Purchase Reverse Mortgage Calculator Results Explained:

Program Choices: You may choose either Fixed or Adjustable Rate options (Treasury or Libor) Visit Reverse Mortgage Interest Rates

Funds by Borrower: This is the amount of funds you are able to commit as a down payment on your new property. The down payment on a purchase reverse mortgage can come from proceeds from another sale of real estate, sale of other personal property, or cash on hand including 401k, stocks, savings, bonds etc. Gift funds from Family are acceptable.

Purchase Power: This is an estimate of the maximum purchase price you are eligible for based on the down payment you are able to contribute to the transaction.

More About the Purchase HECM:

Exciting news to Senior Americans who have wanted to downsize, upsize, move closer to family and friends, move into senior communities for the activities or amenities they offer, or for those who find that their current home simply does not meet their needs any longer.

HUD issued their Mortgagee Letter (#2008-33) which outlines many features and explains how they intend to implement this feature.  The purchase feature will not go into effect until January 1, 2009 and will contain many additional requirements.  While not all of the improvements we had hoped to see based on the Bill are included in the purchase program (specifically the inclusion of cooperative units), HUD did a very good job of getting this program out and did make it “borrower friendly” for bona fide senior purchasers.  In a nutshell, HUD put as many safeguards in place as they felt they needed to avoid fraud and abuses while allowing for as many different property types and transactions as they felt they could under the guidelines.

Links of Interest:

If you or a loved one would like to take advantage of this opportunity give us a call

Toll Free 888-801-2762 Ext 1 or request a free purchase reverse quote