortgage you make no mortgage payments for the rest of your life. There are no income or credit requirements with a reverse mortgage. Let’s take a look at an example of how it works.

Example of Purchase Reverse Mortgage

Buyers plan to move to San Diego North County to retire and downsize. They now want a single level home with lots of amenities and Ocean Hills is the perfect place. They want to use the sales proceeds from the home they just sold and want to buy a home and not have any more mortgage payments for the rest of their lives.

This will be tough to do as I estimate the proceeds from their sale to only be around $200,000. I contact Ken Keranen of HomeServices Lending to see what type of program is available.

My clients have found a home in Ocean Hills Country Club they really like for $450,000 (3 yrs ago $600k). We all sit down and run the numbers on this home using a Reverse Mortgage Purchase.   Here is what we came up with:
Purchase Price                        $450,000
Reverse Mortgage Funds        $262,800
Cash Required to Close           $187,200

My clients takes $187,200 of the $200,000 from the sale of their old home combined with the $262,000 reverse mortgage proceeds from Wells Fargo to purchase the new home for $450,000 and will never have any monthly mortgage payments as long as they live in the home!

Reverse Mortgage Example for a $309,000 Purchase, Different Age Buyers

For more information about purchase reverse mortgages and how you can use them to buy your Ocean Hills Country Club retirement home, contact Gary Harmon, your Ocean Hills Realtor. Other reverse mortgage articles available on this blog: Purchase Reverse Mortgage Examples – Oceanside Homes for Sale, Reverse Mortgages – Frequently Ask Questions, and Reverse mortgages for San Diego home purchases.

Purchase Reverse Mortgage Examples – Oceanside Homes for Sale

October 6, 2010 By Gary Harmon

Two examples of how a purchase reverse mortgage (HECM) can work for you when buying Oceanside homes for sale.

Purchase reverse mortgage(HEMC) example 1 – Oceanside clients ages 65 & 64 who are just retiring want to downsize to a Ocean Hills Country Club single story home with all the amenities of their existing home and use the proceeds from the sale to pay cash. Their goal is to have no future payments on their Ocean Hills Country Club home.

I estimate that the net proceeds from the sale of their current San Diego North County home to only be around $200,000.

I suggested that my Ocean Hills buyer take a look at the Reverse Mortgage Purchase offered by HomeServices Lending, an affiliate of Wells Fargo bank.

The clients really want a Ocean Hills home that is a great deal at $450k (3 yrs ago $600k). We all sit down and run the numbers on this Ocean Hills home using a Reverse Mortgage Purchase. Here is what we came up with:

Purchase Price $450,000
Reverse Mortgage Funds $262,800

Cash Required to Close $187,200

The clients takes $187,200 of the $200,000 from the sale of their old home combined with the
$262,000 reverse mortgage proceeds from their HomeServices Lending loan through Wells Fargo to purchase the new home for $450,000. And they will be achieving their goal of never having any monthly mortgage payments as long as they live in the home!

To sum up, many Ocean Hills Country Club home buyers pay cash. In this case that would have been $450,000. In our case they invested only $187,200 of their money and have no payments for life. Several years ago, the selling price of this home would have been over $600,000 and no reverse purchase mortages were available. Good deals are available now.

Purchase reverse mortgage (HEMC) example 2 – Marge and John, both 74, want to buy a one story manufactured home in Emereal Lake Village in Oceanside, CA. They are currently selling their Carlsbad, CA two story home. They feel a single story home will be better suited health wise for the rest of their life.

Marge and John look at several homes in Emerald Lake Village for around $300,000. All of Emerald Lake Village is one story detached homes with reasonable homeowners fees. Marge and John meet with a reverse purchase mortgage specialist at Home Services Lending.

They make an offer and get it accepted at $300,000.

Purchase price of $300,000, reverse mortgage proceeds of $177,213, leaves an investment of $122,787 needed. Marge and John have no more payments for live.

To find out more about purchase reverse mortgages read my other blogs:

Reverse mortgages for San Diego home purchases

Reverse Mortgages – Frequently Ask Questions

Reverse Mortgage – Purchase Ocean Hills

Purchase Your San Diego Home with a Reverse Mortgage.

Also, contact Gary Harmon, and I will put you in touch with my reverse purchase mortgage specialist at HomeServices Lending.

* Ever effort to make these examples correct have been take, but rates constantly change. The amount that you have to put down on a reverse purchase mortgage changes with your age. See my table for purchase reverse mortgage for a general idea.