HECM Program

Discover the HECM for Purchase program for buyers 62 and Better

The safe government insured Home Equity Conversion Mortgage (HECM) allows for use of the loan proceeds, and your down payment, to purchase a primary residence within a single transaction.  It is an innovative product that allows you to use the equity from the sale of your previous home, or money from your savings, to fund the purchase of a new home without a monthly mortgage payment.

This Program allows you to:

  • Downsize for more affordable living
  • Upsize to a more expensive home with no monthly mortgage payments.
  • Move to a senior community

Some Benefits of the Program:

  • No monthly mortgage payment.
  • Non-recourse loan.
  • FHA insured loan.

 

There are many more benefits for you on this program.

Example:

Jim and Sally Hudson want to sell their present home and purchase one closer to their daughter in another city.  They are both 75 years of age. They can now purchase a new home using the HECM for Purchase!

If they decided to:

Downsize

Cash after sale: $300,000
Cost of new home: $400,000
HECM proceeds*: $225,000
APR 6.57%
Cash needed to close: $174,200
Cash remaining after purchase: $125,800

Upsize

Cash after sale: $300,000
Cost of new home: $600,000
HECM Proceeds*: $343,700
APR 6.85%
Cash needed to close: $256,300
Cash remaining after purchase: $43,700