Reasons to consider a Reverse for Purchase Mortgage
As people transition into their senior years, financial goals and home dynamics tend to shift. For many older Americans, purchasing a new home that better fits their lifestyle, without taking on a traditional monthly mortgage payment, is a top priority. Maybe they’re looking to downsize or maybe they need a single-level home.
Reverse Mortgage benefits:
1. Buy a home and secure a Reverse Mortgage in one transaction
A Reverse for Purchase Mortgage allows you to buy a new home and obtain a Reverse Mortgage in a single transaction. This streamlines the homebuying process and eliminates the need to secure traditional financing first and then refinance into a Reverse Mortgage later. It's a convenient option that saves time, energy and often, money.*
2. Afford more home with the same cash investment
Because you're only responsible for a one-time down payment, you may find that you can purchase a more updated or spacious home than you initially thought possible. This allows you to consider homes closer to family or with amenities that support aging in place.
3. Closing costs are rolled into the loan
With a Reverse for Purchase Mortgage, most closing costs are included in the loan itself, which helps preserve your cash flow. You won't need to worry about bringing extra funds to the table at closing, which reduces out-of-pocket expenses and keeps your financial plan intact.
4. Create financial flexibility
Eliminating monthly mortgage payments (while remaining responsible for property taxes, homeowners insurance and maintenance) can free up a significant portion of your monthly income. These funds can be used to pay down other debts, invest in travel, healthcare, hobbies or simply to build an emergency fund that brings peace of mind.
5. Align your home with your desired lifestyle
Whether you want to downsize, relocate closer to grandchildren or move to a one-level home that’s more livable, a Reverse for Purchase Mortgage empowers you to choose a home that supports your next phase of life without the financial strain of traditional financing.
6. Enjoy FHA-insured protection**
These loans are insured by the Federal Housing Administration (FHA), which offers several consumer protections. FHA insurance guarantees that you’ll never owe more than the home’s value when it’s sold and ensures that funds will continue to be available even if the lender faces financial difficulties.
7. Keep the title in your name
One of the most common misconceptions about Reverse Mortgages is that the bank owns your home. With a Reverse for Purchase Mortgage, you retain full ownership and the title stays in your name, provided you continue to meet loan obligations such as living in the home, paying taxes and insurance – and maintaining the property.***
8. Access to a dedicated, knowledgeable team
Reverse Mortgages can be complex, but the process doesn’t have to be overwhelming. When you work with a Guaranteed Rate Affinity Reverse Mortgage Specialist, you gain access to a team of professionals who will guide you every step of the way, from assessing eligibility and explaining costs to helping with paperwork and closing.
9. Take control of your retirement and live the life you deserve
A Reverse for Purchase Mortgage is not just a financial tool, it’s a lifestyle enabler. It gives you the freedom to design your retirement around your goals, not around fixed monthly mortgage payments. Whether that means traveling more, helping your family financially or simply enjoying your golden years stress-free, this option can support the retirement you’ve worked hard to achieve.
Is a Reverse for Purchase Mortgage right for you?
A Reverse for Purchase Mortgage isn't for everyone, but for the right homeowner it can be a smart and empowering choice. If you’re 62 or older, are considering a home that better fits a retired lifestyle and want to maintain financial independence, it's worth exploring.
* Savings, if any, vary based on the consumer’s credit profile, interest rate availability, and other factors. Contact Guaranteed Rate Affinity for current rates. Restrictions apply.
**Guaranteed Rate Affinity is an FHA-Approved Lending Institution.
***As with any mortgage, you must meet your loan obligations, keeping current with property taxes, insurance and keeping your home in good condition.
This is not a commitment to lend. Home Equity Conversion Mortgages (HECMs) are eligible for borrowers 62 and older. Borrower must pay property taxes, Homeowner’s insurance, HOA dues (as applicable), and maintain the home and using it as primary residence or the loan will need to be repaid. Otherwise, the loan must be repaid when the borrowers leave the home more than 12 consecutive months, transfer their property's title to another person, the last borrower passes away or sells the home. Prices, guidelines and minimum requirements are subject to change without notice. Subject to review of credit and/or collateral; not all applicants will qualify for financing. It is important to make an informed decision when selecting and using a loan product; make sure to compare loan types when making a financing decision. This material has not been reviewed, approved or issued by HUD, FHA or any government agency. Guaranteed Rate Affinity is not affiliated with or acting on behalf of or at the direction of HUD, FHA or any other government agency. To find a Reverse Mortgage counselor near you, search the HECM Counselor Roster at https://entp.hud.gov/idapp/html/hecm_agency_look.cfm or call (800) 569-4287.
All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. Guaranteed Rate Affinity does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error-free. Some information in the publication may have been provided by third parties and has not necessarily been verified by Guaranteed Rate Affinity. Guaranteed Rate Affinity its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action.