If you’re retired, your home’s layout, features, and location play an important part of your life.
And if you’re still living in the home where you raised your children, the home may no longer be ideal for your lifestyle and circumstances.
For example, it may be too large, have stairs that are difficult to walk up, or have a large yard that’s challenging to maintain. Or you may be living in a cold climate and want to relocate to somewhere warmer.
Regardless of your situation, moving into a new home can provide many ways to improve your retirement.
HECM for Purchase (H4P) helps seniors buy their ideal home
Until recently, if you were retired and wanted to buy a new home, your options were limited by the equity (wealth) you could access from selling your existing home, your cash savings, and the size of any mortgage you could obtain.
But in 2009, an entirely new way for retirees to buy new homes was created by the Federal Housing Administration.
The Home Equity Conversion Mortgage (HECM) for Purchase (H4P) lets seniors aged 62 and older combine two financial transactions — a down payment with a reverse mortgage loan — to purchase a new home.
Following your down payment and loan, you’ll have no monthly mortgage payments as long as you live in the home.*  Should you pass away, live elsewhere for more than 12 consecutive months, or sell the house, the loan comes due.
To be eligible for the for this exciting program:

  • You must be 62 or older
  • You must only use the mortgage on your primary residence (vacation homes are ineligible)
  • The money used for the down payment must come from checking, savings, investments, gifts or an existing house sale (it cannot come money acquired through debt)
  • You must be able to maintain the home and pay property taxes plus insurance

H4P lets seniors buy homes that better fit their needs
H4P can offer powerful advantages for retirees:

  • Greater home purchasing power
  • The ability to move into a home that better fits their needs
  • Reduced out-of-pocket expenses from not having a monthly mortgage payment *

To learn more about this opportunity to buy your retirement dream home, please contact me today!
*Must maintain property as primary residence and keep property taxes, insurance and HOA due current.

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