Purchasing Multi Unit Property With HECM For Purchase?

Realty Times journalist Kenneth Harney discusses how one couple decided to purchase an owner occupied multi-unit property using the new HECM for purchase program.

Harney describes a married couple in their early seventies who is planning to downsize from their long-time home in Reno, which they sold late last year for about $850,000.  Now, they’re looking at a $500,000 tri-plex, with the idea of living in one unit, and renting out the other two for about $1,300 a month each.

Harry Gordon, a reverse mortgage specialist with Lake Tahoe Mortgage in Reno, Nevada told Realty Times that the property would have sold for about $750,000 at the peak of the boom, so the buyers are getting an excellent price for the property.

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Since the couple would use the HECM for purchase program to buy the property, they wouldn’t have to make any monthly payments and could generate $2,600 a month in rent that Gordon says is realistic and attainable under current market conditions.

Investor Report: FHA Reverse Purchasing

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