Making a down payment

Before you can apply for a Home Keeper for Purchase loan, you have to be able to prove that you have a sufficient down payment for your next home. What counts as sufficient will vary depending on your age and how much you need to borrow. The younger you are, the more you'll probably have to pay out-of-pocket as a down payment. For example, people who run out to get a reverse mortgage on their 62nd birthday will probably have to pay upwards of 70 percent of the down payment out of their own savings. However, a 90-year-old will only be responsible for paying about 30 percent of the total down payment — yet another good reason to wait a few years if possible to get your reverse mortgage.

Like a forward mortgage's down payment, your funds can come from any of three major sources:

1 Your savings

1 Your investments

1 The proceeds from the sale of your home (if the down payment is more than Fannie Mae will lend you)

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