HECM For Purchase- Reverse Mortgage Purchase

A HECM for Purchase can help you move into your dream home. 

The HECM for Purchase program was designed to allow seniors at least 62 years of age to purchase a new residence and obtain a reverse mortgage all at the same time. With the HECM for Purchase, you can downsize or upsize and buy the home you've been wanting or move closer to your children and grandchildren.

The Home Equity Conversion Mortgage (HECM) for Purchase Loan can help you buy your next home without requiring any monthly mortgage payments.  The HECM for Purchase is insured by the Federal Housing Administration just as with any HECM.  The HECM for Purchase loan allows seniors to use the equity from the sale of their previous residence to buy their next home.  You will make one initial investment which is your down payment towards the purchase.

WHAT ARE THE BENEFITS?

• Eliminates monthly mortgage payments for the rest of your life
• Preserves your cash:  You receive a certain amount of proceeds from your lender towards your HECM for purchase.  This allows you to retain some of the cash from the sale of your current home so you can put less of a deposit on your new HECM purchase.  

WHAT ARE THE REASONS SENIOR BORROWERS USE THE HECM FOR PURCHASE?

• Right-size to a smaller home with less maintenance or monthly costs
• Buy a home closer to family or friends or in the same community
• Make retirement less stressful and more enjoyable by lowering the cost of living
• Senior communities with more amenities can offer a more attractive option
• Since monthly mortgage payments are not required, a HECM for Purchase loan may help preserve your hard-earned savings and improve cash flow.

WHAT ARE THE HECM FOR PURCHASE ELIGIBILITY REQUIREMENTS?  

• Youngest title holder must be at least 62 years of age
• The home must be the primary residence and must be occupied within 60 days of the closing
• The difference between the purchase price of the new home and the HECM proceeds must be paid from qualifying sources such as the sale of a former residence, the  buyer’s other assets, or savings.  Gifts are acceptable.
• The property must be a single family home, 2-to-4 unit owner-occupied dwelling, FHA approved condo, or manufactured home that meets FHA requirements. The borrower, if there are multiple units, must occupy one of the units.
• Just as with the HECM product, borrowers must complete a HUD-approved counseling session and will receive a HECM counseling certificate.
• Borrowers must meet HUD's financial eligibility requirements which determines whether borrowers can pay their property taxes, homeowner's insurance, and condo fees where applicable on the ongoing loan.
• 
  

 The FHA HECM program is regulated and insured by the Federal Government!  

HOW MUCH MONEY WILL I RECEIVE FROM THE HECM FOR PURCHASE? The amount of money you will receive from the HECM for Purchase depends on the age of the youngest title holder, current interest rates, the lesser of the appraised value, purchase price, or the maximum FHA lending limit.  Ask for a free proposal from Advisors Mortgage!