The Home Equity Conversion Mortgage (HECM) for Purchase allows seniors at least 62 years of age to purchase a home through a reverse mortgage. This can be a valuable option for seniors who need a new home that better meets their physical needs or who wish to move closer to family members.
You DO NOT make monthly payments on the new house because this is a reverse mortgage product. However, unlike a traditional reverse mortgage, HECM for purchase loans require a down payment. This must be paid by the borrower. The typical down payment required is based on the borrower’s age. The older the borrower is, the lower the down payment requirement will be. HECM for purchases are subject to the same guidelines as a standard HECM loan.