HECM for Purchase
This is a financing option specifically for home buyers who are age 62 and older that may help you get the funds you need to buy the home you want.
Unlike a traditional mortgage, there are no monthly principal and interest payments, which can help boost your cash flow. You own the home as long as you live in it.
It enables you to purchase a home by combining a one-time investment of funds with loan proceeds from a HECM to complete the transaction. The home you are purchasing secures the loan.
The loan is due when you:
Unlike a traditional mortgage, there are no monthly principal and interest payments, which can help boost your cash flow. You own the home as long as you live in it.
It enables you to purchase a home by combining a one-time investment of funds with loan proceeds from a HECM to complete the transaction. The home you are purchasing secures the loan.
The loan is due when you:
- Pass away
- Sell the home
- Move or transfer title
- Fail to meet the borrower responsibilities
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Borrower Responsibilities
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Eligible Properties
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Required Before Application
How does it work?
The HECM for Purchase program requires an up-front investment (down payment) from the buyer of about 45% to 55% of the purchase price. The down payment must come from assets you already own-such as money from the sale of a current home or investment or funds you have in a checking, savings, CD, or retirement account. The funds cannot be borrowed.
How is it different?
- Sales Contract-No seller concessions allowed
- HECM Counseling Certificate
- Certificate of Occupancy
How does it work?
The HECM for Purchase program requires an up-front investment (down payment) from the buyer of about 45% to 55% of the purchase price. The down payment must come from assets you already own-such as money from the sale of a current home or investment or funds you have in a checking, savings, CD, or retirement account. The funds cannot be borrowed.
How is it different?
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Traditional Mortgage
Limits the amount you have to invest up front, and lets you build equity over the life of the loan. However, the monthly principal and interest payments reduce your cash flow, and could be an unwelcome financial burden. |
HECM for Purchase
Requires no montly principal and interest payments throughout the life of the loan.* Interest and fees are added to the balance so that it increases over time, rather than decreasing. |
* Borrower is responsible for property taxes, homeowners insurance, and property maintenance in order for the loan to remain in good standing. A HECM is a home-secured loan that must be repaid upon default or a maturity event, such as when the home is sold, all homeowners have passed away, or the last surviving borrower no linger lives there as their primary residence.
Home
George Stewart
Reverse Mortgage Consultant NMLS 506558 (843) 771-3677 Office (843) 818-7676 Mobile (843) 872-9192 Fax george.stewart@cardinalfinancial.com |
Cardinal Financial Company, Limited Partnership
242B Luden Drive Summerville, SC 29483 Branch NMLS 2514834 |
Copyright © 2023 by George Stewart
All rights reserved. The author is solely responsible for this content and is not affiliated with or acting on behalf of any government agency.
All rights reserved. The author is solely responsible for this content and is not affiliated with or acting on behalf of any government agency.
This material is not from, approved, or issued by the FHA, HUD, or any government agency. The content on these pages is for informational purposes only and is subject to change without notice. Please consult a professional for tax or financial advice.
A reverse mortgage is a home loan and not a government benefit. The borrowers must continue to own and occupy the property as the primary residence and are responsible for paying property taxes, homeowner's insurance, and property maintenance.
A reverse mortgage is a rising debt, falling equity loan. Negative amortization causes the loan balance to increase as accrued interest and fees are added. Failure to comply with the terms and conditions of the loan could trigger a loan default that results in foreclosure.
Subject to underwriting approval. Application is required and not all applicants will be approved. Full documentation and property insurance required. Loan secured by a lien against your property. Fees and charges apply and may vary by product and state. Terms, conditions and restrictions apply.
A reverse mortgage is a home loan and not a government benefit. The borrowers must continue to own and occupy the property as the primary residence and are responsible for paying property taxes, homeowner's insurance, and property maintenance.
A reverse mortgage is a rising debt, falling equity loan. Negative amortization causes the loan balance to increase as accrued interest and fees are added. Failure to comply with the terms and conditions of the loan could trigger a loan default that results in foreclosure.
Subject to underwriting approval. Application is required and not all applicants will be approved. Full documentation and property insurance required. Loan secured by a lien against your property. Fees and charges apply and may vary by product and state. Terms, conditions and restrictions apply.
This website is not authorized by the New York State Department of Financial Services. No mortgage loan applications for properties located in New York are accepted through this site.
Cardinal Financial Company, Limited Partnership (NMLS ID 66247 )
3701 Arco Corporate Drive, Charlotte, NC 28273
Visit www.nmlsconsumeraccess.org for complete state licensing information.
Cardinal Financial Company, Limited Partnership (NMLS ID 66247 )
3701 Arco Corporate Drive, Charlotte, NC 28273
Visit www.nmlsconsumeraccess.org for complete state licensing information.