MHProNews has learned from the-review that seniors can now use the reverse mortgage program to purchase a home, allowing them to, say, trade their two story home for a one level with easier access to cabinetry, wider doorways for wheelchairs, and grab bars installed in the bathroom.

Using the same advantages of a traditional reverse mortgage, and only available through an FHA-approved lender, the home equity conversion mortgage (HECM) is the only reverse mortgage approved through the U. S. Department of Housing and Urban Development (HUD).

There are no income or credit requirements, no monthly payments as long as they occupy the house as their primary residence, maintain the home and pay applicable property taxes. The list of eligible homes that may be purchased includes manufactured homes (MH) built after June 15, 1976, as well as single-family homes, HUD-approved condominiums and two-to-four unit properties, but excludes homes on leased land, which would disallow MH in a manufactured home community.

The home must be occupied by the borrowers within 60 days of closing. In cases of a newly-built home, construction must be completed and a certificate of occupancy issued before the loan application.

As Joe Lorenz, president of the Stark County Association of Realtors says, “With an aging population that’s living longer and likely to outlive savings or outspend Social Security and other retirement funds, reverse mortgages to purchase can be a legitimate option for seniors.” ##

(Photo credit: archerland2005/flickr–manufactured home)

Article submitted by Matthew J. Silver to Daily Business News-MHProNews.