If you are in the market for a new home and considering an all cash offer or a large down payment you should consider the benefits of a HECM for Purchase. This allows you to purchase a new home and establish a Reverse Mortgage in a single transaction. You must be 62 years of age and the property must be FHA eligible to participate. Diversify your funds and enjoy the benefits:
This means that you have more flexibility to buy the home you want and deserve, and as the first of the month rolls around, you will not have to worry about the principal and interest payment that traditionally would be due your mortgage lender.
You will now be using your new home as more than just a roof over your head. A new home with a HECM for Purchase will allow you to categorize your home as an integral part of your retirement plan. You will have increased cash flow to supplement your retirement income that otherwise, with a traditional mortgage, would be due in a monthly mortgage payment. You will also gain some estate planning benefits associated with a government insured Reverse Mortgage that will benefit your family and your estate in the event you have longevity and ultimately outlive your home equity.
Whether you are downsizing or moving closer to family, a big part of quality of life comes down to planning for it. Put your money to work for you and learn the advantages of a HECM for Purchase and how you can live mortgage payment free.
George H. Omilan