Reverse Mortgage Purchase
HECM (Home Equity Conversion Mortgage) Loan – also known as a Reverse Mortgage – can be an important financial option for seniors, their family members, and financial professionals to consider as part of an overall retirement planning strategy or to help meet cash flow needs.
Over the Past 50+ years the Reverse Mortgage has positively grown in popularity and has developed into an intelligent option to increase the financial independence for homeowners 62 years of age or older.
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What is a Reverse Mortgage Purchase?
HECM (Home Equity Conversion Mortgage) for Purchase, otherwise known as a Reverse Mortgage Purchase allows home buyers age 62 years or older to Purchase an existing home or a new home from a Builder their home with a one-time investment of their own funds (typically from the sale of their previous home, or other retirement funds.
Essentially, you’ve purchased your new home with a one-time investment (Down Payment). This smaller one-time investment allows you to save money and reinvest the difference between your upfront cost and the full price of the home back into your savings or retirement, while still having the benefit of no mortgage payment.
A typical one-time investment (Down Payment) will range from 45% to 65% of the purchase price. The down payment is determined by the appraised value or purchase price (whichever is less), the current interest rates, and the age of the borrower.