Loan Programs

Website Explains Reverse Mortgage Purchase Program

By James Comtois

PLEASANT HILL, CA- Seniors Reverse Mortgage here has launched a website to promote the Department of Housing and Urban Development's Reverse Mortgage for Home Purchase Program. The site, http://www.reversemortgageforhomepurchase.com, contains a form on the home page where a potential home buyer aged 62 or over can send the information needed to determine how much money will be required for a down payment to purchase a home of a certain value.

Another option is to figure out the price of a home that the senior can purchase given a certain down payment. A matrix is included under "sample" to show approximately the amounts needed by age.

For instance, the chart shows that a 70 year old wishing to purchase a $300,000 home would need approximately $123,000 (41%) down. The remainder, $177,000, plus closing costs would accrue interest over time. However, no payment would ever be needed from the borrower as long as he or she remains in the home.

One of the tabs has frequently asked questions section with corresponding answers. Another page includes the HUD regulation authorizing the program as written by Brian Montgomery, who was the Federal Housing Commissioner in the Bush administration.

Ken Keranen, a branch manager for Seniors Reverse, launched the site that explains to seniors, Realtors, financial planners and others exactly how this mortgage product works. A second URL for the site is http://www.hecm4homepurchase.com.