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HECM REVERSE MORTGAGE FOR PURCHASE
A Home Equity Conversion Mortgage (HECM) for
Purchase helps you purchase a home by taking out a
reverse mortgage on that home. It's applicable for
the purchase of a one- to four-family dwelling unit,
to be occupied as a principal residence only. It
could help you move to a home that will better fit
your future needs.
HECM Reverse mortgages are
available to seniors who would like to buy a new home if:
- The youngest homeowner is
age 62 or older
- The purchased home will
be the primary residence
- The purchased home will
be occupied within 60 days of closing
- No mortgage loan other
than the HECM can be used to buy the purchased home
- The difference between
the purchase price of the home and the HECM proceeds must be paid in
cash or from the sale of an existing home
Qualifications
Special Restrictions:
- If the homeowner is using
cash (instead of the sale of your existing home) to make up the
difference, that cash must be ©seasoned© for 60 days.
- Cash from a gift is not
acceptable.
- To prove that the
homeowner has ©eligible funds© for the closing, any of the following
documents can be provided:
- Letter of Verification
of Deposit from the bank
- Proof of liquidation of
retirement assets
- Deed of sale
- HUD1 home sale
statement
The property must be the
primary residence and may be:
- 1-4 Units
- Condominiums
- Fully completed (with
certificate of occupancy or equivalent)
- Land contracts are
acceptable
Ineligible property types
include:
- Cooperatives
- Homes without a
Certificate of Occupancy or its equivalent
- Boarding houses
- Bed and breakfast
establishments
- Existing manufactured
homes built before June 15, 1976
- Existing manufactured
homes built after June 15, 1976 that fail to conform to the manufactured
home construction safety standards or lack a permanent foundation
What if the home needs
repairing? Most repairs aren©t critical but major ones have to be taken
care of before the transaction can close:
- Critical health and
safety and structural integrity issues must be repaired
- Repairs must be completed
prior to closing by the seller
- The buyer can not pay for any repairs before they
own the home
- The repairs must be
included in the purchase agreement
Costs
With a HECM for Purchase,
all of the normal costs associated with selling and buying property apply
as well as the normal Reverse Mortgage Fees.
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Learn About All Options |
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Toll Free Information
1-800-838-3726 |
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