The HECM for Purchase (H4P) Loan was created by the Federal Housing Administration (FHA) and HUD to provide an alternative to a total cash purchase of a new home for today’s seniors.
A HECM for Purchase Loan allows senior home buyers to put approximately 50% down of the total sales price, the other 50% is the FHA-Insured Reverse Mortgage which requires NO monthly mortgage payments for life. So, it’s as if they paid 100% total cash for their new home.
Basically, the H4P allows seniors to keep 50% of the sales price liquid, invested or even used for upgrades to their new home.
There are NO required mortgage payments! However, borrowers are allowed to pay what they want and when they want. They can pay Interest-Only, Principal & Interest or Nothing! They are in complete control of the monthly interest on the loan.
The Loan Balance is never due until the last remaining borrower either passes away or sells. And at that time, the heirs will have the option to sell or refinance the home, pay off the balance, and keep any proceeds.
The HECM for Purchase is a “Non-Recourse” loan, meaning No Personal Liability, neither the borrowers nor their heirs can ever owe more than the current value of the home.
At some point in retirement the decision for many seniors to “Right-Size” starts with carefully identifying your priorities, requirements, stage in life, and matching it to the home or community that is a perfect fit for you whether it be:
Use the (Home Equity Conversion Mortgage) HECM for Purchase (H4P) product to buy a “Right-Sized” home that fits your needs without the financial burden of a mortgage payment. Combining a one-time down payment with the proceeds from a HECM allows you to complete a purchase transaction making it the same as if you bought your home with 100% cash. .
Since you don’t need 100% of the purchase price, the savings can allow you to reinvest the money back into your savings. The H4P can be just the thing you need to start living your retirement your way.
As you can see, the Federally Insured HECM is a unique program that Senior Lending specializes in. So, when the time comes to “Right-Size,” let our experienced loan specialists help you purchase your dream retirement home. Our goal is to provide you and your family with financial peace of mind, so you can live out your retirement the way you want.
To speak with a HECM for Purchase Advisor, please call 800-822-1190. We’re an H4P company willing to talk you through everything you need to know to make smart decisions about your local HECM for Purchase.
