Purchase Power

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So, you are looking for a new home to be closer to the kids, to be in better climate, or just need a smaller place with less maintenance. You are going to make an all-cash offer from the sale proceeds of your current home.

Why the heck would you do that?

You can put down as little as 35% of the purchase price with a reverse mortgage. This means you can keep more of your sale proceeds from the sale of your current home.

The income requirements are lower compared to a traditional purchase loan. The credit requirements are easier compared to a traditional purchase loan. And, you get a reverse mortgage in one transaction!*

Eligible properties include:

  • Single Family Residences
  • Townhomes
  • HUD Approved Condominiums
  • 2-4 units (one unit must be your primary residence)
  • Manufactured home that meets FHA requirements

Use this chart to see samples of much lower down payment examples. Now that’s power!

The information being provided is for illustrative purposes only. Estimated fees, including up-front FHA mortgage insurance premium, range from $3,125 to $15,000 depending upon the value of the home. Closing costs vary and can affect down payment. Loan approval is not guaranteed and is subject to lender review. Please check with your HECM specialist for actual figures. Your loan balance, including accrued interest and fees, will become due upon a maturity or default event such as no longer living in the home as your principal residence, failing to pay your hazard insurance, property taxes or homeowners’ fees, or failing to maintain your property. Fixed rate HECMs are limited to a single full draw at loan closing with no future draws. This calculation is based on youngest borrower age 75. Loan charges will include origination fees, mortgage insurance premiums, and settlement costs which are to be determined. Some of these fees may be financed into the loan. As of June 18, 2015, HECM Fixed rate is 4.75%. APR range 6.680%-6.902%. Variable rate options also available. Interest rates and funds availability may change without notice and not be available at the time of loan commitment.

*A reverse mortgage for purchase requires the same qualifications as a reverse mortgage and is subject to lender review. A borrower must be at least 62. The new home must be the primary residence. Must meet the down payment requirement. Stay current on property taxes, homeowner’s insurance, and any HOA fees.