HECM for Purchase

Reverse Mortgage Purchase
HECM For Purchase 

Seeking guidance on Reverse Mortgage Purchases? David Blatt is your go-to expert! Reverse mortgage loans can be a powerful tool for retirees aiming to purchase a new home. Whether you’re curious about eligibility, financing options, or the overall process, David has the expertise to navigate this exciting chapter in your retirement journey. Explore the details below or call today for a personalized consultation!

Considering a reverse mortgage for a property purchase? How does it operate?

Ready to script a new chapter in your retirement narrative? A HECM for Purchase loan could be the key to unlocking your dream home! Established by the Housing and Economic Recovery Act of 2008, this unique program empowers qualified seniors aged 62 and older to finance the acquisition of a new residence using proceeds from a reverse mortgage.

The allure of a HECM for Purchase loan lies in its efficiency. By amalgamating the home purchase and reverse mortgage into a single transaction, you’ll enjoy savings on closing costs compared to financing them separately. This program officially launched on January 1, 2009, adhering to all standard HECM requirements, with additional rules and regulations to consider.

Eager to delve deeper? Contact us today to explore whether a HECM for Purchase loan can help navigate your retirement journey.

What Are The Basics?

• Can purchase existing 1 to 4-unit property
• Property must serve as the principal residence
• Once the HECM purchase is complete, no additional liens are permitted (Lender in 1st position, HUD in silent 2nd)
• Must provide monetary investment at closing from an allowable funding source, see below for details
• Must occupy property within 60 days of closing
• Newly constructed properties must have a certificate of occupancy issued by the time the home is built.
• Equity Conversion Mortgage purchase loan is insured by FHA (‘endorsed’).

Differences between a HECM for Purchase and a Traditional HECM:

There are distinctions concerning eligible property types, required cash at closing, involvement of a Real Estate Agent in the loan process, recommendation of a professional home inspection, and certain closing costs.

Eligible Properties:

For those desiring federal backing, another term for reverse mortgages is Home Equity Conversion Mortgage (HECM) loans. Essentially federally-insured reverse mortgages, HECM loans offer the same features and benefits as traditional reverse mortgages, coupled with the added peace of mind of government protection.

Ineligible Properties:

– Cooperative units
– Manufactured homes (in certain circumstances they may be eligible)
– Bed and breakfast properties, boarding houses

Selecting A Home For Purchase & Getting An Inspection:

HUD strongly advises all seniors to obtain a home inspection from a licensed professional home inspector. While not mandatory, it’s recommended.

Closing Costs:

Standard HECM closing costs plus:
– Recordation fees
– Transfer taxes
– Varies from state-to-state