HECM for Purchase
The HECM for Purchase program provides seniors the opportunity to buy a new home with proceeds from a HECM reverse mortgage. If you are 62 years or older, the program enacted in January 2009 allows you to sell and purchase principal residences with a single closing using the proceeds from your HECM loan. The Home Equity Conversion Mortgage program was created by the Housing and Economic Recovery Act of 2008 and was designed as an affordable alternative for seniors wanting to downsize to a smaller residence, relocating to be closer to family members or requiring special physical needs, such as ramp entrances to a one-story dwelling. If you are a senior homeowner who needs to move, and you have equity in your existing home, contact Trinity Reverse Mortgage at 1-866-707-4664 begin_of_the_skype_highlighting 1-866-707-4664 end_of_the_skype_highlighting for additional information about the FHA-insured “HECM for Purchase” program.
If you currently have a Home Equity Conversion Mortgage and plan to sell that residence to purchase a new home, the FHA’s HECM for Purchase program requires you to pay off the existing reverse mortgage before the new HECM can be insured. Any home financed through the government-backed program must also meet the FHA’s minimum property requirements for soundness and any repairs must be completed prior to closing. HECM mortgagors can elect to have their HECM lender set aside funds for other monthly charges such as homeowner association fees, property taxes, hazard insurance, ground rent, etc. At closing, the FHA does require the senior homeowner to use cash on hand or cash from the sale of liquid assets to satisfy the difference between the reverse mortgage loan and the sale price for the property. The use of seller concessions, loan discount points, builder incentives, etc. is strictly prohibited by law.
