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Is a HECM for Purchase loan right for you?
If you’re a homeowner, age 62 or older, you might be able to buy a new home without the burden of a monthly mortgage payment. The Home Equity Conversion Mortgage (HECM) is a federally-insured, reverse mortgage that provides a variety of options for utilizing that equity while still owning your home.
In 2008, the Federal Housing Administration (FHA) expanded the program to allow seniors to use the benefits of a reverse mortgage to buy a new home. HECM for Purchase allows you to make only a down payment of 35 to 50% (depending on your age), which can be funded by selling your current residence. Your down payment and the equity in your new home determine the amount of your reverse mortgage.
A HECM for Purchase loan provides substantial benefits for people who are ready to make a move to “right-size” their life:
· Save the money you would have spent on monthly mortgage payments (including the interest, which is added to the loan balance).
· Purchase a new home while conserving your life savings.
· Pay no closing costs out-of-pocket; they’re included in the mortgage.
· The loan has no maturity date. As long as you continue to live in your home, you don’t have to repay the loan balance. When you sell the home, move out, or die, you, your surviving spouse, or the estate is obligated to repay the loan.
Single-family homes and condominiums qualify for the HECM for Purchase program. HECM qualifications require that you:
· Are 62 years of age or older
· Occupy the home as your primary residence
· Have no outstanding federal debt
· Have the financial resources to cover property taxes, insurance, maintenance, and other fees, such as HOA.
Epcon Communities homeowners appreciate the value of the maintenance-free lifestyle. Exterior maintenance is included in the HOA, providing more leisure time.