HECM For Purchase: Reverse Mortgage
What is an HECM For Purchase Reverse Mortgage?
In Utah, a Reverse Mortgage, also known as a Home Equity Conversion Mortgage (HECM), allows the Utah homebuyer to purchase a home with a partial down payment but enjoy all the benefits of living in the home free and clear. A HECM Reverse Mortgage is insured by the Federal Government of the United States.
In the state of Utah, you may use a HECM for purchase to purchase a new principal residence.. When seniors use an HECM for purchase, it makes it easier to purchase a new home that suits their physical needs, or relocates them closer to family for a pleasant retirement.
Traditionally Reverse Mortgages are known to benefit people through refinancing their existing home but more and more people are using the HECM reverse mortgage to either downsize into a smaller, more suitable home, or upgrade into a better home through purchasing. In Utah, the HECM reverse mortgage for purchase allows seniors to make this move within a single transaction.
Who is eligible for an HECM for purchase?
In Utah, Reverse Mortgages or HECM loans, are reserved for senior borrowers where at least one borrower of the mortgage is at least 62 years old. Borrower’s have the ability to put down roughly 35%-50% of the purchase price depending on the age of the youngest borrower and the home must be the borrower’s primary residence in order to be eligible for an HECM for purchase. Requirements such as income and credit are more accommodating for HECM loans in Utah than standard forward mortgages; so even if you have gone through bankruptcy or foreclosure, you may still qualify.
What are the benefits of this loan?
- Buy your dream home with only 35%-50% down depending on your age
- Live mortgage payment free for life and your only responsible for normal property expenses such as taxes, insurance, and HOA’s
- Minimal credit requirements
- Minimal income requirements