One of the more popular Arizona Reverse Mortgage options lately is the FHA HECM for Purchase program that allows seniors to buy a home with a reverse mortgage. Many seniors are taking advantage of the current real estate market and moving into a house without having to worry about ever making a mortgage payment.
Arizona Reverse Mortgage Purchase Program General Guidelines:
- The principle limit will be calculated based off of the age of the youngest borrower, the current interest rates, and the lowest of the appraised value, sales price or lending limit.
- FHA flipping guidelines apply. The resale of a property may not occur 90 or fewer days from the last sale. Re-sales that occur between 91 and 180 days where the new sales price exceeds 100% of the previous sales price, additional documentation validating the property’s value will be required.
- Proof of funds to close. The following are not acceptable: gift funds, grants, seller contributions or secondary financing. All Retirement funds must be liquid.
- Any repairs that are required by FHA guideline must be performed before closing. Seller is responsible for ALL repair costs.
- The borrower must occupy property within 60 days of closing.
Arizona Reverse Mortgage Purchase Program Documentation Requirements (not limited to):
- Fully Executed Sales Contract
- Amendatory Clause (can be an addendum to sales contract and must be dated on or before the contract date)
- Property Condition Disclosure (completed by seller)
- Application Documents
Other Requirements:
- Home Inspection (may be paid by either buyer or seller)
- Home Warranty (may be paid by either buyer or seller)
- Survey (paid for by buyer)
- Termite inspection on HUD approved form NPMA-33 (paid for by seller)
Is it possible to buy a home with a FHA insured Arizona Reverse Mortgage? It is now – and these are the general requirements. We are Arizona Reverse Mortgage experts and happy to help answer any other questions you may have about the program.
