October 13th, 2016 | Retirement Planning, Reverse to Purchase Mortgage, Seniors, Reverse Mortgage, HECM Reverse Mortgage, HECM for Purchase
The statistical significance of using a HECM for Purchase to buy a new home is almost nil relative to the prominent use of a traditional HECM Reverse for refinancing. There are several reasons the HECM for Purchase is rarely used.
These are the primary draw backs that underscore the surprisingly low use of the HECM for Purchase relative to the standard HECM. The most daunting element is not the down payment but the complete lack of familiarity and understanding on the part of the buyers and their fiduciaries. Here are some of the prominent advantages for those that are motivated to investigate a HECM for Purchase further.
As the general public wakes up to the HECM for Purchase, we may see the use of a Reverse Mortgage for buying a new home increase. The more people consider planning for their retirement and future, the more they may consider investing time to understand the tools like the HECM for Purchase. Taking the binary view that downsizing your home equates to an all cash transaction that may restrict new home choice and affordability is not the whole equation. Prosperity may come to those that agonize over the apple to apple comparison always trying to create a new normal, but it often comes easier to those that choose wisely and innovate. It could be possible that an apple and an orange fit better as part of an overall retirement plan. That choice is for you to make.
Read more about HECM for Purchase on our website and other related blogs.
George H. Omilan
President-CEO - NMLS# 873983
Jefferson Mortgage Group LLC
Located in Fairfax County - Helping seniors with Reverse Mortgages in Virginia, Maryland, DC and Pennsylvania.
Questions/Comments encouraged.