Learn how to buy your dream home with a one-time payment of approximately 50% of the home's purchase price, and never make a monthly mortgage payment.
*Homeowner remains responsible for property taxes, required insurance, Homeowner's fees, and maintenance of the property. |
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62 or older?
If you or your spouse is at least 62 and in the market to buy a new home, you will want to learn more about the FHA-insured HECM for Purchase program, or H4P for short.
What is a HECM?
HECM is the government assigned acronym for Home Equity Conversion Mortgage. The HECM is a loan that is insured by, and follows the guidelines of, the Federal Housing Administration (FHA), which is
part of the U.S. Department of Housing and Urban Development (HUD). FHA introduced the H4P program in 2009, but you may not be aware of it because it is not frequently advertised.
How does the H4P program work?
As long as you or your spouse is at least 62 years old, plans to make the new home the primary residence, and has the funds for closing (oftentimes through the sale of the previous residence), this is a safe and
strategic way to purchase the home of your dreams. You'll be able to purchase at a fraction of the purchase price and never have any requirement to make monthly mortgage payments.
The amount you need as your one-time investment to purchase the house (funds for closing) is based on the age of the youngest borrower and the total price of the home. For example, a 74 year old purchasing a $330,000 home would bring approximately $144,000 to closing, and we would finance the rest.
But wait... there's more! The H4P loan is the only purchase loan that does not require you to make monthly mortgage payments; you only need to pay your property taxes, homeowner's insurance and association fees (if any). That's it! Title and full control remains in your name.
The amount you need as your one-time investment to purchase the house (funds for closing) is based on the age of the youngest borrower and the total price of the home. For example, a 74 year old purchasing a $330,000 home would bring approximately $144,000 to closing, and we would finance the rest.
But wait... there's more! The H4P loan is the only purchase loan that does not require you to make monthly mortgage payments; you only need to pay your property taxes, homeowner's insurance and association fees (if any). That's it! Title and full control remains in your name.
Sound too good to be true?
Not at all. With a regular mortgage you make payments every month to the lender and when the house is eventually sold, any balance is paid off and you or your heirs keep the difference. With a HECM there
are no monthly payments but we are repaid in full with interest at the end of the loan. When you or your heirs sell the house, the loan balance is paid off and you or your heirs keep any difference. If for any
reason your loan balance exceeds the property value, FHA steps in and pays us the difference. You and your heirs are not responsible.
Still not sure you understand?
Don't worry; part of the process is education! I will explain everything in detail so you can make an informed decision. For more details and a custom scenario to match your individual
circumstances, contact:
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Nancy Burns (NMLS #138045) Loan Officer/HECM Specialist Office: 570-586-1554 Cell: 570-510-0917 nburns@mutualmortgage.com |
Mutual of Omaha Mortgage, Inc., NMLS ID 1025894. 3131 Camino Del Rio N 1100, San Diego, CA 92108. Subject to Credit Approval. These materials are not
from HUD or FHA and the document was not approved by HUD, FHA or any Government Agency. For licensing information, go to: https://www.nmlsconsumeraccess.org
Pennsylvania Mortgage Lender License 72932; Borrower must occupy home as primary residence and remain current on property taxes, homeowner's insurance, the
costs of home maintenance, and any HOA fees.
