- Call us today!
- 978-499-4811
The product allows you to combine a down payment from your own funds (e.g., proceeds from the sale of your current home) with the proceeds from the HECM for Purchase (H4P) loan to complete the purchase. The amount that you would be required to put down is roughly 40%-60% percent of the sales price of the home you are buying. The required down payment is determined by the age of the youngest borrower the current interest rates, and the purchase price of the new home.
You have the option to repay as much or as little of the loan balance each month as you would like, or you can make no monthly mortgages payments at all. The FHA guarantees that as long as you meet your loan obligations (which include maintaining the home and paying for property taxes and homeowners insurance), no repayment of the loan is required until the last borrower moves out or passes away. When the loan becomes due, you or your estate has up to 12 months to repay the loan balance, which is typically achieved by selling the home.
With a H4P loan, you sell your existing home. You then take out a reverse mortgage loan on the home you wish to purchase and combine that with the proceeds of your home sale to cover the down payment, along with additional funds if necessary.
Faded portion of bar represents the estimated Reverse Mortgage funds.
This information is provided as a guideline and does not reflect the final outcome for any particular homebuyer or property. The actual Reverse Mortgage available funds are based on current interest rates, current charges associated with loan, borrower date of birth (or non-borrowing spouse, if applicable), the property sales price and standard closing cost. Interest rates and loan fees are subject to change without notice. Following the closing of the home purchase, no further principal or interest payments will be required as long as one borrower occupies the home as their primary residence and adheres to all HUD guidelines of loan. Borrower must remain current on property taxes, homeowner’s insurance (and homeowner association dues, if applicable), and home must be maintained.
James and Mary, 62 and 59, want to move to a newly constructed home to retire. They want to keep the same size home they currently have, but home values are more than double in the new community compared to where they live currently. A Realtor® recommended using a reverse mortgage for purchase to buy a house similar to the one that they currently live in.
House and story are for illustration purposes only. House may not be available for purchase.
House and story are for illustration purposes only. House may not be available for purchase.
