Simplify Homeownership with a Reverse Mortgage Purchase

Purchase: A New Way to Buy Your Dream Retirement Home

Are you looking to purchase a new home in Texas using a Home Equity Conversion Mortgage (HECM)? Ken Andreas has the expertise to guide you every step of the way. Explore the details below or call now to discuss your options. 

What is Reverse for Purchase?

The Reverse for Purchase program, also known as a HECM for Purchase, allows seniors aged 62 or older to buy a new home using reverse mortgage proceeds. This program simplifies the process by combining the purchase and financing into one transaction, saving you the cost and hassle of multiple closings.

Created through the Housing and Economic Recovery Act of 2008, this program helps retirees move into homes better suited for their needs while preserving financial flexibility.

Why Consider a Reverse for Purchase Loan?

• Lower Out-of-Pocket Costs: Pay a portion of the purchase price upfront, with the rest covered by the reverse mortgage loan.
• No Monthly Mortgage Payments: Maintain flexibility in your retirement by eliminating monthly mortgage obligations (you’re still responsible for taxes, insurance, and maintenance).
• Streamlined Process: Only one set of closing costs, saving time and money compared to separate transactions.

Eligibility Requirements

To qualify for a HECM for Purchase Loan, you must meet these conditions:

• Be at least 62 years of age.
• Purchase a 1–4 unit property that meets FHA guidelines.
• Use the property as your primary residence.
• Complete FHA-approved housing counseling.

Eligible Properties

• Single-family homes, condos, or townhomes approved by FHA.
• Newly constructed homes with a certificate of occupancy.

Ineligible Properties: 

• Cooperative units.
• Bed and breakfast properties or boarding houses.
• Some manufactured homes (eligibility depends on specific criteria).

How the Process Works

1. Choose Your Home: Work with a real estate agent to select an eligible property that fits your lifestyle and meets FHA requirements.
2. Get a Professional Home Inspection: A home inspection is highly recommended to evaluate the property’s condition and identify necessary repairs.
3. Make Your Offer: Ensure your purchase offer includes contingencies for inspections and other protections.
4. Provide Required Funds at Closing: Cover the difference between the reverse mortgage proceeds and the purchase price using approved funding sources.
5. Move Into Your Home: You must occupy the property within 60 days of closing and meet all FHA requirements.

Funding Requirements

At closing, you’ll need to provide a monetary investment to cover:

• The difference between the HECM loan principal limit and the home’s purchase price.
• Any HECM loan-related fees not financed by the loan.

Approved Funding Sources:

• Proceeds from the sale of your current home.
• Withdrawals from savings or retirement accounts.

Ineligible Funding Sources:

• Seller contributions.
• Builder incentives.
• Loans or credit card advances.

Additional Costs

While reverse for purchase loans include standard HECM closing costs, there may also be:

• Transfer taxes.
• Recordation fees.
• State-specific charges.

Common Questions About Reverse for Purchase

What happens if I change my mind before closing?

You can cancel the transaction anytime before closing, but this may affect your earnest money deposit.

Are there differences between HECM for Purchase and Traditional Reverse Mortgages?
Yes, key differences include the property types allowed, cash requirements at closing, and the role of real estate agents in the process.

What repairs are required before closing?
The seller must address any health, safety, or structural issues before closing, as outlined in the purchase agreement.

Why Work with Ken Andreas?

Ken Andreas is an expert in Reverse for Purchase Loans, with years of experience helping seniors find their perfect retirement homes. Ken offers personalized guidance and ensures the process is smooth from start to finish.

Take the Next Step

Ready to explore your options for purchasing a new home with a reverse mortgage? Fill out the form below, and Ken Andreas will provide expert advice tailored to your needs!