A Mortgage-Free Home with HECM for Purchase
Would you benefit from moving to a home that is more accessible or otherwise more suited to your lifestyle as you age? A reverse mortgage is a specialized, federally mandated type of loan that can help you achieve this goal. At Great Florida Lending Inc., our loan officers specialize in reverse mortgage, also known as home equity conversion mortgage (HECM). We help clients from Miami, Kendall, Hialeah and Coral Gables use reverse mortgage for purchase to achieve their goals. Contact us today with any questions or schedule a consultation about your unique financial situation and the options available to you.
A New Home Without a New Mortgage
A reverse mortgage for purchase, or HECM for purchase, allows you to use the equity you’ve built in your home to buy a new primary residence. This type of loan is only available to a certain segment of the population. It was designed to allow seniors, age 62 and older, to use the wealth they’ve invested in their homes in the event that they would like to move.
With an HECM for purchase, you are able to live in your new home, mortgage-free. It is important to note that you will need to pay the difference between what your HECM principal limit is and the total cost of your new home. You will also maintain typical household costs, such as insurance and property taxes.
A Smart Move for Your Lifestyle
You may be considering a move for several reasons. Some of our clients are ready to downsize to a home with less space to clean and maintain. Others would prefer a more accessible home, for example moving from a two-level home to a single-level home. Still others would prefer to move to a new area to be closer to family or to a new area for other reasons.
There are some restrictions as to what type of home you can purchase. They include:
- Single-family homes
- Approved condominiums
- Approved manufactured homes
- 2- to 4-unit homes
We work closely with Realtors in the area to help ensure that your new home will meet the requirements for HECM set forth by the Federal Housing Administration.
Repaying an HECM for Purchase
It is important to note that you maintain ownership of your newly purchased home until you die or decide to move. Only then will your HECM loan become due. In the event of your death, your heirs will not be held responsible for your loan. If they would like to keep your home, they cannpay off your loan (at no more than 95% of your home’s appraised value). They may also choose to sell your home. If your home sells for more than the balance of your loan and interest, your heirs will receive any additional profits. If it sells for less than your loan is worth, they will not be held liable for any discrepancy.
Begin a New Journey Today
Our team will help facilitate the sale of your existing home, your HECM application and the purchase of your new home using your loan. We also work with qualified local Realtors to make your HECM as seamless as possible. Let our team in Miami, Kendall, Hialeah and Coral Gables help you live mortgage-free in a home you love. Contact Great Florida Lending Inc. for more information about reverse mortgage for purchase today.