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Wisdom Michigan - Senior Lending - Reverse Mortgages (HECM) in Grand Rapids, MI
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Can you buy a new home using a Reverse Mortgage?

by | Sep 24, 2024

HECM for Purchase Explained - Wisdom Michigan Reverse Mortgages

Yes! A HECM for Purchase boosts your purchasing power, making it easier to afford a home better suited to your current needs. It is a mortgage on your new home and  for adults age 62+. 

Unsure about how a HECM Reverse works?  Let’s use Mary as an example…

  • Consider Mary, a 76-year-old homeowner who is eager to relocate to a home closer to her family.  Mary sells her home for $300,000, expecting to net around $275,000 after fees.  With a HECM for Purchase, Mary could purchase a $450,000 home without taking on a new mortgage payment, using the funds from her current home’s sale to cover the cash needed for the new purchase. The new mortgage would cover the remaining funds for the purchase.
  • Even if Mary has a mortgage on her current home, a HECM for Purchase could still be an option. The net proceeds from her home sale would be lowered to pay off any existing balance, which may limit the new purchase price. This option allows Mary to move to a more suitable home without the financial stress.
  • Mary can also choose to stay in her current home and use a HECM Reverse to make home improvements without the burden of a large monthly mortgage payment. 

Regardless of your situation, I’m here to help. I can provide a no-obligation quote tailored to your needs. 

HECM loans are insured by the Federal Home Association (FHA) and regulated by the Department of Housing and Urban Development (HUD). Many industry updates to reverse mortgages have made these loans a safe and viable option for many homeowners looking to access their home equity.

Call me at (616)-965-0630 to schedule an in-person appointment, or contact us here.

Alicia Force 

RMLO | NMLS 793178

Thrive Mortgage | NMLS 2572692

*Homeowners are responsible to pay property taxes, homeowners insurance and when applicable, flood insurance and HOA dues. For a Reverse Mortgage this information was not produced by HUD or FHA and the information was not reviewed or approved by the Department of Government Agency. This is not an offer for credit approval or commitment to lend. Guidelines are subject to change. All loans subject to underwriting or investor approval. Certain restrictions can apply. 2024.

Lower LLC dba Thrive Mortgage.