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Buy a New Home Using a Reverse Mortgage
Many people are surprised to learn that a reverse mortgage can be used as a home-buying tool. Known as a HECM for Purchase, this program allows you to combine the purchase of a new home and a reverse mortgage into one streamlined process. By using a single loan instead of two separate transactions, some buyers may benefit from lower overall closing costs and a smoother, more efficient path to homeownership.
More Home, Less Out-of-Pocket
With this option, eligible buyers can move into a new home without taking on a traditional monthly mortgage payment. As long as property taxes, homeowners insurance, and basic upkeep are maintained, the loan remains in good standing. This approach is designed to help you secure a home that fits your lifestyle while preserving cash and supporting long-term retirement planning.
A Better Fit for Your Next Chapter
A HECM for Purchase can make it easier to move closer to loved ones, choose a more accessible layout, or transition into a home that better suits your current and future needs. It’s an appealing solution for those who want to simplify, downsize, or adapt their living space without stretching their finances.
Important to Know
Like any mortgage, this is still a loan, and interest builds over time on the amount that’s been borrowed.
More Home, Less Out-of-Pocket
With this option, eligible buyers can move into a new home without taking on a traditional monthly mortgage payment. As long as property taxes, homeowners insurance, and basic upkeep are maintained, the loan remains in good standing. This approach is designed to help you secure a home that fits your lifestyle while preserving cash and supporting long-term retirement planning.
A Better Fit for Your Next Chapter
A HECM for Purchase can make it easier to move closer to loved ones, choose a more accessible layout, or transition into a home that better suits your current and future needs. It’s an appealing solution for those who want to simplify, downsize, or adapt their living space without stretching their finances.
Important to Know
Like any mortgage, this is still a loan, and interest builds over time on the amount that’s been borrowed.
How a HECM for Purchase Works
Sell your current home or use cash on hand as a down payment on your next home.
A HECM loan from V.I.P. Mortgage, Inc. finances the rest.
You continue to own and live in your home, while eliminating monthly principal and interest payments.
You remain responsible for taxes, insurance, and upkeep, just as with any home.
When the home is sold or you no longer occupy it, the loan is repaid from the sale proceeds.
Allowed Property Types
who qualifies for a
HECM for Purchase Loan
The HECM for Purchase program allows qualified borrowers to buy a home using a reverse mortgage structure. Eligibility is based on age, occupancy, property type, and qualifications outlined.
- One borrower must be age 62 or older
- Must occupy the home as primary residence
- Must have sufficient equity or cash for the down payment
- Must occupy within 60 days of closing
- HUD-approved counseling required
- Basic credit and income verification (taxes, insurance, maintenance)