HECM For Purchase Stories

NYT: The Quiet Comeback of Reverse Mortgages

Features a DC area retired couple that relocated to Central PA using the HECM for Purchase strategy. **This couple was the personal client’s of Don Graves

WSJ: How to Buy a Home Using a Reverse Mortgage – July 20, 2016

With a home-equity conversion mortgage, seniors can finance the purchase of a new home without monthly payments. A very general article with not a whole lot of detail. But overall shared the legitimacy of the concept

WSJ: Reverse Mortgage Helps Client Buy a Home – Jan. 29, 2013

Except: The recently widowed client, in his mid 70s, had given up hope of selling his Sacramento home and buying a new house closer to his grown children south of San Francisco. He owned his $250,000 home outright. But the median house price near his children was nearly $600,000.

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Bankrate: Use a Reverse Mortgage to Buy a Home?

Excerpt: In 2009, the Federal Housing Administration introduced a new product called the Home Equity Conversion Mortgage for Purchase, or HECM, which allows older Americans to buy a new home by putting a reverse mortgage on it. So far, the product has been little used
There has been a lot of talk recently about the retirement income crisis in this country.  With nearly half of Americans at risk of outliving their money there is a growing focus on alternative income sources to the old three-legged stool of relying on a pension, Social Security, and personal savings to fund retirement expenses.

Many retirees have significant equity in their homes.  Home Equity is a potential asset that could be used to improve their retirement prospects or lifestyle. Approximately 65% of people 65 or older are mortgage debt-free.  There are a variety of methods to tap into the equity in a home. A reverse mortgage is one of those methods, but there are many pros and cons to a home equity conversion mortgage (HECM).  See article here.

Is A HECM For Purchase Right For You?

Some seniors want to remain homeowners, but not necessarily stay in their current home. These homeowners may have the ability to use a reverse mortgage loan to use the equity they have in their current home to move to another home while doing away with their monthly mortgage payment1 by using a HECM for Purchase.

A Home Equity Conversion Mortgage for Purchase often provides substantial savings over the alternative of purchasing a new home and later taking a reverse mortgage later.  See article here.

5000 sq foot home

HECM FOR PURCHASE OFFERS SENIORS A BETTER HOME BUYING OPTION THAN TRADITIONAL REVERSE MORTGAGE

http://www.epconcommunities.com/blog/post.dT/HECM-For-Purchase-offers-seniors-a-better-home-buying-option-than-traditional-reverse-mortgage#.U_33IMVdWww

 

Is A HECM For Purchase Right For You?

http://reverse.org/blog/hecm-for-purchase-right-for-you/

 

St. Louis Couple Uses HECM Mortgage To Buy Dream Home In Florida

http://www.huffingtonpost.com/buck-wargo/st-louis-couple-uses-hecm-mortgage-to-buy-dream-home-in-florida_b_7662948.html

 

 

HECMHomebuyersGuide\


How To Purchase A Home With A HECM

Why One Of The Nation’s Leading Lifestyle-Rich Home Developers Has Made The Reverse For Purchase Program A Priority

7 Reasons Your Retired Buyers Need You To Know About Reverse Mortgages

Should A Client With An $1100 Income, Living In A 5,000 Sq Foot Home, Consider A Reverse Mortgage?


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1Mil H4P

 

RELATED ARTICLES


Buying A House With A HECM Reverse Mortgage – Guest Post By Dr. Jack Guttentag

Do The Math! 16 Reasons To Look At The Reverse Mortgage For Home Purchase – Guest Post By Genie McGee

Is This The Perfect Time To Take Advantage  Of A Reverse Mortgage?

95 Things Real Estate Agents Do To Sell A House – This Is Truly Amazing!

Buy a Home With a Reverse Mortgage?

New Reverse Mortgages Rules Open Door To A More Secure Retirement – Forbes Article/Video


St. Louis Couple Uses HECM Mortgage To Buy Dream Home In Florida

 

 

 

Using Home For Retirement Income

 

 

 

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HECM For Purchase Offers Seniors a Better Home Buying Option Than Traditional Reverse Mortgage

If you’re a senior citizen looking for a way to leverage your home equity to buy your retirement home, you might do better with Home Equity Conversion Mortgage (HECM) than a traditional reverse mortgage.

In the conventional scenario, you sell your current home to recoup the equity you have, which has probably declined somewhat since 2008, when the market turned. Then you took out a reverse mortgage on the new home.

So, not only did you lose some of the home equity on your other residence, but you’re now paying two closing costs—to purchase the new home and then to do the reverse mortgage. Years ago, when you looked ahead toward your retirement, is this what you envisioned?

HECM for Purchase (H4P) offers a more favorable option. This FHA-insured program lets you buy your new home using a reverse mortgage in a one-step process. You use the equity in your home to pay for your next home, which you are purchasing for a fraction of the selling price. That price is based on your age—the older you are, the lower the price.  See article here.

