Welcome to the NCRealtyGuy.com Blog

2019-10-24 14:52:57
What the heck is a HECM?

A HECM, or Home Equity Conversion Mortgage for purchase, may help you buy your next home without required monthly mortgage payments.  Sound too good to be true?  It's not.  A HECM for purchase is a reverse mortgage insured by the Federal Housing Administration (FHA).  That means it's the only one insured by the U.S. Federal Government. It was introduced by the FHA in 2009.

Who is eligible?
Youngest borrower must be at least age 62.
* Occupy the property as a primary residence.
* Not be delinquent on any federal debt.
* Have the ability to pay for ongoing charges like taxes and insurance, HOA fees, etc.
* Participate in a counseling session with a HUD-certified HECM counselor.

How can this program help you?
It allows you to use the equity from the previous sale of your home and purchase a new one, using  the HECM for purchase.  The great part is the amount you'll need to close typically ranges from 47% to 65% of the purchase price, depending on your age and other factors, including interest rates.  Then you pocket the rest, potentially allowing you to use the cash for additional savings or retirement.  You are not required to make any mortgage payments after you close.

Think about that.  If eligible, then you can buy your next home- paying a fraction of the purchase price.  You own the home, make NO mortgage payments, maintain ALL the rights of home ownership, and preserve capital.

What types of properties can I purchase?
* Single-family residence
* Planned Unit Development
* FHA-approved manufactured home
* FHA-approved condo.

Will my children lose their inheritance if I take out a HECM?
Your heirs will not be responsible for any debt because this is a non-recourse loan.  If there is equity in the home then your heirs are entitled to the equity after they sell the home and pay off the HECM balance.

Will my surviving spouse lose the home?
As long as he/she is on the HECM loan as a co-borrower or qualified non-borrowing spouse they may live in the home as their primary residence for the remainder of their life.

Keep in mind HECM's are not available in every state.  They are available in North Carolina.  Rules are many and can change.  I recommend you speak with a HECM lender, attorney and tax advisor before jumping head-first into this program.  I'm not any of the above! 

A HECM for purchase may be something you did not know existed or misunderstood.  My hope is now you can take this concept and see if it's right for you, and determine if it has a part to play in your retirement plan.

If you would like more information, then we can set up a time for a call or face-to-face meeting.  Get on my schedule here.

Blog Archive
2020-02-19 14:16:45
What Clients Say about Matt Morano

2020-02-14 09:14:26
How To Avoid Wire Fraud

2020-01-28 10:06:21
What in the world are RPOADS and MOG?

2020-01-21 09:00:46
Why Should I Sign an Exclusive Buyer's Agency Agreement?

2020-01-07 14:03:19
2019 Lake Norman Sales Report

2019-12-17 13:46:52
Video Tours of New Homes in Mooresville, NC

2019-12-14 10:57:17
Video Tours of New Homes in Huntersville, NC

2019-12-05 14:29:04
November 2019 New Home Sales Report

2019-11-23 15:09:52
What is a due diligence fee and an earnest money deposit?

2019-11-12 20:50:53
October 2019 Lake Norman Home Sales

2019-10-28 21:05:33
Understanding a Home Appraisal

2019-10-24 14:54:14
3 Things to Know about Buying New Construction

2019-10-24 14:52:57
What the heck is a HECM?

2019-10-08 09:23:58
September 2019 Lake Norman Home Sales

2019-10-07 15:40:28
The Ultimate Guide to Title Insurance

2019-10-07 13:52:50
What to expect from your home inspection.

2019-09-28 10:49:46
Why you should get pre-approved for a mortgage.

2019-09-27 10:19:58
Factoring Schools Into Your Home Buying Decision

2019-09-12 13:51:28
Shopping for a Lender

2019-09-12 12:07:23
3 Common Home Buying Myths

2019-09-12 12:06:58
Writing a Strong Offer

2019-09-12 12:04:47
Top Ten Ways to Scare Away Buyers

Comment on this Article

Your Name:
Your Email:
Verify:  Please enter the numbers shown to help eliminate spam.