The U.S. Department of Housing and Urban Development just announced the January 1, 2009 release date of the "HECM for Purchase" Reverse Mortgage. Under this program you will not be required to purchase your home and then re-apply for a HECM Refinance, saving seniors thousands in closing costs.
The HECM for Purchase program is available for 1-4 unit properties where the primary residents are aged 62 or older. The amount of money for the down payment is calculated by subtracting the net HECM money from the purchase price. Closing costs can be financed in the Reverse Mortgage or added to the cash down payment. Down payment money can not be financed. The property must meet all FHA requirements.
The HECM for Purchase will be a great opportunity for senior first time homebuyers and those with poor credit or insufficient income to qualify for a traditional purchase loan. Qualification for a Reverse Mortgage is not dependant on a credit score, and since there are no monthly payments the senior's income does not matter.
Senior homeowners looking to sell and buy will also benefit with the HECM for Purchase. The sale proceeds together with a Reverse Mortgage can be used to purchase their next home. By not having all their money tied up in their home they will have extra money to live a healthy and happy retirement.
Anyone interested to know more about the HECM for Purchase or to know the specific amounts available to them are encouraged to contact me.
Steven Moline is a Reverse Mortgage Consultant with First Priority Financial serving all of California. For more information, to ask questions or to receive a complimentary brochure contact him toll free at 866-885-5573 or on the web at http://www.RoyalReverseMortgage.com/Contact_Steve.htm
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