Until the last decade, if you were 62 or older and and wanted to buy a new home, your options were limited by the equity accessed from selling your home, your cash savings, and the size of any mortgage you could obtain. But in 2009, a new method for buying new homes was created by the Federal Housing Administration. The HECM for Purchase (H4P) loan lets seniors purchase a home with approximately 50% down or less depending on age. Following this down payment, seniors will never have a mortgage payment as long as they live in the home and meet eligibility requirements.*

H4P can provide seniors with new opportunities

If you’re eligible and want to live in a new home, the H4P could provide you with:

  • The opportunity to buy a home that better fits your needs and lifestyle
  • The chance to move to different part of your city, state or a different part of the country
  • The opportunity to live closer to your family
  • Greater home purchasing power
  • Reduced monthly expenses
  • The ability to save more money

H4P Eligibility Requirements

To buy a home using the H4P loan, the following requirements must be met*:

  • At least one borrower must be 62 or older (in Texas all borrowers must be 62 or older)
  • The purchase must be for a 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 from money acquired through debt)
  • The buyer must be able to maintain the home and pay property taxes, HOA fees and homeowner insurance

Contact Open Mortgage about this homebuying opportunity

Whether you want to buy a home better suited to retirement living, or dream of moving to a warmer part of the country, H4P can help make it happen. To learn more about this exciting opportunity, contact one of Open Mortgage’s friendly loan originators.

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  • Marci Mathers says:

    We are interested in an H4P loan. My husband is 71 and I am 67.

    • danrosino says:

      Thank you, Marci! We would be happy to help you. A member of our team will send you an email today to walk you through the process and learn more about how we can serve you. You’re also welcome to contact one of our offices directly. They are listed here: https://openmortgage.com/find-an-office

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