HECM for Home Purchase

You may be able to use a HECM for Purchase reverse mortgage loan to buy your next home. Some eligibility requirements are:

  • That at least one spouse be 62 years or older
  • The purchased home will be occupied within 60 days of closing
  • The purchased home must be your primary residence
  • The difference between the purchase price of the home and the HECM proceeds will be paid in cash from the sale of an existing home or another source of eligible funds
  • Gift funds may be an acceptable form of down payment, however certain restrictions may apply
  • If the homeowner is using cash, the cash must be seasoned for 60 days
  • There must be proof that the homeowner has “eligible funds” from qualifying sources for the closing. Depending on the source of funds, specific documentation may be required.
  • Single family home
  • Multi-family owner occupied homes (up to four units maximum, must meet FHA approval)
  • FHA approved condominiums
  • Cooperatives (must meet FHA approval)
  • Newly constructed principal residences where a Certificate of Occupancy or equivalent has not been issued by the appropriate local authority
  • Manufactured homes (must meet FHA guidelines)
  • Property must meet FHA’s minimum property requirements
  • Critical health, safety and structural integrity issues must be repaired
  • Repair set-asides are not permitted with the HECM for Purchase
  • The buyer cannot pay for any repairs before they own the home
  • The repairs must be included in the purchase agreement
  • All major home repairs must be completed by the property seller before the loan can closedontworryretirehappylogo

Special Restrictions

The property must be a primary residence and can be

Costs

With a HECM for Purchase loan the usual costs associated with selling and buying a property will apply as well as the fees associated with a reverse mortgage loan