Reverse Mortgage Loans
Discover the HECM for Purchase Loan
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 required monthly mortgage payments.
The HECM for Purchase is a Federal Housing Administration (FHA) insured reverse mortgage that allows mature adults 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 the home, or what happens to your home’s value, you only make one initial investment (down payment) towards the purchase.
Why Consider the Loan?
No matter what your needs may be, a HECM for Purchase loan may help:
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- Eliminate existing monthly mortgage payment
- Increase your purchasing power
- Pay less up-front investment than a cash purchase
- Right-size to a smaller, lower maintenance home
- Buy a home closer to family or friends
- Lower their cost of living during retirement
- Enjoy carefree living in a senior housing community.
Safeguards for Borrowers
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- Mortgage Insurance Premium (MIP) ensures the amount owed on the loan can never be more than the value of the home at time of sale
- Independent HUD counseling is required prior to loan application
- Lender may only look to the value of the home for repayment; no other assets may be attached if the loan balance grows beyond the mortgaged home value (non-recourse loan)
- Over 40% of the older home buyer market is accessing retirement savings to purchase a home