Page 2 - WSAAG053_HECM for Purchase Booklet

What is a HECM for purchase loan? How much

A Home Equity Conversion Mortgage (HECM) is a type could I
of reverse mortgage insured by the Federal Housing
Administration (FHA) and offered exclusively to Americans 62 qualify for?
and older. Although HECM loans have been around since 1989,
the US Department of Housing and Urban Development (HUD)
approved and made this option available in January 2009 as a
way to purchase a home in addition to other options. The loan amount is
based on the age
of the youngest
How does it work? borrower or eligible

A HECM for Purchase loan combines your one-time initial down non-borrowing
payment (typically 29-62%) with proceeds from the HECM loan spouse, prevailing
to buy your next primary home in a single transaction. The down interest rates, and
payment must come from assets you already own (such as a
savings, checking, retirement account or equity from the sale of the value of the
your previous home). As with any loan, you must meet the loan home you wish to
terms, such as paying property taxes, homeowners insurance, purchase.
HOA fees and the costs of home maintenance, however, you
now have the option to eliminate monthly mortgage payments.

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