You Can ONLY Use a Reverse Mortgage For a Single Family Home

FACT: The Reverse Mortgage loan can be used for a Single Family home, a Condo, a Manufactured/Mobile Home, or a Multi-Plex (1-4) unit!

Story: I have a client who divorced after 40 years of marriage, and at age 65, needed to buy a home. Instead of using all her divorce settlement cash to pay “all cash” for her new home, she investigated the Reverse Mortgage strategy. She had several goals to accomplish: she wanted an income-producing property and wanted to travel outside of the US for half the year.

Solution: We used the Reverse Mortgage loan to buy her a 4-plex unit. She lives in the largest unit and rents out the other 3. She has a property manager who takes care of the rentals, so she can travel.

The Reverse Mortgage loan terms require that she lives in the home as her primary residence, pays the property taxes and insurance, and maintains the property. She has no mandatory “Principal/Interest” mortgage payment, and she uses the rental income to fund the “Line of Credit” she has in her Reverse Mortgage loan.

A true Win, Win!

Disclaimer: The information provided is based upon education, solid knowledge, experience, and research; however, it should not be considered professional legal advice. Consult a legal professional with regard to your specific situation.