HECM for Purchase in Phoneix, AZ - How Does it Work?
You’ve likely heard of the reverse mortgage to stay in your home and use your home’s equity, but buying a home with a reverse mortgage? How does it work?
The HECM for purchase in Phoenix, AZ is a useful program for seniors over 62 looking to downsize, move closer to family, or buy a home that requires less maintenance.
What is a HECM for Purchase?
Like the typical reverse mortgage, the HECM for purchase in Phoenix, AZ is a mortgage that doesn’t require monthly mortgage payments. Only this time, you’re buying a home versus staying in your existing home.
Your only financial obligations are the down payment, property taxes, homeowner’s insurance, and regular home maintenance. You don’t have to make any payments and the loan doesn’t become due and payable until you move permanently or pass away.
Like the standard reverse mortgage, you must meet basic guidelines to be eligible for the HECM for purchase.
At least one borrower must be over 62 years old
The home must be your full-time (primary) residence
You must meet the financial requirements set forth by HUD
The Benefits of the HECM for Purchase in Phoenix, AZ
Lower your household’s fixed costs – Without a required mortgage payment, your household expenses are lower in retirement, making it easier to enjoy your time without the stress of excessive obligations.
You don’t have to spend down as many (or any) assets – The worry of spending down retirement assets early in retirement doesn’t exist when you can use a HECM for purchase, using your existing home’s equity as the down payment without the worry of a monthly payment
Approval is much easier than a traditional mortgage – Not everyone is eligible for a traditional mortgage during retirement. Without income, it’s often hard to qualify unless you have enough assets to use for the asset depletion method (dividing assets over the loan’s term).
You can use your home’s equity to cover the down payment – If you’re selling your primary residence, you can use the money to cover the required down payment and financial conditions for the HECM for purchase.
HECM is non-recourse – If your new home’s value decreases and you owe more than its value when you move or pass away and your beneficiaries inherit it, the current home’s value satisfies the mortgage when you or your heirs pay it off. No one will have to pay more than the home is worth.
If you’re thinking about moving during retirement, a HECM for purchase in Phoenix, AZ may be a great way to achieve your goals. You’ll keep your retirement funds liquid and available for necessary spending while owning the home you want.
If you’d like to learn more about the HECM for purchase, grab a copy of my free book by visiting www.reversemortgagelive.com. This is a limited time offer so act fast!
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