Use a Reverse Mortgage to PURCHASE a new home!
Want to move to a home that better fits your needs?
You may be in luck! A HECM reverse for purchase allows eligible senior homeowners the ability to purchase a new home using their HECM loan proceeds with a transaction that only involves one set of closing costs. This is a huge advantage over buying a home and getting a reverse mortgage after, which would involve two different sets of closing costs.
See the matrix below to understand how much a Reverse for Purchase can help.
Program Overview
- This loan may be used to purchase an existing 1 to 4 unit property
- Home must be used as borrower(s) principal residence
- No additional liens are permitted upon completion of the loan (Lender in 1st position, HUD in silent 2nd)
- Borrower(s) must provide monetary investment at closing from allowable funding source
- The property must be occupied within 60 days of closing
- Newly constructed properties are required to have a certificate of occupancy issued by the time the HECM loan is insured by FHA (‘endorsed’)
- All of the basic HECM loan requirements rules apply to this program
