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My wife and I want to buy my mother's house, since she can no longer afford it and still let her liv

  • May 15 2013 - Richmond
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Answers (7)

A mentioned below a reverse mortgage may be a good fit for her and your family.  I would recommend consulting with an expert to assess our options. Feel free to reach out to me. 

In addition you can definitely purchase your mother's house, if that is the route you choose, assuming you can qualify based on your income, assets and credit history. 
  • July 23
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Profile picture for davidhawke
My mother just did a reverse mortgage purchase.  She is 82, and It enabled her to buy a property that she NEVER would have been able to afford with a regular mortgage.  At 82, they only required her to put 26% down, and loaned her the rest of the money to acquire the home.  The best part is that she will have no payment on it for the rest of her life.  

In the case of your mother, who already owns the home... not only will it stop her house payment, but they will also give her either an up-front lump sum of cash or a monthly payment, depending upon the equity she has in the house.

HOWEVER, the downside to them, is that they eat up your remaining equity really fast (4-6 years from what I can see).  So, if you are depending upon inheriting her equity in the house.. a reverse mortgage will kill that plan in a short amount of time.  Even though these programs are government backed, make no mistake they are in place to earn profit for the Federal Housing Authority. 

So, buying her out and letting her live with you will protect her equity much better than a reverse mortgage will.  Whatever you do, explore a lot of options and seek UNBIASED advice.  The reverse mortgage loan officer is definitely biased and will paint a rosy picture, possibly glossing over the downside of the program.
  • May 17 2013
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I agree with the other replies, your mother should consider a Reverse Mortgage.  A Reverse Mortgage is for seniors that are 62 and older.  Most homeowners don't fully understand a Reverse Mortgage and shy away from it  because of the misunderstanding.

A Reverse Mortgage will allow your mother to stay in her home without making any monthly mortgage payments, she will be required to pay the property taxes and homeowners insurance on the property.  The best part about the Reverse Mortgage, it does not come due until her demise or until she discontinues living in the house for more than six months.  At that time  the lenders will give the heirs an opportunity to sale or purchase the property.

Since you mother is on a limited income this might be an option for her. To qualify for this loan it is based solely on age and equity in the property.  The older the homeowner, the more she will qualify for.
 
Seek out a mortgage company that specializes in the FHA Reverse Mortgage.

  • May 17 2013
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Definitely look into a reverse mortgage. Find a local lender for this.
  • May 15 2013
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You should check into Reverse Mortgage Loans for her.
  • May 15 2013
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Profile picture for Surfrunner
I forgot to say she is 80 years old and has minimal income, so This option may be out. Where do I find out about these loans??
  • May 15 2013
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There are defitinely ways you can do this, you could actually look to do a refinance under a Family Opportunity program, where your mother could still stay on the loan and title of the home.
  • May 15 2013
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