HECM For Purchase

Home Equity Conversion Mortgage for Purchase (H4P)

A Home Equity Conversion Mortgage (HECM) for Purchase is designed to help homeowners age 62 and older buy a new home using tax-free loan proceeds from a reverse mortgage. *The Home Equity Conversion Mortgage for Purchase, or H4P, was created in 2009 as a result of a housing trend that saw senior homeowners selling their homes, buying smaller, and then taking out a standard HECM on the new property. That meant they were paying closing costs twice – first on the real estate closing, then again when they took out the new Home Equity Conversion Mortgage.

Save money by not paying unnecessary fees!

With a HECM for Purchase from Reverse Freedom Mortgage, you could avoid those additional costs and purchase your new home for as little as 40% down. And best of all, you won’t have to make monthly mortgage payments.*

*Borrowers are responsible for occupying the home as their primary residence, keeping up with property maintenance, and staying current on paying property taxes, required insurance and any homeowners’ fees. The balance of the loan, including interest charges, becomes due when the borrowers do not use the home as their primary residence or fail to meet their responsibilities under the terms of the loan.

*As always, it is recommended that you consult a tax professional regarding your individual financial situation.

Main Benefits of a HECM for Purchase:

Cash Flow

You don’t make monthly mortgage payments, thus increasing the amount of your monthly cash flow! That’s more money to do what you love with the people you love.

Liability

Neither your estate nor your heirs are personally liable to cover the difference if your home is sold at a loss if, at the time of your passing, your loan balance is greater than the value of your home.

Are You Living in Your Ideal Home?

With a Home Equity Conversion Mortgage (HECM) for Purchase, you can have the flexibility and options to downsize, upsize, to buy the home that best accommodates your lifestyle. physical requirements Whatever your reason, with a Home Equity Conversion Mortgage (HECM) for Purchase, you can bypass the need to ever have a traditional mortgage.

Although a reverse mortgage is not right for everyone, it could be just right for you. Many home types are eligible, including:

One-to-four unit owner-occupied homes
Approved townhomes, condominiums, and manufactured homes

Qualifications for an HECM for Purchase:

Live in the new home as your principal residence and keep up with property maintenance
Own your current home outright or have paid down a considerable amount
Not be delinquent on any federal debt
Stay current on paying your property taxes, required insurance, and any homeowners’ fees
Have a minimum of 40% as a down payment on the home, the percentage of which is determined by your age. The older you are, the less you have to put down.

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