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You may have considered the way a reverse mortgage could help you remain in your current home. Designed as a means for homeowners who are 62 and older to “age in place,” reverse mortgages are known for this key benefit. But did you also know that a reverse mortgage could help you purchase and move to a bigger, better home? You just might be able to buy your dream home in retirement with this little-known feature.
The Home Equity Conversion Mortgage (HECM) for Purchase is a specific type of reverse mortgage that enables borrowers to get a reverse mortgage and purchase a new home at the same time.
Say you live hundreds or thousands of miles away from your family and you’re looking to relocate to be closer. Why not use the home equity you have to upsize your home and make room for your family near and far? With this loan, you may also be able to purchase a home with new upgrades and appliances, or a floor plan that is more fitting for your lifestyle.
The qualifications are the same as in any reverse mortgage: borrowers need to be at least 62 years old and own their home outright, or have a substantial amount of home equity. As a borrower, you’ll also undergo a financial assessment and reverse mortgage counseling as part of the application process.
Many retirees have successfully used the reverse mortgage for purchase product to buy their dream homes and eliminate their mortgage payments. New construction homes are eligible, too, as long as they have been issued a Certificate of Occupancy, which typically happens when the home is near completion.
If you are interested in learning how you can purchase your dream home with a reverse mortgage, click here more information.