For Home Buyers

New Family Home

ARE YOU…

Downsizing or moving into a more suitable home?

Having trouble qualifying for traditional financing?

Tired of monthly mortgage payments?

How does this help me purchase a new home?

In 2008, the Federal Housing Administration (FHA) created the HECM for purchase loan. This innovative loan program was designed to help seniors purchase a new primary residence using a reverse mortgage – all within a single transaction.

How does it work?

Very simply, the HECM for Purchase replaces a traditional mortgage to finance your new home. A down payment is combined with the HECM for purchase loan proceeds to purchase the home. The down payment is usually obtained from the sale of your current home or from other savings or assets.

How much do I qualify for?

Qualifications for a HECM for purchase reverse mortgage are based on these important factors:

1. You must be age 62 years or older

2. Your new home must be your primary residence

3. You must have sufficient down payment to purchase the new home

Reverse mortgage for purchase BENEFITS

  • NO monthly mortgage payments = more cash for retirement
  • Loan proceeds are TAX FREE (always consult your tax professional)
  • NO prepayment penalty
  • Don’t use ALL of the cash from the sale of your existing home
  • Credit requirements tailored to seniors – NO credit score requirement
  • INCREASED discretionary cash for bills or retirement planning
  • Can sell the home whenever you wish
  • Remain on title and continue to own the home (property tax & insurance must be paid)