The New Real Estate Boom(ers): Purchasing with Reverse Mortgages

In October of 2008, HUD rolled out their reverse mortgage product and in March of 2009, they perfected it. With rates expected to rise and the tax credit setto expire, many real estate professionals are looking for new and under-served markets to reach out to. Since HUD has perfected their reverse mortgage, the Home Equity Conversion Mortgage (HECM) and the market for US residents 62 or older is expected to nearly double between now and 2050, perhaps now is their time. A reverse mortgage is a loan where home equity is converted into a lump sum payment or series of payments to …