Buy a Home Without Monthly Mortgage Payments. If you are 62 years or older, the home equity conversion mortgage (hecm) for Purchase Loan can help you buy your next home without required monthly mortgage payments. 1 The HECM for Purchase is a Federal Housing Administration (FHA) insured 2 home loan that allows seniors to use the equity from the sale of a previous residence to buy their next.
Reverse mortgages are known as a way to supplement a senior’s fixed income by tapping equity that has accrued in their home. But reverse mortgages also can be used to buy a new home.
A reverse mortgage is a loan program designed to enable homeowners 62 years and older to convert part of the equity in their homes into tax-free cash flow* without having to sell the home, give up title, or take on a new monthly mortgage payment.
With a reverse mortgage, you borrow against the property’s equity but make no payments. Instead, the interest is added to the principal and both are paid off after the home is sold.
With a home-equity conversion mortgage, seniors can finance the purchase of a new home without monthly payments. With a home-equity conversion mortgage, seniors can finance the purchase of a new.
Buy With a Forward Mortgage, Repay With a Reverse Mortgage. Prior to the HECM for purchase program, the senior who wanted to purchase a house but could not afford to pay all-cash had to take out a forward mortgage to buy the house, then repay it by drawing on a reverse mortgage.
We are looking to buy a home, and signed a contract for sale for $730,000. The house appraised for just over that amount. Afterwards, we learned that the seller owes more than that ($760,000) on a reverse mortgage.
About the Author: The above real estate information on the how to sell a home with a reverse mortgage was provided by Bill Gassett, a Nationally recognized leader in his field. Bill can be reached via email at [email protected] or by phone at 508-625-0191. Bill has helped people move in and out of many Metrowest towns for the last 29+ Years.