Reverse for Purchase
Use a reverse mortgage to purchase your next home!
Reverse for Purchase
A reverse for purchase can help you purchase a home with a reverse mortgage. By using the proceeds from the sale of your home (or other assets) with your new reverse mortgage proceeds, you can purchase a home in one single transaction!
Due to the features of a reverse mortgage, there will be no mortgage payments on the new home. Only property taxes, homeowner’s insurance, and maintenance costs must continue to be paid.
Down Payment: Your down payment will be larger than a traditional loan. However, proceeds from your reverse mortgage can be used to pay the initial amount.
No Monthly Mortgage Payments: No monthly mortgage payments are required on the new home, just property taxes, homeowner’s insurance, and maintenance must be paid.
Move to a Home Better Suited for You: Many people use this program to move closer to family and friends, to a place better for retirement, or to a home better suited for them.
Reverse for Purchase FeaturesHere's why an Reverse for Purchase Loan may be right for you.
- Purchase a home with your reverse mortgage proceeds
- Down payment depends on home price and age of youngest borrower
- Home must be your primary residence
- Move to a retirement area, closer to family and friends, or a home better suited for your needs
- Single-family homes, townhomes, and approved condos
Reverse for Purchase Loans
Find answers to some of the most common questions about Reverse for Purchase Loans.
A Reverse for Purchase is a loan that allows seniors to use the proceeds of their HECM to purchase a new home. This you to save money by turning two transactions into one and you get the benefit of no monthly mortgage payments.
You could be eligible if the purchased home is your primary residence and if it’s a family home with one to four units or an approved condo. New construction is also eligible, but you must wait until the certificate of occupancy is issued for the appraisal to be completed. You will also need to with occupying the home within 60 days of the loan closing.
There are a few special restrictions. Gift funds are allowed for down payments, but some restrictions may apply. Also, if the borrower is using cash, it needs to be seasoned for sixty days. Lastly, there needs to be proof that the borrower has enough eligible funds for the closing, including any specific documents.