I am not an expert on reverse mortgages. However, they are very strongly pushed by advertising primarily because of the high upfront fees and interest rates. And, yes, you can buy a $250k house with $150k and get a reverse mortgage. However, if you need to move out of the house due to health issues, the lender will require that the house be sold, and you could end up losing much or your money. I think it is a better option to buy the house with a conventional 80 percent loan, and use the remaining cash to make the monthly payments. That is, assuming you can qualify for a conventional loan. Another option is to rent. Just my opinion.
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