Reverse Mortgage for Purchase

Learn more about using the Home equity Conversion Mortgage (HECM) for Purchase Program to purchase your next home and enjoy no monthly principal and interest mortgage payments!

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This program could allow you to:

  • Purchase a dream home and have no monthly mortgage payments
  • Downsize to more affordable living or purchase a more accessible home
  • Relocate to be closer to family

Powerful Homeowner Features:

  • Insured by the Federal Housing Administration (FHA)
  • Homeowner owns the title rights to the home
  • FHA Insured reverse mortgage that is a non-recourse loan.
    This means that there is no recourse to you, your estate or your heirs if the loan balance exceeds the home's value at maturity as long as you or your estate sell the property to pay off the debt. If you or your estate want to retain the property, the balance must be paid in full. Any equity remaining in the property after the reverse mortgage is retired belongs to you or your estate.
  • Program requirement for borrower(s) to attend counseling provided by an independent, third party, FHA approved counselor to ensure consumer's knowledge of program costs, and other possible options.

Reverse Mortgage for Purchase Criteria:

  • Homeowner(s) must be 62 years of age or older.
  • Property must be primary residence, not available for second homes, vacation homes, or investment properties
  • Must provide monetary investment at closing from allowable funding source and/or proceeds from sale of home
  • Home must meet and continue to meet minimum FHA property standards
  • Home must be occupied within 60 days of closing
  • New construction permitted if the Certificate of Occupancy (CO) is issued prior to the reverse mortgage application date.
  • Homeowner must continue to pay all property related fees, taxes and insurance, as these are not escrowed.
  • No delinquencies on any federal debt are allowed
  • Additional requirements may apply