This allows the buyers to keep more assets to use as they wish, as compared to paying all cash, while still having the flexibility of no required monthly mortgage payments. (This range assumes closing costs will be financed.) The rest of the funds for purchase come from the HECM loan. HECM for Purchase: Required down payment between approximately 45% and 62% of the purchase price, depending on buyer’s age or Eligible Non-Borrowing Spouse’s age, if applicable.Traditional mortgage: Monthly principal and interest payment required.As with any mortgage, the borrower must keepcurrent with property-related taxes, insurance and maintenance as part of their ongoing loan obligations. Repayment is generally required once they sell the home, pass away, move out or fail to meet their loan obligations. The flexible repayment feature makes it easier for a buyer to afford the home they really want, preserve more savings and retirement assets, and improve cash flow. HECM for Purchase: Flexible repayment feature - The borrower can choose to repay as much or as little as they like each month, or make no monthly principal and interest payments.
Traditional mortgage: No age restriction (except being legal age to enter a contract).HECM for Purchase: Exclusively for home buyers age 62+.Real estate professionals who are interested in learning more about HECM for Purchase can download free resources from What’s different about HECM for Purchase versus a traditional mortgage? A Home Equity Conversion Mortgage (HECM) for Purchase is a reverse mortgage that allows seniors, age 62 or older, to purchase a new principal residence using loan proceeds from the reverse mortgage.
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