You don’t have to make very much money at all to get a Reverse Purchase Mortgage.
I’ll quickly show you how the underwriter will calculate the income. It’s not based on debt to income ratio. It’s based on residual income.
Here’s the formula…
Borrower’s current income – $$$$.
– Housing Expenses (taxes, insurance, HOA, etc.)
– Sq. Footage of subject x .14 sq ft.
– Liabilities from Credit Report
– Sq. Footage of subject x .14 sq ft.
– Liabilities from Credit Report
= Residual Income
The underwriter will then check the residual income against a chart for your family size in your area. For instance, in Texas for a 2 person family if the residual income is $886 or more then you are fine.
You can easily make less than $30,000 a year and purchase a $250,000 or $300,000 house as long as you have the down payment.
…and, the best part – NO MONTHLY PAYMENTS, EVER!
If you want to look into a Reverse Purchase for you or someone you know, give me a call or shoot me an email!
That’s it for today!
Have a good day today! …and thanks for reading.
Brett
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