Mortgage Opportunity for People over 62
Mortgage Option for Seniors Over 62
The HECM for purchase program was specifically designed for seniors as a way to downsize, right size, move close to family without using all the equity from the sale of their homes to purchase another home.
Similar to a reverse mortgage yet instead of tapping into the equity and staying in your home you are selling your home taking a part of the equity or all of it to possibly get a newer bigger home and only needing 55 to 65 percent to put down. I view this as right sizing, which a lot of us do as we get older. Living in a home that most closely meets your needs.
One time payment which is approximately 55% of the home price (the older you are the less required down). No monthly mortgage payments, ever. Must be 62 years or older, the home has to be your primary residence, easy to qualify for not the same standards as a regular mortgage loans.
You have to have enough income to the real estate taxes, home owners insurance, HOA dues if any and maintain the home If you move the balance on the loan will need to be paid. Yet if for some reason the mortgage balance is more than the value of your home, you will not nor your heirs be responsible to make up the difference. The HECM is a non recourse loan. It is an FHA insured mortgage and you pay a mortgage insurance premium up front when you get the loan.
This mortgage for purchase program is eligible for single family homes, condos, manufactured/mobile home. The upfront money can come from the equity in your home or other assets.
Even in the Bay Area it is possible. The loan limit is $765,000. This means you can buy a higher priced home, and use other assets to make up the difference.