Borrower has 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 new primary residence. 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?
It is possible however until the whole file can be reviewed by the Underwriter, and how the two-property scenarios come together, a firm answer cannot be given. However, the HECM borrower will have to qualify for the payment still and whatever new charges will occur on the HECM purchase. The transaction will need to make sense with a solid LOE as to why they are vacating their current primary residence. The Underwriter must review the whole file and determine if it meets HECM program guidelines, i.e. size of property vacating vs size of new one, distance of the two properties etc. Note: The wife will need to be an NBS due to her age as all borrowers must be 62 at time of closing for the HECM program.