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HECM for purchase was designed to allow seniors (62+) to purchase a new residence which enables senior homeowners to relocate to other geographical areas to be closer to family, downsize to homes that meet their physical needs and into areas where there is no outside work required.

    Program Details:
  • No monthly payments
  • One close transaction
  • Property must be a 1 to 4 unit principal residence
  • Monetary investment at closing from allowable funding source and lender must verify source of funds
  • Proceeds are calculated on the least of: appraised value, sales price or FHA lending limit
  • Borrower must have cash or money obtained from sale of assets. Gifts from relatives, personal loans, bridge loans, cash withdrawal from credit cards or subordinate liens allowed
  • Must occupy the property within 60 days
  • New properties must have Certificate of Occupancy before application can be taken
  • No seller contributions or seller financing
  • Any home repairs must be completed by the seller prior to closing

A Great Option for Your Client

HECM for Purchase financing can make it easier and more affordable for your clients age 62 and older to buy a home that better fits their lifestyle, without having to take on monthly mortgage payments. (Of course, they'll still be responsible for paying property taxes and required homeowners' insurance.) This may help them more comfortably afford an upgrade, or spend less money out-of-pocket. The chart below shows hypothetical examples of the down payment required with this mortgage option.