With a HECM or HomeSafe for Purchase, your new home down payment is typically between 45% and 62% of the purchase price, depending on your age or your eligible non-borrowing spouse’s age, if applicable.
The rest of the funds for the purchase come from the HECM or HomeSafe loan. This allows you to keep more assets to use as you wish, as compared to paying the down payment with cash, while still having no required monthly mortgage payments.
This article is intended for general informational and educational purposes only, and should not be construed as financial or tax advice. For more information about whether a reverse mortgage may be right for you, you should consult an independent financial advisor. For tax advice, please consult a tax professional.