Purchase a Home With a Reverse Mortgage
January 1, 2009 FHA began insuring Reverse Mortgages for purchases! The former Fannie Mae for purchase program ended December 31, 2008 and was replaced by the HECM for purchase program.
A HECM for purchase can help you achieve your dream home. The HECM for purchase program was designed to allow seniors at least 62 years of age to purchase a new residence and obtain a reverse mortgage all at the same time. You can downsize or buy the home you've been wanting or move closer to your children and grandchildren.
As with the typical Reverse Mortgage, the HECM for Home Purchase has a maximum FHA lending limit of $625,500.
You receive money from a HECM for Home Purchase Reverse Mortgage in the same way you receive funds from a HECM loan. However, you will have to come up with about half the money for the purchase. Eligible properties are: 1-4 unit properties and construction must be completed. Co-ops, homes without a C.O. (Certificate of Occupancy), and Manufactured homes that were built prior to 1976 are excluded.
What are the occupancy requirements? The HECM for purchase home must be your primary residence, and the HECM purchaser has 60 days in which to occupy the home. No seller's concessions are permitted. Bridge loans and interim financing (secured or unsecured) are prohibited. There can be no other existing loan but the Reverse mortgage unless the loans are satisfied prior to closing. All liens must be satisfied at closing; there must be clear title. Click here for HUD info page.
Credit card advances and equity loans cannot be used toward the purchase of the home or the closing costs.
Note: Manufactured homes that were built after June 15, 1976 must conform to the Manufactured Home Construction Safety Standards as evidenced by affixed certification labels (i.e., data plate and HUD certification label). The home must be on a permanent foundation as required in HUDs Permanent Foundations for Manufactured Housing Guide.
Reverse Mortgages can now be used to help you buy your dream home. Ask Your Reverse Mortgage Specialist to give you all the options on this truly great program.
HUD Approved Reverse Mortgage counseling is a required safeguard for Reverse Mortgages. Your HUD counselor will answer all your questions. Click Here
Reverse Mortgages are changing the lives of seniors and giving them more retirement options. Click here to see options and more information
Free Reverse Mortgage information, call 1-888-843-9797