A Heartwarming Home Purchase

In a charming town in Eastern Idaho nestled near the shimmering riverbank of the Snake River, there lived a vibrant and adventurous senior named Evelyn. After years of creating beautiful memories in her cozy family home, Evelyn felt a longing to be closer to her grandkids and medical resources in the larger metropolitan of Boise, ID.

However, Evelyn faced a significant obstacle. With the recent increase in the housing market in Boise and its surrounding area she felt priced out and unable to make this move happen. Her intent was to sell her current house to purchase a new home, but she didn't have enough money to cover a cash purchase. She also felt that she didn’t make enough money on her fixed income to live comfortably while making mortgage payments. That's when she stumbled upon an intriguing financial solution, a home equity loan, known as a reverse mortgage.

Evelyn's curiosity piqued, and she delved into the world of reverse mortgages. She met with a friendly and knowledgeable loan officer who patiently explained the intricacies of the FHA backed reverse mortgage known as the Home Equity Conversion Mortgage or HECM.

The expert loan officer shared that a reverse mortgage is a special type of loan available to seniors aged 62 or older. It allows them to convert a portion of their home equity into cash, providing financial flexibility without the need to make monthly mortgage payments back on the loan. The loan is repaid when the homeowner moves out of the home, sells it, or passes away.

Evelyn's eyes sparkled with excitement as she realized that a reverse mortgage could be the solution she needed to buy a new home. With David's guidance, she began the process of selling her current house, finding a new home where she could make a 50-60% down payment on, and obtaining a reverse mortgage to cover the remaining balance.

The way a reverse mortgage works is; there needs to be significant equity in the house (in this case it would be established immediately with a large down payment), the reverse mortgage is a loan on a portion of this equity, the amount borrowed is first used to pay for the remaining balance on the original home mortgage, if there is any remaining money after the home mortgage is paid off – the homeowner is entitled to use it however and whenever they want.

Evelyn knew, that if she found a house in the right price range where she was able to put down about 60% of the home’s value, she could cover the rest of the asking price using a reverse mortgage. She would then be able to own and live in the home free and clear without having to make monthly mortgage payments on it, till she decides to move out or passes away.

Excitedly, Evelyn set out to sell her current house. With the sale proceeds, she planned to cover a large portion of the down payment on her new home and use the remaining funds to enhance her financial security.

Evelyn's house attracted interest swiftly, and before she knew it, she received an excellent offer. The sale closed smoothly, and the funds from the sale covered 60% of the down payment on her dream home. With the reverse mortgage in place, she continued to hold ownership of her new abode, free from the burden of monthly mortgage payments.

In her new home, Evelyn thrived. She reveled in the fresh opportunities that surrounded her, discovering new hobbies and forming connections with her welcoming neighbors. The reverse mortgage provided her with the financial stability to enjoy her newfound independence and the peace of mind that came with knowing she could live comfortably in her dream home without being forced to leave.

Years passed, and Evelyn cherished each moment spent in her beloved abode. She understood that when the time came to leave the property, whether due to a change in lifestyle or passing away, the reverse mortgage would need to be repaid. However, she took solace in the fact that the repayment would never exceed the value of the home, thanks to the protections provided by the Home Equity Conversion Mortgage program.

Evelyn's journey stood as a testament to the benefits of reverse mortgages for seniors seeking to sell their homes and purchase new ones. With the right information and support, she transformed her aspirations into reality, creating a haven of joy and contentment in her new home.

Are you looking for further information on reverse mortgages? You can find more information on our Services Page. Or you can speak with Stephen or Trevor directly through our Contact Us form.