One of our LO’s has a borrowers that own a home (primary). They have an existing conventional loan. They have quit claimed off of the home and gave it to their son and daughter. They are still on the loan. They would like to purchase a new primary residence with a reverse mortgage. He is 65 and she is 57. They will be moving to this new home and making it their primary. Actually they are under contract with a closing date of Nov 26 or 28. Can a couple purchase a home with a reverse mortgage if one of the spouses is under 62? Is the past primary home, which is soon to be an investment property, an issue?
We will have to take a look at the whole file and how the two property scenario comes together. They will have to qualify for that payment still and whatever new charges will occur on the HECM purchase. It will need to make sense with a solid LOE as to why they are vacating. The whole file will tell us more, i.e. size of property vacating vs size of new one. Distance of the two properties etc. So I cannot give you a firm answer on that other than to make sure you document it well. The wife will need to be an NBS due to her age as all borrowers must be 62 at time of closing.