The Home Equity Conversion Mortgage (HECM) for Purchase program is a type of reverse mortgage that enables seniors to buy a new home and avoid the need to make any monthly mortgage payments1. By making a down payment on a new home, which can be as little as 40%, and using a HECM to cover the remaining costs, seniors are able to fund their new home entirely with their home equity. This type of reverse mortgage has a lot of positive benefits, as it provides the following advantages to seniors:

1. Financial security: With a HECM for Purchase, the senior does not need to make the same monthly mortgage payments as they did with their previous home. This means that the senior will have more financial security in their retirement years, as those payments will be absent.

2. Flexibility: With a HECM for Purchase, seniors have more flexibility when it comes to financing their new home. They can choose to cover the remaining cost with the HECM, or they can choose to supplement it with cash or other forms of financing.

3. Peace of mind: A HECM for Purchase enables seniors to purchase their new home without any worry about making a large amount of money up front. This provides a great deal of peace of mind, knowing that they can purchase their home without breaking the bank.

4. No need to relocate: With a HECM for Purchase, seniors are able to remain in the same area that they have been living in for years. This can be beneficial for seniors who are used to their neighborhood and would like to remain in it for the foreseeable future.

5. Stay in control: With a HECM for Purchase, seniors are able to remain in control of their new home. They can decide when and where to make necessary improvements, and they will also be able to keep any potential increase in the home’s value within their estate.

A HECM for Purchase program has many positive benefits for seniors, enabling them to finance their new home and live their retirement years in peace and security. For those looking for an effective way to purchase their new home without having to make a large amount of money up front, a HECM for Purchase program is an ideal solution.