(678) 530-0511
The HUD Reverse Purchase Program
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The HUD Reverse Purchase Program
On January 1, 2009 seniors in the state of Georgia aged 62 and older became eligible to purchase a new principle residence using loan proceeds from a HUD Reverse Mortgage. The purchase program was designed to allow seniors to purchase a new principle residence in Georgia and throughout the country with a single financial transaction by eliminating the need for a second closing. The purchase program enables senior homeowners to enjoy several options: 1. Downsize to homes that are more suitable to meet your physical needs. 2. More easily afford to relocate to other geographical areas to be near family members or friends. 3. Up-scale to a home or senior community to have amenities never enjoyed before. 4. Get into a new residence for about 47% of the purchase price and preserve your hard-earned assets for financial growth or to live off of. Generally, this is a common scenario for a Reverse Purchase. A senior couple or individual sells the home where they have lived and raised their family for many years and either owns the home outright or now has a lot of equity in it. After the closing, the funds from the sale are placed in their bank account. They get temporary housing through a short lease or rent a place month to month while they are looking for their new permanent residence. Because they have temporary housing, they are not hurried or forced to buy quickly and can take the time necessary to find the perfect Georgia home or senior community that will meet all their needs. Here are some things that are helpful to know when considering a purchase with a Reverse Mortgage: • The required HUD counseling certificate must either have your old address if it is still for sale at the time of counseling or the “in-between” address on the certificate. It should not have the new home address that you will be purchasing. • If the home is new construction, all construction must be completed and have a Certificate of Occupancy or its equivalent. • Borrowers must occupy the property within 60 days from the date of closing. • All outstanding or unpaid obligations in connection with the Reverse Purchase transaction must be satisfied at closing. • At closing, borrowers must provide a monetary investment which will be applied to satisfy the difference between the net funds from the reverse mortgage and the final sales price or appraised value, whichever is less. • The source of all funds needed to complete the transaction must be verified prior to closing. A verification of deposit, along with the 2 most recent bank statements may be used. If applicable, a copy of the settlement statement from the sale of the previous home is required. • Borrowers may not obtain a bridge loan or other gap financing to meet the monetary investment requirement or payment of closing costs needed to complete the purchase transaction. • The 3 day right of rescission period is not applicable for Reverse Purchase transactions. All initial advances may be distributed on the same day as the closing. For more information call: (678) 530-0511 GA License #29757 Reverse Mortgage...Forward Thinking |
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