Reverse Mortgage
DISCOVER THE HECM FOR PURCHASE LOAN
The Home Equity Conversion Mortgage (HECM) for Purchase Loan is a government-insured home loan that allows buyers 62 and over to use the equity from the sale of a previous residence to buy their next home in one transaction. As long as you live in the home, no matter what happens to the home’s value, you make only one initial investment, which is the down payment towards your new purchase.
SAFEGUARDS FOR BORROWERS
- Independent counseling is required by the United States Department of Housing and Urban Development (HUD)
- Because HECMs are non-recourse loans, borrowers will never owe more than the home is worth in the event of a sale.
- HUD requires a thorough evaluation of borrowers’ finances to ensure that they are able to comply with the loan terms for the life of the loan.
- Borrower must continue to pay for property taxes, homeowner’s insurance, and maintenance.
- Loans are available to borrowers with a non-borrowing spouse under the age of 62. Surviving and eligible non-borrowing spouses can stay in the home as long as they comply with the loan terms.
HECM BENEFITS
- No monthly mortgage payment
- Increase purchasing power
- Down-size to a low maintenance home
- Stay close to friends and family