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The right home, with the right mortgage.

Thinking about down-sizing or up-sizing? Looking to relocate?

A Reverse for Purchase allows you to purchase a home without needing to take more cash out of your savings or investments. And it gives you all the benefits of a reverse mortgage, so there are no payments required and you receive borrower protections, too.

How Reverse for Purchase works

Real Life Example

Gloria Baker, age 72, has decided that the home where she raised her kids—currently valued at $1,200,000—no longer meets her needs in retirement.

Her kids have moved to another state, and ideally she’d like to buy the “right sized” home and live closer to them.

However, she wants to increase her liquidity without having a mortgage payment, or having to tap into her retirement assets.

The HomeSafe solution

Gloria decides to sell her home, which gives her net proceeds of $1,104,000. She finds a new home near her children for around $950,000.

To buy it, she decides to use $426,550 in proceeds from a HomeSafe for Purchase reverse mortgage and $535,080 from her home’s sale proceeds.

This increases her liquidity up to $565,920, and she has no mortgage payments.

Let’s compare your options

Both the HomeSafe for Purchase and HECM for Purchase offer borrowers the opportunity to purchase a new principle residence and establish a reverse mortgage in one transaction.

While each allows you to buy a home that fits your current needs without having to take on mortgage payments, the HECM for Purchase has a cap of $970,800 while the HomeSafe for Purchase provides for much higher loan amounts up to four million dollars.

Frequently Asked Questions

Still not sure about something? Click below to get quick answers on some of our most frequently asked questions.

The down payment for your home can come from a number of sources, just like any time you buy a home. The cash you bring to purchase the property may be from the proceeds of the sale of your previous home, or it may be from your savings. It could also be a combination of the two.

A reverse mortgage is a loan that enables homeowners and homebuyers age 55* or older to convert some of their home equity into cash or a line of credit. Some loans also let homeowners finance a new home purchase. With a reverse mortgage, you make no loan payments†. You continue to live in and own your home.

Unlike a traditional home equity loan or home equity line of credit (HELOC), you don’t have to repay a reverse mortgage until the home is sold** or the last surviving borrower (or a non-borrowing spouse who meets certain requirements) no longer lives in the home. The homeowners must maintain the condition of the home and stay current with property taxes and hazard insurance.

*For certain HomeSafe® products only, excluding Massachusetts, New York, and Washington, where the minimum age is 60, and North Carolina, Texas, and Utah, where the minimum age is 62.

  • HomeSafe loan limits are higher than the government insured HECM loans, up to four million dollars, while offering similar protections and features to the borrower.
  • HomeSafe borrowers enjoy no mortgage insurance premiums, competitive fixed interest rates and no out-of-pocket funds required beyond the appraisal (except for purchase).

To be eligible for a reverse mortgage, you must meet the following criteria:

  • You must be age 55* or older.
  • The home must be the borrowers’ primary residence.
  • The home must meet Federal Housing Authority (FHA) minimum property standards and flood requirements.
  • The home must be one of the following property types: single-family home; a two- to four-unit home with one unit occupied by the borrower; or a HUD-approved condominium. With new construction, you must have a Certificate of Occupancy or equivalent before you apply.
  • You must have sufficient home equity. A Reverse Mortgage Specialist from Finance of America Reverse LLC (FAR) can tell you if you have enough home equity to qualify.

*For certain HomeSafe® products only, excluding Massachusetts, New York, and Washington, where the minimum age is 60, and North Carolina, Texas, and Utah, where the minimum age is 62.

Download the Reverse for Purchase Brochure