5 Reasons Why a HECM Loan for Purchase is a Great Option

HECM loans are specifically designed for seniors and can help you purchase a new home without needing any cash at closing or monthly mortgage payments.
Are you an older homeowner with lots of equity built up in your home? If so, you may be well-suited to take advantage of a Home Equity Conversion Mortgage (HECM) loan for purchase. This type of loan is specifically designed for seniors and can help you purchase a new home without needing any cash at closing or monthly mortgage payments. Let’s take a closer look at why this type of loan could be a great option for you.

No Cash Needed At Closing

A very attractive benefit of the HECM loan for purchase is that it does not require any down payment. That’s right, no money down! Since most seniors are living on fixed incomes, eliminating the need to come up with a large lump sum can make homeownership much more affordable. The equity in your current homes is rolled over to your new home. The only fees associated with this loan are normal closing costs like appraisal fees and title insurance premiums.

No Monthly Mortgage Payment Required

One of the biggest advantages of a HECM loan is that it does not require the borrower to make any monthly payments. With this type of loan, you’ll be able to access your home’s equity without having to worry about making regular payments every month. This can be especially attractive for those who are looking to supplement their retirement income but don’t want the burden of a mortgage payment.

Tax Benefits

Another great benefit of taking out a HECM loan is that there are significant tax benefits associated with it. Any money you receive from your HECM loan will not be considered income and therefore will not be subject to taxes. That means you can use this money as you wish without worrying about paying taxes on it at the end of the year.

Live Where You Want To

When taking out an HECM loan for purchase, it doesn’t matter whether the property is in another state, you can buy it! If you are wanting to move closer to family, downsize, live in a single level residence (no stairs) or live in a more climate friendly location this is all possible.

Access Your Equity Faster

With traditional loans, it typically takes many years before equity can be accessed using cash-out refinancing but with an HECM loan, funds become available sooner since they are paid upfront at closing rather than over time through monthly payments as with other types of mortgages. This makes them particularly attractive options to seniors who may want access their home equity quickly in order to pay medical bills or other expenses without having to wait years like they would with regular mortgages.

Let's wrap things up!

A Home Equity Conversion Mortgage for Purchase is an effective way to purchase a new home, allowing you to age in place without the worry of having to move or take on further debt. With its competitive interest rate and government guarantees, you can feel secure throughout the duration of the loan. This type of loan also offers many financial benefits to individuals who may not have sufficient savings or income to easily finance a traditional mortgage. Whether you are a senior looking for a safe and secure housing option, or someone seeking an innovative way to finance your dream home, HECM for Purchase could certainly be worth exploring as a permanent housing solution. If you believe this type of loan may be beneficial for your individual needs, contact us for more information about how we can help make it happen. We look forward to speaking with you soon!

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Mandy Page

Hello, I'm Mandy Page

I have been in the real estate industry since 2003, with most of my background focused on multifamily and single family rental income properties. I also have a heart for helping others with housing solutions ranging from property management consulting to land development to senior housing solutions. I’m excited to meet new people and find more ways I can offer housing assistance.

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Fill out the form below and I will be in touch for your free consultation. I look forward to talking with you!

Hi I'm Mandy!

Mandy Page

I would love to talk to you more about how you can use your existing home equity as a way to increase your financial security! I have personal experience with my parents that has led me to have a passion to help people who qualify for a reverse mortgage gain financial peace of mind. Please fill out the form below or you can also text ro call me at 208.985.4933.