You’ve found a home that makes sense for your next chapter. It’s closer to family, easier to maintain or finally has everything on one floor. Then you start comparing how to pay for it, and the excitement gets tangled up with the idea of another monthly mortgage payment.
A HECM for Purchase offers a financing option many buyers haven’t heard about. Qualifying buyers age 62 and older can combine their own funds with an FHA insured reverse mortgage to purchase a new primary residence. It may let you make the move while keeping more money available outside the house.
How the purchase comes together
You bring a substantial cash contribution to closing, and the HECM supplies the rest of the financing. The amount you need depends on factors including age, interest rates, the property value and applicable program limits. Richard will also account for closing costs and the funds needed to complete the transaction.
There isn’t one down payment percentage that applies to every buyer. Before you shop around a number, he can prepare a current illustration and identify the funds you’d need. Your Realtor can then help you search with a clearer understanding of your buying options.
What changes after you move
You own the new home and don't have a required monthly principal and interest payment while meeting the HECM terms. You’ll continue paying property taxes, homeowners insurance, applicable association charges and maintenance, and the home must be your principal residence. Those expenses belong in the purchase budget from the beginning.
Interest and other loan charges accrue, and the balance generally increases when payments aren't made. The loan will eventually need to be repaid, generally when the home is sold or the last borrower no longer occupies it, subject to applicable spouse protections. The review will show how that affects your longer term housing and family plans.
Make the decision before the contract gets tight
A HECM purchase requires property eligibility, a financial assessment and independent counseling with a HUD approved agency. Early coordination helps your Realtor understand the financing and gives you time to arrange your contribution. Richard can compare the purchase with paying cash and taking a conventional mortgage so the choice rests on actual figures.
If you’d like a different home but don’t like what the usual financing choices do to your budget, let’s explore the purchase option. A move closer to the people and places you enjoy may deserve a second look.