The answer is yes, a HECM reverse mortgages can be a great idea for the right borrower. And the HECM can be used to purchase and or refinance property.
The HECM or Home Equity Conversion Mortgage is FHA’s reverse mortgage program. The program enables borrowers to withdraw some of the equity in their home. The HECM can also be used to purchase a property.
In order to be eligible for the HECM, FHA requires that borrowers be 62 years of age or older. The home being financed must also be their primary residence. In most cases there is little no credit or income required. And the home must be a single family home or a 2-4 unit home with one unit occupied by the borrower.
And despite all the misconceptions of what happens to the home and or its equity when the home is sold or is no longer being used, all proceeds beyond the principal amount owed belong to the borrower, their spouse or estate. This means any remaining equity can be transferred to their heirs. No debt is passed along to the estate or heirs even if the home is valued less the owing balance of the loan.
If you have questions or would like to see if you qualify for the HECM please contact me directly at YourFinancingGuy.com