Combine a reverse mortgage with the equity from the sale of your previous home, or from other savings, to buy your next home. A Home Equity Conversion Mortgage (HECM) for Purchase Loan from AAG can help you get "more home" without mortgage payments.*
What is a HECM for Purchase Loan?
A HECM for Purchase Loan, also known as a Reverse for Purchase, is a government-insured loan that gives homeowners 62 and older the convenience and flexibility to purchase a new home while eliminating mortgage payments. You make a down payment and let your HECM for Purchase loan from AAG cover the rest. And yes, you read that correctly, no mortgage payments as long as you continue to pay for property taxes, homeowner’s insurance and keep the home maintained.
Who is a HECM for Purchase Loan Good For?
Reverse mortgage for purchase loans have helped older Americans nationwide purchase a home that best suits their retirement goals and lifestyle.
How a HECM for Purchase Loan Works
A HECM for Purchase loan combines a reverse mortgage with the equity from the sale of your previous home – or from other savings and assets – to buy your next primary home in a single transaction. Regardless of how long you live in the home or what happens to your home’s value, you only make one initial payment toward the purchase, provided that you pay property taxes, insurance and maintain the property.
Who Qualifies for a HECM for Purchase Loan?
- You must be age 62 or older (a non-borrowing spouse may be under age 62).
- Your new home must be your primary residence (borrowers must occupy the property within 60 days of closing).
- You must have a sufficient down payment to purchase your new home and meet the financial requirements of the HECM program.
Features and Safeguards
The HECM reverse mortgage product has been improved over the years so that it can better meet the needs of older Americans. Today, there are important safeguards in place to ensure that it can continue to help consumers like you for years to come.
- You must complete reverse mortgage counseling with an independent counseling agency.
- You must undergo a financial assessment to ensure you are able to meet the financial obligations of the loan, which includes the ability to pay your property taxes and homeowners insurance.
- If your spouse is younger than 62, they can qualify as an eligible non-borrowing spouse and remain in the home even if you leave or pass away, so long as they continue to meet all loan obligations. (Borrower must continue to pay for property taxes, homeowner’s insurance and maintain the home.)
Want to purchase a home with over 50% down and no monthly mortgage payment*? Learn how! Call AAG today.