We just released a new page on HECM for Purchase. This article should help answer many of the questions that have been raised surrounding the new HECM for Purchase program. Excerpts are below.
Beginning on January 1, 2009, homeowners are eligible to take out a reverse mortgage to purchase a principal residence as part of HUD’s “Home Equity Conversion Mortgage (HECM) for Purchase Program.”
Definition (plain English)
HECM reverse mortgages are now available to seniors who would like to buy a new home if:
- 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
Look for more new content coming soon, and feel free to send feedback our way.