Those 62 and older may qualify for the HECM for Purchase Loan. It is a loan that may help you buy your next home without required monthly mortgage payments, except for taxes, insurance, and general maintenance. A HECM (Home Equity Conversion Mortgage), the most common type of reverse mortgage, is a way to turn a portion of the equity in your home into tax-free cash without having to make mortgage payments. Instead of mortgage payments, the loan is repayable when the last borrower leaves the home, as long as all loan terms are met. As part of the loan, the borrow is required to continue paying property taxes and insurance and maintain the home. According to the U.S. Department of Housing and Urban Development, more than half of a million households across the nation are using a HECM reverse mortgage insured through the Federal Housing Administration (FHA) that enables seniors to help manage their ever-increasing living expenses.
HOW A REVERSE MORTGAGE LOAN HELPS YOU
• Refinance your current mortgage
• Supplement your cash flow
• Pay for healthcare expenses
• Allow you to convert part of your equity into cash without having to sell your home or pay additional monthly bills
• Increased cash flow
• Bridge the Medicare Gap for ages 62-65
• Loan is Not Repayable Until You No Longer Live in the Home
• Loan proceeds are tax free
• Generally won't affect your Social Security or Medicare
• The Money You Get is Tax Free
* Some things are based upon circumstances.
*Please keep in mind that we are not offering tax advice.
• One spouse Must be 62 years or older to be eligible for a reverse mortgage. In Texas, both spouses must be 62 years or older
• Home must be primary residence (live there 6+ months per year)
• the property must be a single-family home, a 2 to a 4 unit dwelling or FHA-approved condo
• Must meet minimal credit and property requirements
• Must receive reverse mortgage counseling from a HUD approved counseling agency
• Must not be delinquent on any federal debt