What is a HECM Loan?
What is a HECM Loan?
Are you a senior homeowner that feels your home no longer fits your needs? You don’t need the additional family space anymore, and maintaining a large home is expensive and can be a drain on your time and resources. It might be time to downsize and move into a one-story home or to a neighborhood closer to your family. The problem is that although your home has increased in value over the years, selling your current home may not cover the purchase price of a new one.
A reverse mortgage loan program designed specifically to help baby boomers aged 62 and older can help bridge that gap. A Home Equity Conversion for Purchase loan or H4P, is a safe, FHA federally insured loan program that helps seniors purchase a home more suited to their retirement lifestyle. It will allow you to make a one-time payment of 50 to 65% of the purchase price of a new home, while eliminating your monthly mortgage payments…for life. You will still be responsible for maintaining the home and paying any property taxes, home insurance, and HOA fees. But you don’t have to repay the loan until you sell your current home, or you no longer live there as a primary residence.
For many senior homeowners, this is a better option than paying cash for a new home or taking out a mortgage in retirement. H4P also effectively doubles your purchasing power, by allowing you to afford the home you want now while leaving enough cash left over to fund your retirement. To find out more about the H4P program, call us today.
David Blatt
Reverse Mortgages of Michigan
1-800-318-8000
davidjblatt@gmail.com