YOU CAN BUY A HOME WITH A REVERSE MORTGAGE!

THE FHA HECM for Purchase can help you downsize or upsize and move into your dream home. Perhaps you'd like to move to a warmer climate or move closer to children and grandchildren.  NO monthly mortgage payments!

The FHA HECM for Purchase program was designed to allow seniors 62 years of age and above to purchase a new home without having to pay any monthly mortgage payments!  The home must be your primary residence, and you always retain ownership of your home. Many senior homeowners are feeling the pinch of high taxes in certain states, home repairs, and homes that no longer fit their needs or lifestyle. Moving north to south or east to west or just downsizing is a great way to ease the burden of the high cost of living.

Afford More Home With Your Cash Investment

You can obtain a reverse mortgage and a brand new home all at the same time, and we make it easy!  I have talked with senior homeowners who would love to enjoy a warmer climate in the south or west and others who wish to purchase a brand new home that fits their current needs. Perhaps you are seeking a ranch-style home rather than your 2-level home. The HECM for Purchase may be the answer!

The FHA HECM for Purchase is insured by the Federal Housing Administration, and the FHA HECM for Purchase allows seniors to use the equity from the sale of their current home while the lender provides a portion of funds for the reverse mortgage 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 down less of a deposit on your new purchase!

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

• Right-size to a smaller home with less maintenance or monthly costs.
• Move into a ranch-style home instead of a home with an upper level.
• Buy a home closer to family or move to a retirement community.
• Senior communities that more amenities can offer a more enjoyable retirement.
• By purchasing a lower-cost home and lowering the cost of living with lower real estate taxes, retirement can be more gratifying.
• A HECM for Purchase (reverse mortgage) helps preserve your hard-earned savings and investment accounts, improving cash flow. while no monthly mortgage payments are required.

WHAT ARE THE HECM FOR PURCHASE ELIGIBILITY REQUIREMENTS?  

• Youngest title holder must be at least 62 years of age
• The home must be your primary residence and must be occupied within 60 days of  closing
• 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. Co-ops in New York state are also acceptable.
• Just as with all FHA HECM products, borrowers must complete HUD-approved counseling and 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, condo fees, and all property fees where applicable on the ongoing loan. (You continue to property taxes, insurance, any fees associated with the home, and maintain the property).

WHERE DOES MY DOWN PAYMENT COME?

The equity from your current home sale, savings, assets(or gift funds) are combined with the HECM for Purchase. This is all done in one single transaction! A certain portion of funds will be provided by you and a portion of funds is provided by the lender. The difference between the purchase price of the new home and the HECM for Purchase proceeds must be paid from qualifying sources: sale of a former residence, bank accounts, other qualifying assets. Gifts are acceptable but must come free of charge from a family member or friend and must be a gift, not a loan.  

HOW MUCH MONEY WILL I RECEIVE FROM THE HECM FOR PURCHASE? 

The amount of money you will receive for your purchase depends on the age of the youngest title borrower, current interest rates, the lesser of the appraised value, purchase price, or the maximum FHA lending limit.   (NOTE: Borrowers under 62 years of age can qualify as long as they meet all the loan qualifications).