HECM for Purchase Program
Reverse Mortgage for New Home Purchase
Are you interested in using the equity from the sale of your current home to fund the purchase of a new home? If you’re 62 or older, you can!
How does it work? Instead of purchasing a new home and then securing a reverse mortgage, the HECM for Purchase program allows you to get your down payment for your new home from the proceeds of the sale of your previous home. The rest of your purchase price comes from the HECM loan.
The lender uses your down payment, your previous home equity, and the value of your new home to calculate the reverse mortgage loan amount. You then receive cash via the reverse mortgage, which must be prepaid upon the sale of your home or when you pass away.
Benefits of HECM Purchase Program for Purchasing a New Home
- No monthly mortgage payments required.
- Minimal credit/income requirements.
- Loans are permitted on new home builds as long as the property is complete and ready to be occupied.