If you want to purchase a new home to live in and you are a senior, you may be interested in an HECM for purchase reverse mortgage. This type of loan allows you to buy the new home you are interested in with the proceeds of the loan. It is a single transaction, which makes the process simpler for individuals who are looking to move closer to their family, downsize their living arrangements or simply to live somewhere different.
Understanding the type of property available for an HECM for purchase reverse mortgage might help you in the decision to obtain one. Single family or 2-4 housing units are eligible. The construction has to have been previously completed, and the house must be suitable to live in. The local jurisdiction should issue something equal to a certificate of occupancy as proof.
How you receive the funds you qualify for will be up to your title company. They will have to comply with state law regarding the disbursement of funds, and there could be some options that you’ll have to choose from. For example, you may be able to get the funds all at once after approval, or you may have to wait for monthly installments for the duration of the loan.
Knowing whether you qualify for an HECM for purchase reverse mortgage is best left up to the professionals. You will have to comply with certain requirements such as your age, the type of home and what type of mortgage you currently have. Your lender can sit down with you to go over all of it to help in qualification.
An HECM for purchase reverse mortgage is the perfect solution for many seniors. If you are considering obtaining funds to make a new home purchase, you may want to speak with your lender to find out if this is something you’ll qualify for.