As retirement gets closer, older Americans start to think about a myriad of different factors to make retiring more enjoyable. One big factor can be their living situation. Whether they want to move to a warmer climate, move closer to family, or just move to a house that is more suited for their physical needs, a lot of decisions go into this process. A Home Equity Conversion Mortgage (HECM) for Purchase allows retirees to purchase a home with no monthly mortgage payments.*
What is a HECM for Purchase?
A HECM for Purchase allows homeowners who are 62 years of age or older to purchase a new home and not have to make another monthly mortgage payment as long as they live in the home.*Though there will be no monthly payments,* the homeowner will have to come to the table with a larger down payment. . This amount is not set, meaning it varies from client to client. The older you are, the lower the down payment will be.
Why a HECM for Purchase?
Many people are curious as to why some may choose this program. There are a lot of reasons why the loan would be a viable option. Many who choose this program often want to downsize. And why not? All of their kids and grandkids are out of the house and a smaller home may be more practical and easier to maintain. Some people may use it to buy their dream home or one that can accommodate more people. Others wish to escape harsh winters, replacing icy roads and costly heating bills with sandy beaches and the warm sun. Meanwhile, new grandparents may move closer to their children to spend time with their grandchildren and to help the family out.
How to know if you are eligible:
To be eligible for a HECM for Purchase loan, you must:
– be 62 years of age or older.
– purchase a home in which you live for more than half the year..
– attend mandatory HUD (Housing and Urban Development) counseling.
– have enough money to pay the down payment.
If you are interested in a HECM for Purchase and want more information, please contact any of our licensed specialists.
*Homeowner is still responsible for taxes, insurance and property maintenance.