HECM for Purchase
The HECM for Purchase program allows seniors 62+ to use a reverse mortgage to buy a new primary residence while eliminating monthly mortgage payments.
What Is HECM for Purchase?
Instead of buying a home with a traditional mortgage, seniors use the HECM program to finance part of the purchase. The buyer makes a large down payment (typically 45%–55%) and the reverse mortgage covers the rest — no monthly mortgage payments required.
How It Works
- Eligibility: Must be 62+ and purchase a primary residence.
- Down Payment: 45%–55% depending on age, interest rates, and home value.
- Property Types: Single-family homes, FHA-approved condos, and some 2–4 unit homes.
- Credit Requirements: No minimum score, but borrower must prove ability to pay taxes, insurance, and HOA.
- Mandatory Counseling: Required through a HUD-approved counselor.
Benefits
- Buy a new home with no monthly mortgage payments.
- Perfect for downsizing or relocating in retirement.
- Keeps more cash in reserves compared to buying outright.
- FHA insurance protects heirs from owing more than home value.
Fun Facts & Insider Details
- Popular Among Retirees: Many use it to move closer to family or into retirement communities.
- Down Payment Comes First: Funds often come from home sale proceeds, retirement savings, or gifts.
- Not Limited by Income: Qualification is based on equity and age, not income.
Who Is the Best Candidate?
- Seniors 62+ looking to downsize or relocate.
- Retirees wanting to keep more cash in reserves.
- Homeowners wanting a new home with no monthly mortgage payments.
FAQs – HECM for Purchase
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Do I still own my home?
Yes, you retain ownership and title.
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Can I buy any property type?
No. It must be a primary residence and meet FHA guidelines.
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What happens when I pass away?
Heirs can sell, refinance, or turn the home over to the lender — but will never owe more than the home’s value.
Next Step
- Llámenos: 305-440-1507
- Correo electrónico: info@torresnc.com
⚖️ Disclaimer (applies to all Reverse Mortgage pages): This information is for educational purposes only. Borrowers must meet FHA and HUD requirements, complete mandatory counseling, and maintain property taxes, insurance, and upkeep. Loan becomes due when the home is sold, refinanced, no longer the primary residence, or the borrower passes away.
