The HECM (Home Equity Conversion Mortgage) for Purchase is a loan option for buyers who are age 62 or older. Commonly known as a Reverse Mortgage, the HECM provides many benefits to homebuyers seeking to live in a home that better fits their needs and have more financial stability. This type of loan offers the ability for you to purchase your dream home and never make another monthly mortgage payment again. So how does that work? By providing a down payment of anywhere from 35 – 50% of the purchase price, you are able to live in the home of your dreams and never make another mortgage payment for as long as you live in the home.
Who can benefit the most from the HECM for Purchase loan? ANYONE! (As long as you OR your spouse is 62 or older of course!). The HECM for Purchase loan fits anyone looking to downsize, have less home maintenance, move into a one story home, or increase their monthly income. The list goes on and on! By utilizing the benefits of the HECM for Purchase, many clients find that they are able to purchase a better home that they could only dream about. The HECM for Purchase really is a dream loan to purchase your dream home!
What types of homes are eligible?
Many types of one to four unit properties are eligible for the HECM for Purchase program. Such properties include single family homes, condos and PUD’s (Planned Unit Development). There are certain requirements regarding each of these property types and all must meet FHA minimum property standards. Some of the highlights for each property type include:
SINGLE FAMILY HOME Can be an existing home or new construction.
CONDO Condo must be in an FHA approved community If the community is not FHA approved, steps can be taken to get the community FHA approved PUD (Planned Unit Development) Required to own the land and not just the dwelling Homeowner association dues should be expected and traditionally cover maintenance of common community areas.
NEW CONSTRUCTION Must have Certificate of Occupancy (CO) prior to official loan application Certificate of Occupancy (CO) is issued by the local government agency certifying the structure is compliant and suitable for occupancy.
TYPES OF PROPERTIES INELIGIBLE There are a few common types of homes that are not eligible for the HECM for Purchase program. Some of these property types include second homes, vacation homes, manufactured homes and rental or investment properties. The property must be your primary residence in order to qualify for the HECM for Purchase program.
The idea of Owning your home for half the price sounds to good to be true but its not. Call me today and lets discuss your options.