Discover the Reverse Mortgage for Purchase program, designed for buyers who are aged 62 or older.
The safe, government-insured Home Equity Conversion Mortgage (HECM) allows for the use of loan proceeds and your down payment to purchase a primary residence within a single transaction.
It is an innovative product that allows you to use the equity from the sale of your previous home, or money from your savings account, to fund the purchase of a new home. And the best part is that you won’t have to come up with a monthly mortgage payment!
- “Upside” to a nicer home
- Downsize to a more affordable house.
- Move into a senior-friendly community
- Move closer to family members and/or friends.
- Buy or sell a condo so you can relocate.
There are lots of benefits to the HECM program!
- You will not have to worry about coming up with money to pay a monthly mortgage payment. You will own the home you buy, but will be able to skip the payments!
- The loan is “non-recourse,” which means if you owe more than what the home is worth when the loan comes due, an FHA-managed insurance fund will cover the difference. If the home is worth more than what you owe, all of the remaining equity will belong to you and/or your heirs!
- Because the loan is through FHA, your home and your loan will be safe.
- You could use the FHA loan to supplement your income, which could come in handy if you are living on a fixed income.
- The income and credit requirements are minimal.
- You will only have to come up with one set of closing costs.
- Both fixed rate and adjustable rate options are available.
- As the homeowner, you will retain the title to your home.
- You will be able to finally buy your dream home!
- 10. Get started today!