December 11th, 2009

Can you use a reverse mortgage for a purchase of a home and get down payment assistance?

Tyrone P asked:


This is the right question just answer without implying people asking do not understand. That is why there is a question.

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This entry was posted on Friday, December 11th, 2009 at 5:03 am and is filed under Reverse Mortgages. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

7 Responses to “Can you use a reverse mortgage for a purchase of a home and get down payment assistance?”

  1. me Says:
    December 12th, 2009 at 11:43 am

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    NO. In fact, you cannot use a reverse mortage to purchase a home at all.

  2. Don E Says:
    December 12th, 2009 at 10:48 pm

    Create a video blog…instantly.

    Not a good move.

  3. John Says:
    December 15th, 2009 at 1:16 pm

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    No… with a Reverse Mortgage you’re getting monthly payments that are coming out of the equity in your house. If you were to just get a 2nd mortgage or home equity loan, you could use those proceeds for a down payment on another home but you may not qualify for a mortgage when you’ve already got one home with 2 mortgages on it; depending on your debt/income ratio, but if all you have is a reverse mortgage, you’re not going to be able to purchase another property using that. You may be able to use those payments to make the payments on the new property but you’ll have to first secure the down payment and qualify for a mortgage on the new property.

  4. shiprepairwoman Says:
    December 18th, 2009 at 8:07 pm

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    No, I see why you think nobody will understand. A reverse mortgage is only for the elderly who already own a home so why they would be wanting to pay a down payment is the main confusion.

  5. †Ask Me Anything† Says:
    December 20th, 2009 at 4:51 pm

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    Short answer: no

  6. Donald Says:
    December 20th, 2009 at 7:45 pm

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    don’t know if this solves your problem but what I suggest doing in hard financialsituations is to obtain a recent copy of your credit score&report. i got my credit score&report at

  7. lender2you Says:
    December 22nd, 2009 at 9:25 pm

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    The answer is both “No” and “Yes”. Yes you can purchase a home with a Reverse Mortgage and many people do when they down size and are putting money down. No you can not get any down payment assistance because you need the equity to be able to draw the money out over time.