Use a HECM to Purchase a New or Resale Home
You can use a Home Equity Conversion Mortgage (HEMC) for Purchase to buy a home by taking out the loan on that home, which must be a one-to-four-family dwelling unit to be occupied as a principal residence only. This loan can help you move into a home that perhaps would fit your future needs.
HECM Reverse Mortgages are available to seniors who would like to buy a home as long as:
- The youngest homeowner is age 62 or older
- The purchased home would be the primary residence
- The home would be occupied within 60 days of closing
- 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
With a HECM for Purchase, all of the normal costs associated with selling and buying property apply as well as the normal loan fees.