In the past, a reverse mortgage was used only to help cover expenses, make improvements or to eliminate monthly payments. But seniors can now use the equity in their current home to purchase a new one! As our series of articles on reverse mortgages continues, I'm finding this is one feature of which few are aware.

Not everyone qualifies for the Purchase transaction, but if you have been daydreaming of your dream home, contact a mortgage broker to see if you are able to use this loan to  purchase your dream home. And with an adequate down payment, that dream home can be purchased without you having to pay monthly payments at all!

Briefly, with the Purchase program, you just inform your mortgage broker that you want to purchase a new home with a reverse mortgage. He or she will calculate how much you qualify to receive for this new home, just as though you already own it. The calculations take into consideration your down payment, the appraised value of the property and your age.

This is a great opportunity for those wanting to enjoy that home they always dreamed of. Talk to your mortgage broker for further guidance. And happy moving!