Buying a home with HECM Purchase Reverse Mortgage
by Southern Trust Reverse

What is a Reverse Purchase Mortgage?
The Reverse Purchase mortgage is a Reverse Mortgage insured by FHA and the Department of HUD that is used to purchase a new primary residence.  As with a traditional HECM Reverse Mortgage, buyers must be 62 or older to qualify. 

Is the Reverse Purchase a new program?
Yes, this is a relatively new option for the Reverse Mortgage program.   The program was authorized by the US Department of Housing and Urban Development to begin on January 1, 2009.

What is the purpose of the Reverse Mortgage for Purchase program?
The HECM Purchase Reverse Mortgage Program was designed to allow buyers 62 or older to purchase a new primary residence using the FHA HECM program with a single closing.  It provides buyers with increased purchasing power and financial flexibility allowing a wider range of housing options when looking to relocate, downsize or to afford improvements to the new home to better meet physical needs. 

What types of homes are eligible?
Nearly all 1 to 4 family properties are eligible including condominiums, townhomes,  and units located in age restricted developments.  Co-Ops and Manufactured homes built before June 15, 1976 are not eligible under this program at this time.

What are the down payment requirements?
Buyers typically will qualify to finance up to 60% or more of the purchase price of the new home but calculations vary depending on the program selected, age of the borrower(s), interest rates and other factors.  Online calculators are available but because most do not accurately take into consideration all costs of closing,  local transfer and other taxes, speaking directly with a program expert experienced with both Reverse Mortgages and Purchase transactions is highly recommended.  

Qualification and maximum loan amounts are specific to each borrower.  Speak to a Reverse Mortgage Specialist today for more information and a custom quote specific to your situation 888-562-6510.