Reverse Mortgages - For Home Purchase!

Beginning in 2009, HUD has authorized the use of the HECM Reverse Mortgage for the purchase of owner occupied, 1 -4 family residences.This may change the way seniors purchase homes in retirement and, at the same time, allow them to safely increase their income in retirement.

An ever-increasing number of seniors are electing to relocate to a new home after retiring. In some cases, they do so in order to move into a retirement community complete with all of the retirement life style amenities.

In other cases, they are seeking a more 'senior friendly' residence. It may be smaller, or a single story versus their multi-level home. Others want less yard work and easier maintenance. Some seniors only wish to be closer to their children and grand children during their 'golden years'.

Whatever the reason it is happening with greater regularity so HUD created a solution - the HECM for Purchase scheme.

Why The HECM for Purchase Scheme Came About

Traditionally, 'relocating seniors' would sell the family home with lots of equity and use most of the proceeds to purchase a new, oftentimes smaller home, for cash. They chose the cash purchase route not because they had lots of it, but because most seniors are payment averse.

Now, thanks to HUD, seniors can have their cake and eat it too!

With the HECM for Purchase program, seniors can purchase a more suitable residence, use only a portion of the sale proceeds and defer all final payments until they no longer reside in their newly purchased home.

Seniors can invest the deferred portion of the purchase in a safe and secure environment and thereby increase their retirement income.

Call Harry on (800) 486-8786 extension 709 for further details - Harry is an expert in the HECM for Purchase Program!