If you are 62 years or older, the Home Equity Conversion Mortgage (HECM) for Purchase loan may help you buy your next home without required monthly mortgage payments.
The HECM reverse mortgage for purchase product is a Federal Housing Administration (FHA) insured hecm reverse mortgage that allows seniors to use the equity from the sale of a previous residence to buy their next primary home in one transaction. Regardless of how long you live in your single family home, condominium, multifamily or manufactured home, or what happens to your home’s value, you only make one, initial investment (down payment) towards the purchase, unlike a traditional mortgage.
Why Consider the Loan?
No matter what your needs may be, this may help you:
• Eliminate monthly mortgage payments
• Increase your purchasing power
• Pay less upfront investment
• Right size to a smaller, lower maintenance home
• Buy a home closer to family or friends
• Lower your cost of living during retirement
• Enjoy carefree living in a senior housing community
Your closing costs and interest rates are at historical lows and loan amounts on loan balances on a primary residence can be at historical highs.
If your spouse is under age 62, she can be an eligible non borrowing spouse and remain in your home for life.
For eligibility considerations, see our In-Depth Information.
To find out how much you will be eligible to receive towards your purchase price on a HECM for purchase loan, give us a call or simply fill out your request on our Custom Proposal page.
Note: Proprietary-Jumbo-Reverse loans are also available for purchases of single and multi-family homes and condominiums with a higher sale price from $800,000 to $10 million. Non-FHA approved condominiums are also eligible.
Selling a previous home and purchasing a home in the same calendar year will benefit for favorable tax considerations.