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The HECM for purchase is really an extraordinary loan when it comes to giving the senior market more freedom and flexibility to make important financial decisions during these years when life should be stress free. The reverse loan for a purchase has been one of the most underutilized loans within the mortgage lending industry; a number of the national lenders of reverse mortgages have been receiving favorable media attention as the aging senior population grows. These loans if used correctly can possess life changing results and is gaining popularity as a financial planning tool. The benefit of the HECM for purchase is that it provides financing on a home purchase that keeps the cash liquid from the prior sale which can then be utilized as a reserve or nest egg and at the same time eliminating the need for future mortgage payments on the new home. This program can help many seniors who either possess a large home or want to downsize to housing that is more manageable or want to move to a different area of the country such as snowbirds who move to Florida or Georgia for the warmer climates. What is the Home Equity Conversion Mortgage (HECM) for purchase? • An FHA-insured reverse mortgage loan Enables homebuyers, at least 62 years of age, to purchase a new primary residence and obtain a reverse mortgage loan in simultaneous transactions without the required monthly mortgage payments of a traditional mortgage • Allows buyers to combine reverse mortgage loan proceeds with a down payment from their current home sale or other assets, to purchase a new home Here's how a typical reverse purchase would work. Nell and Raymond Fike, both 70, want to buy a more accommodating single-story home near their grandchildren in Naples Florida.They work with a real estate agent to sell their current two-story home in New Jersey. In a separate transaction, they look into buying a new single-story home in a housing development being built in Naples FL by Ryland Homes. The Fikes meet with the realtor Susan and look at several homes priced at $300,000. Susan introduces the Fikes to Chris Beard. Chris shows the Fikes how the reverse mortgage loan for purchase could provide the additional funds they’ll need: New Home Purchase Price $300,000 Reverse Mortgage Proceeds $200,000 Cash Required To Close $99,691 The Fikes combine the $99,691 from the sale of their departure home with the $200,309 reverse mortgage loan to purchase a new home for $300,000 without the required monthly mortgage payments of a traditional mortgage. Susan handles two real estate transactions for the Fikes. Ryland Homes sells another home in the housing development. The Purchase Reverse loan is basically just like the conventional mortgage as far as the loan process goes, but allows seniors over 62 to buy a home without the typical credit or income requirements used in a conventional forward mortgage. With the HECM for Purchase they will just use a small part of the proceeds from prior home sale like a down payment and keep all of those other tax free profits as their nest egg and eliminate the future mortgage payment requirements. Chris Beard connects senior homeowners with National HECM approved reverse mortgage lenders lending Nationwide- For seniors, age 62 or older, to stay in their homes and to enjoy financial stability with the FHA regulated and insured Home Equity Conversion Mortgage (HECM). Additionally, we have access to the top 5 reverse mortgage lenders in the nation and can secure the best loan program and terms for our clients. Complete our short request form to have a licensed reverse mortgage expert to review your situation there is no obligation or cost. Learn More about :Reverse Mortgage HECM Purchase
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