Section 4: Reverse Mortgage First-Time Homebuyers

Purchasing Your First Home

 NOTE: Maybe you are looking to do a reverse mortgage and your home is the first and only home you have ever bought. Although that does fit the criteria for a first time home buyer it is importatnt to remember that Reverse mortgages are not tradiational first time home buyer programs and is designed for those over the age of 62 and older. Although this section will talk about the benefits of being a first time home buyer please do not confuse this program if you are indeed a first time homebuyer. 

Purchasing a first home is an exciting milestone in any person's life. For some, the process may also seem very intimidating. Buying a home can be challenging for a first timer. After all, there are so many steps, tasks, and requirements, and you may be anxious about making an expensive mistake. But first-time homebuyers actually enjoy some special advantages created to encourage new entrants into the real estate market. Please don't hesitate to give us a call or start your quote online.

How Much Home Can I Afford?

Typically, the first question would-be homebuyers ask themselves is, "What can I afford?" There are many factors that determine what a reasonable mortgage payment should be for an individual, including annual income, existing debt payments, down payment (if any), as well as additional costs like homeowners’ insurance and housing association fees. Orbit Home loans provides a handy VA Loan Payment Calculator to help homebuyers find a monthly payment that's comfortable for them.

Reverse Mortgage Payment Calculator →
Contact an Orbit Home Loan Professional

What Type of Loan Should I Get?

There are many financing options available for homebuyers out there, each with their own unique advantages. For most borrowers, we at Orbit Home Loans highly recommend the working with one of our loan officers to find out what best fits your needs. Of course, if you are still researching then you can continue to explore our many loan options here on our website.

Advantages of a Reverse Mortgage:

1. Help Solve Financial Problems

It can help solve financial problems. Even if you don't have a mortgage payment, retirement can be expensive. Average health care expenses alone for a retired couple amount to $285,000, according to Fidelity Investments, and that's not including long-term care. Through a lump-sum payment or ongoing monthly payments, a reverse mortgage. can provide retired homeowners with some extra cash flow to help stay afloat financially. You can't afford a monthly payment. Another way to gain access to your home's equity is through a home equity loan or line of credit. If you need cash but can't afford a monthly payment, however, those may not be good options.

2. No More mortgage

A reverse mortgage won't require you to make monthly payments on the debt you've incurred. You will, however, still be required to pay your property taxes, your homeowners insurance premiums and any other ongoing expense the lender requires.

3. Down Payment

There is no down payment necessary for an reverse mortgage. With a regular reverse mortgage, the loan amount is based on the equity in the home. With a reverse purchase, there is no equity, as the home has not been purchased, but there must be equity to cover accrued interest.

4. Private Mortgage Insurance (PMI)

Do all reverse mortgage loans require mortgage insurance? No. The HECM reverse mortgage program has mortgage insurance premiums, but there are non-FHA programs available in the market for certain scenarios and those programs do not have mortgage insurance.

 5. Credit Report

There are no credit requirements for Reverse mortgages

6. Lifetime Benefit

Reverse mortgage loans get you into one of the best loans which you will be able to use and benefit from for the rest of your life. 

7. Prepayment Penalties

You will not have a prepayment penalty when you work Orbit Home Loans. This is not the case with all lenders so make sure to check. 

The first step toward securing your loan is getting pre-approved. This involves a prequalification process, where a loan officer assesses the homebuyer's financial situation and determines what they qualify for and is followed by the homebuyer submitting a completed loan application to the lender for approval. Orbit Home Loans offers two ways to begin this process: You may either call us directly or reach start the application below to get a complementary call. 
Contact an Orbit Home Loan Professional

Finding a Real Estate Agent

When using a Reverse Mortgage, it's important to find a real estate agent that not only knows the intricacies of the REVERSE MORTGAGE Benefit Program, but also understands the specific needs of borrower. Orbit Home Loans has put together a network of friendly real estate agents for just this purpose.

Learn More about Orbit Realty →

Helpful Resources

The Guide to Reverse Mortgage Homebuying

Browse our VA homebuyer education and resources page.

Reverse Mortgage Home Loan Mortgage Payment Calculator

This free VA Home Loan calculator gives you a snapshot of what your monthly payments could be with a VA Loan.

 Reverse Mortgage Glossary

Use our glossary to reference any unfamiliar terms or acronyms.

As a first-time homebuyer, you have many options when it comes to purchasing your home - including homes in high-cost areas.