Purchase Your New Home with a HECM for Purchase loan!
What is a Reverse for Purchase Loan?
A Home Equity Conversion Mortgage (HECM) for Purchase is a reverse mortgage that may allow seniors, age 62 or older, to purchase a new principal residence using loan proceeds from the reverse mortgage. Read more about the details below.
If you are interested in seeing what you may qualify for, use our reverse mortgage calculator to get a no obligation estimate or give us a call at (800) 779-1020
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Find out how much you may qualify for by completing the calculator form
Or Call Us at (800) 779-1020
Phone Policy - Please Read
By submitting this estimate request form, I authorize HighTechLending doing business as Golden Heritage Financial to contact me to discuss the information submitted on the form in order to provide information about the HECM loan product, answer any questions you may have, help determine your qualification for the HECM reverse mortgage and if you’re interested, help you apply for the loan, even if the telephone number provided is currently listed on a corporate, state, and/or federal Do-Not-Call list(s). I understand that I am not required to give my consent as a condition of purchasing any goods or services from HighTechLending doing business as Golden Heritage Financial. I may revoke my consent at any time by contacting Samy Khoury at skhoury@hightechlending.com.
Important Disclosure
- The borrower remains responsible for property taxes, hazard insurance and home maintenance, and failure to pay these amounts may result in the loss of the home; and
- Charges will be assessed with the loan, including an origination fee, closing costs, mortgage insurance premiums and servicing fees.
- The loan balance grows over time and interest is charged on the outstanding balance
- At the conclusion of a reverse mortgage, the borrower must repay the loan and may have to sell the home or repay the loan from other proceeds
- Interest on a reverse mortgage is not tax-deductible until the borrower makes partial or full re-payment.
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HECM For Purchase Home Loan Overview
How Does a HECM for Purchase Work?
- The borrower sells their current home
- Then finds their new principle residence to buy
- They then use a portion of their proceeds from the sale of their home as a down payment on the new home
- Financing the rest of the loan with proceeds from their reverse mortgage loan
- This is all completed as a single transaction and results in a new home, money in the bank and no monthly mortgage or interest payment. (borrower is responsible for paying property taxes and insurance and maintaining the home).
How Much Down Payment is Required?
The required down payment is generally between 45% to 62% of the purchase price. The actual amount is calculated based on the buyer’s age or Eligible Non-Borrowing Spouse’s age (if applicable). This assumes closing costs will be financed. The rest of the funds to purchasing the home come from the HECM loan. This provides buyers the ability to keep more assets to use as they want, while maintaining the advantages of no required monthly mortgage payments.
How is it Repaid?
With flexible repayment features the borrower can choose to repay as much or as little as they like each month, or make no monthly principal and interest payments. The flexible repayment feature may make it easier for a buyer to afford the home they really want and improve cash flow by using cashing out equity in the home purchased.
You may already know that as with any mortgage, the borrower must keep current with property-related taxes, insurance and maintenance as part of their ongoing loan obligations. Repayment is generally required once borrowers sell the home, pass away, cease using the home as a primary residence or fail to meet their loan obligations. Foreclosure is possible if the borrower fails to comply with the conditions of the loan.
HECM Reverse Mortgage Used to Purchase a New Home Recap
A HECM For Purchase home loan offers qualified borrowers the ability to move to a new home, while utilizing the features a HECM Reverse Mortgage offers. This may be an attractive option for Oregon homeowners looking to upsize, downsize, or just move closer to family while simultaneously improving their financial resources and augmenting their retirement income, allowing them to maintain or potentially improve their financial freedom and lifestyle they’ve earned over years of hard work and sacrifice. Our main goal is to ensure you have the information you need to make an educated decision about reverse mortgage loans and access to us as a trustworthy local lender.
Reverse mortgages can be a great option for qualified Oregon homeowners looking to improve their retirement income or have additional financial resources that allow them to maintain or improve the freedom and lifestyle they’ve earned over years of hard work and sacrifice.
To schedule a free, no obligation discussion about the pros and cons of reverse mortgage loans, the HECM loan qualifications, or to gain a better understanding of how they work, do not hesitate to give our help line a call at (800) 779-1020, we’d love to meet with you at your home or have a talk on the phone to share anything you need to know about the HECM reverse mortgage home loan.
5 Important Things To Understand As You Consider A HECM Reverse Mortgage Loan
1
At the conclusion of a reverse mortgage, the borrower must repay the loan and may have to sell the home or repay the loan from other proceeds.
2
Charges will be assessed with the loan, including an origination fee, closing costs, mortgage insurance premiums and servicing fees.
3
The loan balance grows over time and interest is charged on the outstanding balance.
4
The borrower remains responsible for property taxes, hazard insurance and home maintenance, and failure to pay these amounts may result in the loss of the home;
5
Interest on a reverse mortgage is not tax-deductible until the borrower makes partial or full re-payment.