By Phil Stevenson, CRMP, "Mortgage Nerd" in Miami, Florida and Texas
(PS Mortgage Lending 305-791-4874 or 888-845-6630)
Reverse Purchase when using funds from the sale of another property: John and Sally are selling their current home for 400k. We will say that the 400k is their net proceeds after all costs of selling. Normally they would use 200k of that 400k to buy the new house so that they can retire without a mortgage payment, but then they only have 200k remaining for savings or investments. Why not show them a way to keep 320k from the 400k sale instead of only 200k, and still not have a mortgage payment on the new purchase? Just refer to the example above when John and Sally purchased without selling a home. John and Sally only use 80k from the 400k to buy the new house.