How It Works
With a reverse mortgage loan for purchase (also called HECM for purchase loan), you apply those loan proceeds to the price of a house you want to buy. You can use the equity from the home you are leaving or other funds to cover any leftover balance.
This can increase your purchasing power tremendously because it adds the funds from a reverse mortgage loan on top of the other assets that you already have—that includes the proceeds from the sale of your current home.
Hear How Kathy Used a Reverse Mortgage
Loan to Purchase Her Dream Home
Then What Happens?
You enjoy the same terms for any home with a reverse mortgage loan:
Never have to make monthly mortgage payments unless they want to
The home is theirs, in their name, and no one can make them leave
Simply pay homeowner’s insurance, property taxes, and maintain the home
Who’s a Great Fit for a Reverse for Purchase Loan?
The following are just a couple examples of people who find the living situation that’s best for their golden years.
$600,000 Home Sale Value
James and Mary currently own this home.
$800,000 Home Value
With a reverse mortgage for purchase, the proceeds from their old home would enable them to buy their much more expensive dream home—free of monthly mortgage payments. They just need to pay taxes, insurance, and maintain the home.
$800,000 Home Sale Value
Cindy currently owns this home.
$650,000 Home Value
With a reverse mortgage for purchase, Cindy could sell her current house, buy a $650,000 house, and have $170,000 to spend on an annuity for her grandkids. She would also never have to make monthly mortgage payments again. She just needs to pay taxes, insurance, and maintain the home.