How a Reverse Mortgage Can Help You Buy a New Home in Florida if You Are 62 and Older
As you enter retirement and your children have left the nest, you may realize you prefer to spend time in a home that better suits this stage of your life. A reverse mortgage loan, also known as a HECM, is designed for seniors age 62 and older. It allows you to access cash with no monthly mortgage payments. You will be able to defer payments until you die, sell, or move out of the home.
If you’re interested to buy a house in Florida with a reverse mortgage purchase loan, we’ll show you how this option can help you create your dream retirement.
This type of loan can be a key component of your retirement planning, it can provide financial help for now and for the future. Home equity is a large source of wealth for retirement-age adults. According to the National Reverse Mortgage Lenders Association, homeowners 62 and older held $3.5 trillion in home equity in the third quarter of 2017.
A reverse mortgage purchase loan allows you to tap into this equity and use the funds to buy a new home in Florida.
Some key benefits include:
- Eliminate monthly mortgage. Get access to cash to pay for other important expenses.
- Improve your purchasing power. The funds from a reverse mortgage can help you purchase a better home and improve your cashflow.
- Move into a more appropriate home. Get a lower-maintenance home, move closer to friends and family, or find a home that matches your lifestyle needs.
Reasons to Buy a New Home as a Senior
It may be possible, now that you’re older, that your home seems too large for your present needs. Perhaps you have a big property that requires more maintenance than you’re now willing to do. Having a smaller and more manageable home might be what you’re looking for in your retirement.
Or, it may be the case that in your older years, you’ll want a one-level property fit with handrails, ramps, and wider doorways.
Perhaps you want to move to a warmer climate. No matter the reason, a reverse mortgage can help you enjoy retirement in a new home.
Using a HECM for a Purchase
The reverse mortgage was approved to be insured by the FHA (Federal Housing Association). It is a government-insured home equity loan exclusively for seniors. It allows seniors to access their equity without having to increase their monthly expenses.
The loan evolved to include a new variation where seniors could accomplish two goals in one transaction. They could now access their equity, and at the same time, purchase a new home. It saves money by only having one set of closing costs because it consolidates two financial transactions into one. This new loan type became known as HECM for Purchase.
Obligations of Borrower
In order to avoid defaulting on a HECM purchase loan, you’ll have to continue to pay property taxes, homeowner’s insurance, association fees, and all maintenance expenses for the home.
You must move into the new property within 60 days after closing and it must be your primary residence.
Your loan officer will review all requirements with you in detail. Call us for a free consultation at 954-507-7553 to learn how you can buy a house in Florida with a reverse mortgage purchase loan.
When is a HECM Purchase Loan Due?
A HECM Purchase loan has no specific due date. However, there are a few events that would cause the loan to become due and payable:
- The home is sold.
- The last remaining borrower or non-borrowing spouse passes away or leaves the home as their primary residence for more than 12 consecutive months.
- The borrower fails to meet obligations and loan terms.
Get a HECM Purchase Loan Program Quote Today
Fourpath Mortgage honors the opportunity to speak with you about the HECM purchase loan in Florida. There’s no better way to buy a home if you’re 62 or older and want to purchase a new home with your equity.
Call 954-507-7553 to let us assist you with questions you may have about a reverse mortgage purchase loan program.
Please fill out the short contact form below to start your home purchase.