Every quarter for the last few years, shows a steady increase in the amount of retained equity in senior homeowners homes, and they are using it to buy and move into smaller properties and 55+ communities. Many of them are in their large homes they purchased years ago when they had children, but now are "empty nestors" and the maintenance and upkeep has become to expensive and a burden and they are ready for the next chapter of their lives.
But if they are on a fixed income, it might be difficult to be approved for a traditional loan, plus then they will have to make a mortgage payment for the rest of their lives. But a reverse mortgage does not have any required payments and no prepayment penalty, the borrower only needs to keep their property insured and pay property taxes.
Purchase money reverse loans are a great option to purchase a home, and "Seller" credits can be used to off set some of he 3rd. party fees. And here is another consideration. If the older homeowner wants to help their adult children children or grandchildren purchase their own home, they can provide them with "gift" money for the purchase.
And where would the gift money come from? From their portion of 12 T of senior retained equity by using a reverse loan on their current property.
