Tips For Buying A Home In Redmond Oregon With A Reverse Mortgage

Tips for a Successful Reverse Mortgage Purchase Transaction

For your reverse mortgage purchase transaction in Redmond Oregon to go smoothly, be sure you understand the guidelines before you start looking for a home. If you are the buyer and reverse mortgage borrower or Realtor, study these important tips to assure closing on time and without headaches.

Step one: Get Reverse Mortgage Counseling prior to shopping for a home!
Once your offer is accepted, we move quickly to start the loan process to meet the time frame of your purchase agreement, typically 30 to 45 days. But the process cannot start until you present us with a reverse mortgage counseling certificate.

Finding the home you love AND that qualifies for a reverse mortgage.

Make sure the home has not been sold within the last 6 months prior to your purchase.
The seller is not a family member or related party. It must be an Arm’s length transaction.
If it is new construction, the Certificate of Occupancy has been issued.
Is the house in good condition? The seller must be willing to perform repairs prior to closing so watch out for fixer uppers or sellers not willing to repair.
If you are interested in purchasing a condo, make sure the project is on the approved condo list. If it is not listed, ask us how we can help get it approved.

Down Payment Requirements & Sourcing Funds
Down Payment requirements are higher than traditional mortgages because there must be equity available for interest to accrue. All down payment funds must be satisfactorily sourced. We will request all pages of the bank statements where funds are coming from over the past 3 month period. If funds
are from the sale of property we will require the HUD1 Settlement or Closing statement.
The seller cannot credit any money, pay the closing costs of the buyers or provide anything that can be considered seller concessions.

Ineligible funding sources include; credit card advances, bridge loans, personal loans, subordinate
liens, new loans against other REO, builder incentives, loans against borrower assets, loan discount points, interest rate buy downs, closing costs assistance and gifts or personal property.
Family members may provide funds towards the down payment as a gift. A letter must be provided from the donor that the funds are in fact a gift that does not have to be repaid.

Purchase Contract: Do it right from the start
Additional documents must be part of the purchase contract including Real Estate Certification and Amendatory Clause. Depending on the property location there may be additional documents required.
In most cases, the buyer must pay all of the closing costs so write the offer accordingly. It may mean a lower offer price to compensate for the fees the seller typically pays.
And use an escrow company that specializes in reverse mortgages, you’ll be glad you did!

I’m here to help you every step of the way and along with an attentive agent, we’ll get your reverse mortgage purchase closed quickly and get you in your new home with no mortgage payments!
If you are using the reverse mortgage for home purchase in Redmond Oregon, I can help… just call, let’s talk!