What's That You Say ? I can BUY a home using a reverse mortgage ( H4P ) !


What Is A H4P ?


It's a "HECM for Purchase" A HECM is a Home Equity Conversion Mortgage, commonly referred to as a reverse mortgage. It is a special type of loan that enables individuals 62 or older to convert some of their home’s equity into tax-free funds. Unlike traditional equity loans, you may receive payments instead of making them.


How Much Can Be Borrowed ?


The amount is based on a HUD formula that factors in the age of the youngest

homeowner, the interest rate, the lesser of the appraised value or the FHA lending

limit and the amount of any existing liens.


What Are The Interest Rate Options ?


Reverse mortgages offer both fixed and variable rate options.


Who Is Eligible ?


• Homeowner(s) who are at least 62 years of age and occupy the property as their

principal residence

• Eligible properties include single-family homes, FHA approved condominiums,

townhomes and 2 to 4 unit dwellings (borrower must occupy one unit as their primary residence)

• Limited income and credit requirements


What Are Some Of The Benefits ?


• The customer retains ownership and lives in their home as long as they wish, provided

all program requirements are met

• The customer is not required to pay a Principal and Interest ( P & I ) payment for as long

as they live in the house. They do have to continue to pay their homeowner insurance,

taxes and association fees.


How Can I Buy A Home Using A Reverse Mortgage ?


• Based on your age you may qualify for a loan amount between 45 % and 55% of the new home’s appraised value. You would have to put down the difference as a down payment.


• The process is very similar to buying using a more traditional type of mortgage








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