Buying a Home Using a Reverse Mortgage

Millie called about 6 months ago, just prior to moving to Florida. She told me that she was planning on purchasing a nice home, but didn’t have enough money to pay cash, but had a sizeable down payment. She shared that her accountant recommended I be called to discuss some options.

Millie was in her mid 60’s and her only means of income was her social security and a small pension, so a mortgage payment would have been a challenge. My suggestion was a reverse mortgage as a solution to her situation.

She eventually put a deposit on a $220,000 home. The transaction ended up with her ability to qualify for nearly $120,000 mortgage and the balance came from savings. She can now have her home with no mortgage payments. Her responsibility was her taxes, insurance and maintenance of her home. For Millie this was the perfect solution.