HECM For Purchase

What is HECM for Purchase?

Home Equity Conversion Mortgage (HECM) for Purchase allows seniors, age 62 or older, to purchase a new primary residence using loan proceeds from a reverse mortgage. Specifically, the program allows seniors to purchase a new principal residence and obtain a reverse mortgage within a single transaction. This enables senior homeowners to relocate to other geographical areas to be closer to family members or downsize to homes that meet their physical needs, i.e., handrails, one level properties, ramps, wider doorways, easier to manage property, etc.

Requirements for HEMC:

A HEMC transaction has many of the same requirements as a reverse mortgage. In fact, a HEMC for Purchase transaction is specifically intended for applying a reverse mortgage to an existing property to purchase a new property without being burdened with new debt. The HEMC requirements are:

• The youngest homeowner is age 62 or older
• The purchased home will be primary residence
• The purchased home will be occupied within 60 days of closing
• No mortgage loan other than the HECM can be used to buy the purchased home
• The difference between the purchase price of the home and the HECM proceeds must be paid in cash or from the sale of an existing home

Applying for a HEMC:

Michael Fullam and the Trinity staff are here to help you with information and consultation designed to help you discover whether you qualify for a HEMC for Purchase, and if one is right for you and your situation. Call 1-866-707-4664 or complete a mortgage calculator application to speak with a Trinity staff member.