Seniors approaching retirement age sometimes consider selling their family home. Whether it’s to downsize to a smaller home, move closer to grandchildren, or buy a home in the country or on the beach, making the decision can be stressful. If you are at least 62 years old, the Home Equity Conversion Mortgage (HECM) for Purchase loan may help you buy your next home without having monthly mortgage payments.1
The HECM for Purchase is a Federal Housing Administration (FHA) insured2 reverse mortgage that allows senior homeowners 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 plan to live in the home, or what happens to your home’s value, you only make one initial investment (down payment) towards the purchase.
No matter what your needs may be, a HECM for Purchase loan may help:
Once you obtain your HECM loan, you must continue to meet the following conditions to maintain your loan in good standing:
While many people have heard of a reverse mortgage, many people do not know about the HECM for Purchase Program. Contact a licensed loan advisor today by calling us at (800) 976-6211 to find out if the HECM for Purchase Program is right for you.
1 Your current mortgage, if any, must be paid off using the proceeds from your HECM loan. You must still live in the home as your primary residence, continue to pay required property taxes, homeowners insurance, and maintain the home according to FHA requirements. Failure to meet these requirements can trigger a loan default that may result in foreclosure.
2 As required by the Federal Housing Administration (FHA), you will be charged an up-front mortgage insurance premium (MIP) at closing and, over the life of the loan, you will be charged an annual MIP based on the loan balance.
3 If your home needs repairs to be eligible for a HECM loan, you may be able to use the proceeds of the loan to accomplish this.