Griffin Financial Mortgage, LLC now has the Home Equity Conversion Mortgage, HECM, for purchase loans. You are now able to use the proceeds from your reverse mortgage to purchase a new home. No more worrying about living in a home that is too large or if you will have to use your money to pay for repairs.
You can now purchase a new home that fits your daily needs. We want to tell you more about the program and how you can benefit from our new services.
Before you get started with looking for another residence be sure to speak with a Housing and Urban Development, HUD approved HECM counselor. They will assist you with understanding the financial requirements and the program details.
After you speak with a knowledgeable HUD approved HECM counselor, you may begin searching for your new primary residence. Remember to use any HECM loan you must occupy, fulltime, the residence which will be used as equity for your reverse mortgage. For a new home purchase with your HECM loan you must occupy your new home within 60 days after the closing date.
Your selected new home must have a certificate of occupancy on file with the proper local authority in your area prior to closing and your new property must be completed and ready to move-in. No in construction homes allowed.
You are not allowed to participate in the act of property flipping. This just means that you are not allowed to use your HECM loan to purchase a new home then resell it for a higher market rate. To ensure mature Americans are not using their HECM loans for property flipping, the Federal Housing Authority has mandated that you must reside in your new home for more than 90 days. If for any reason you feel you are unable to stay in the home after the 90 days, you will be allowed to sell your home but you must provide additional documentation validating the property value.
You new home must be purchased outright. You will not be allowed to have a monthly mortgage payment. This program does not allow you to use a bridge loan (gap financing) to finance you new home. Also there is no three day right of recession. It is important to choose the property you are comfortable with because once you close the house is yours.
Be sure your new home has met the specifications of the FHA because you are not allowed to purchase homes which are ineligible according to the FHA guidelines for HECM for purchase. Here are the additional benefits of the HECM for purchase home program:
Using the HECM loan program allows you to retain ownership of your new home. You are not required to sign over the deed or title to your new home. You keep it.
Your Medicaid and social security benefits are in no way affected by the use of this loan program. The purpose of the HECM programs is to give mature Americans supplemental income. Not decrease their income.
You are allowed to use the money as you feel. Once you have closed on your new home, use the remaining money, if any the way you want to.
As long as you live in your new home, you will not have to make any mortgage payments.
Understanding the HECM for home purchase program allows you the freedom purchase a home more suitable to your specific needs.
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