If you are considering the purchase of a new home, using a reverse mortgage program may be a very smart decision. It’s called the HECM for Purchase. HECM stands for Home Equity Conversion Mortgage and this program was released January 1, 2009. It quickly gained popularity as folks realized the program has many benefits. Homeowners 62 and older can purchase a home without the burden of monthly loan payment. *Actual payment will be greater because the homeowner is responsible for the payment of property taxes, homeowner’s insurance and home maintenance costs. Failure to make these on-going property charges or satisfy other obligations of the loan will cause the loan to become due and payable and may lead to foreclosure.
The program was designed to allow seniors to purchase a new principal residence and obtain a reverse mortgage within a single transaction, allowing them to pay only one set of closing costs for the two transactions. Senior homeowners qualify for a specific amount of money based upon the youngest borrower’s age and the appraised value of the purchased property as well as the sale price or the HECM mortgage limit maximum amount, whichever is lower. The closing costs are then deducted leaving a net amount to be used for the transaction.
"I want to thank my loan officer Mike Harrell for the incredible job he did on my Reverse purchase loan. Without this HECM loan I would not be enjoying my new home! Mike’s knowledge and expertise made the whole loan process stress free. He made sure that I understood every step of the transaction. He even attended the home closing at the title company. What Loan Officer does that??"Wanda N.
The program allows senior homeowners to relocate to other geographical areas to be closer to family members or downsize to homes that meet their physical needs, i.e., handrails, one level properties, ramps, wider doorways, etc. You may want to rent your current residence to obtain additional income. You may want to move to a warmer climate, closer to your family, or simply a smaller home that you can maintain easier. Be certain the new home fits what you need and want.
We can help you decipher all the information
about this program.
You need to understand the program and how it may work for your present and future needs. We are here to help guide you through the process of making the decision that is correct for you. Call us, let’s talk. Please give us a call today at (214) 269-3593 to schedule your consultation.
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