St. Louis Couple Uses HECM Mortgage To Buy Dream Home In Florida

Andy and Beatrice Hollimon had endured Midwest winters for decades, and it was time to fulfill their dream of moving south.

“We owned our home in St. Louis area for quite some time, and we vacationed in South Florida the last five to six years,” Andy says. “We were looking to change locations for retirement and were zeroing in on the geographic region that we preferred.”

Andy had worked in human resources management for 40 years and later worked as an adjunct instructor and business administration department chair at Stevens — The Institute of Business & Art. He had worked hard, and they wanted to buy their dream retirement home without dipping into their retirement savings and investment income. They didn’t even think it was possible to get the type of home they ended up buying until watching a television commercial on HECM mortgages.

See article here. (I think this one has been posted on the site before)

Buy a Home With a Reverse Mortgage?

There are two constants when I write a blog post about reverse mortgages, also known as home equity conversion mortgages when the mortgage is insured by the federal government. One is that the haters will weigh in on how bad reverse mortgages are for seniors. The other is an reverse mortgage lender will point out that seniors can use a reverse mortgage to purchase a new home.

For the haters, it’s pretty clear that people aren’t saving enough for retirement. One of the places they have been able to build wealth is in the equity in their home. Untapped, it’s a reserve for future financial needs. When the need becomes more immediate, it’s a way to tap the equity in your home, without creating a monthly payment stream that a cash-out first mortgage or a home equity loan would require.  See article here.

How to Buy a Retirement Home With a Reverse Mortgage

Many older people know about using a reverse mortgage to tap their home equity and use the money to stay in a longtime home. But it’s also possible to use a reverse mortgage to buy a home. This can be helpful to people who want to relocate and can’t afford mortgage payments in retirement or are unable to qualify for a conventional mortgage. It may also be a useful financial tool for delaying Social Security or conserving cash.  See article here.

Purchasing a Home with a Reverse Mortgage

Using a reverse mortgage to help seniors buy a house works exactly the same way a reverse mortgage works when you are refinancing a home in which you currently live. The difference is that you are doing the reverse mortgage on the home you are purchasing, not on the home you are selling. The combination of your down payment, and the reverse mortgage on your new home, will equal the purchase price.  See article here.

(I found this online.  Would you like it added to the master list?)

Use a Reverse Mortgage for Purchase of a New Home

For many years, seniors have used Reverse Mortgages to transform equity in their homes into cash without burdening themselves with monthly payments or risking foreclosure. This year however, the US Federal Housing Administration has enacted new legislation allowing seniors to get Reverse Mortgages on properties they haven’t even purchased yet.

Not everyone qualifies for a Home Equity Conversion Mortgage (HECM) for Purchase transaction. But if you do, you can use a Reverse Mortgage to buy your dream home and escape the need for the burdensome monthly payments associated with a normal mortgage.  See article here.

(I found this online.  Would you like it added to the master list?)

 

Understanding Purchasing a Home with a Reverse Mortgage

Many people know that a reverse mortgage allows homeowners age 62 and older to tap into the equity of their homes to improve their cash flow and eliminate their monthly mortgage payments. But did you know it also can be used as a home financing tool, making it easy for homeowners to buy a different home?

The Home Equity Conversion Mortgage for Purchase (also called HECM for Purchase, H4P, or reverse mortgage for purchase) is a loan program designed specifically to help homeowners age 62+ to purchase a home that’s more lifestyle-appropriate, without needing to make monthly mortgage payments. (Of course, the borrower is still responsible for property taxes, homeowners insurance, and property maintenance. A HECM is a home-secured debt payable upon default or a maturity event.)  See article here.


Should a Client with an $1,100 Income, Living in a 5,000 Sq. Foot Home, Consider a Reverse Mortgage?

See article/blog (which one?) here – (From HECM Advisors Group Real Estate Blog)

How to Purchase a Home With a HECM Reverse Mortgage

See article/blog here

7 Reasons Your Retired Buyers Need You to Know About Reverse Mortgages

See article/blog here – (From HECM Advisors Group Real Estate Blog)

How to Add $35,000 to Your Clients Retirement with One Simple Strategy!

See article/blog here

Why Doesn’t Every Realtor in the Country Know About This?

See article/blog here

Why One of the Nation’s Leading Lifestyle-Rich Home Developers Has Made the Reverse for Purchase Program a Priority

See article/blog here

For More Real Estate Articles Go HERE


FHA Condo Approval Overview

See article/blog here

Should Condo Owners Press Their Boards to Seek FHA Approval? – Dr. Jack Guttentag

See article/blog here

7 Benefits of FHA Condo Approval – Pros, Cons and Common Misconceptions

See article/blog here

Should a Condo Become FHA Approved? – What Every Owner Must Know

See article/blog here