Seeking Reverse Mortgage Advice for a Potential Deal
Backstory: A friend of mines, who isn't on BiggerPockets, has been offered to purchase the home that they are renting. I have offered him a few options, but he would like to see if anyone has any other creative solutions.
There are 2 main challenges that he is facing:
1.) He can't get approved for traditional financing because his current income it too "new." He has tried to bring on 2 family members as co-signers but they still aren't able to get approved for the mortgage that they need.
2.) There is a reverse mortgage (RM) on the property, so time is of the essence.
Property details:
Type: Single family residence
RM payoff as of April 2020: ~$470k, we are guessing it's around $480k-490k at the time of this writing (Nov 2020)
Market value: $700k-$750k, based on recently sold comps of same exact home
The seller is asking for $70k proceeds from the sale of the home.
Any advice or tips are greatly appreciated.
Thank you in advance!