HECM - Home Equity Conversion Mortgage) We pronounce it "Heckum"
- FHA defines "HECM for Purchase" as a real estate purchase where title to the property is transferred to the HECM borrower, which the borrower will occupy as a principal residence, and, at the time of closing, the HECM first and second liens will be the only liens against the property.
There are 3 Major Benefits To Senior Homebuyers
- Gives homebuyers who are downsizing more purchasing power than if they had to pay all cash
- Designed to allow your seniors to purchase a new principal residence and obtain a Reverse Mortgage within a single transaction by eliminating the need for a second closing.
- Buyers do not have to "qualify" for monthly payments on the new purchase transaction. A significant detail to senior homebuyers on a fixed income.
Other Benefits to Senior Homebuyers
- Eliminates Monthly Mortgage Payments
- Borrower Maintains The Title
- Loan Is Non-Recourse
- Remaining Equity Goes To Borrower Or Borrower's Heirs, Not The Bank
- No Pre-Payment Penalty
- Usually No Income Verification Or Credit Score Requirement (If buyer is retaining their former home as rental property there are income requirements)
* Certain transactions will require "qualification" - ask your Reverse Mortgage Specialist for specific details.
An Example - Bob and Betty Buyer are purchasing a single story home and selling their two story family home.
- Bob is 76 and Betty is 75
- The clients' proceeds on their existing home after all expenses will be approximately $152,000.00
- With $152,000 to put into a new home and a HECM loan the clients have the purchasing power to obtain a home valued at up to $350,000 with no monthly mortgage payments - EVER!
I am happy to provide training and expertise to you on the HECM For Purchase. Please email me or contact me through the links on this blog. The training class is 1 hour in length and makes for a fun, learning experience to prepare you for this next great step in your life.
Deborah Nance, Reverse Mortgage Professional for Corona, the Inland Empire and Southern Californa.
By Deborah Nance
Your Local Southern California Reverse Mortgage Professional
Click the Learn More Button below to email me a question.
iReverse Home Loans, LLC, NMLS#810502 originates reverse mortgages in Alabama, Alaska, Arizona (MB-0919584), California, Colorado, Connecticut, Florida, Illinois, Indiana, Iowa, Kansas, Louisiana, Maryland, Massachusetts, Minnesota, Mississippi, Missouri, Nevada, New Jersey, New Mexico, Ohio, Oregon (ML-5378), Pennsylvania, South Dakota, Tennessee, Texas, Utah, Vermont (1164-MB), Virginia, Washington and Wisconsin.
Important Information: Reverse Mortgages are neither "endorsed" nor "approved" by the Federal Government. The FHA (Federal Housing Administration) provides certain insurance benefits for lenders and borrowers in connection with the lender’s HECM loans; the FHA does not make or originate loans. The owner(s) retain title to the property that is the subject of the reverse mortgage until the person sells or transfers the property and is therefore responsible for paying property taxes, insurance, maintenance and related taxes. Failing to pay these amounts or failure to maintain the condition of your property may cause the reverse mortgage loan to become due immediately. A reverse mortgage is a complex loan secured by your home. Whether such mortgage makes sense for you depends on your financial situation and needs. For these reasons, we strongly recommend that you consult with a qualified independent housing counselor, family members and other trusted advisers before making this decision. This website is not from HUD or FHA and was not approved by HUD or any government agency.