Galen Call Reverse Mortgage Specialist Monterey California

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Galen Call May 26, 2021

Can You Use a Reverse Mortgage to PURCHASE Your Next Home? Yes, and Here’s How

The HECM for Purchase program was established in 2008. Before it was created a homeowner had to relocate and purchase a home with a traditional mortgage, establish residency, and then refinance the home with a HECM if desired.  This lengthy process would require two sets of closing costs and an extensive waiting period. Since 2008 homeowners do not have to experience the time-consuming process instead, they can purchase a residence using a HECM with only one closing event and no waiting period.

When would it be a good option?
Often older adults want to downsize, move closer to children, move nearer to a city or better health care services, or leave the city and move to the country. Sometimes the home they are in does not have the required improvements necessary for aging in place, or it is a 2-story and single-level floor plan is preferred.  Often the desire to live in a retirement community is a good choice. There are endless reasons why older adults choose to move to a new home.

How does it work? To qualify the homeowner must be 62 yrs. or older and a lender review can determine how much they can borrow ( called the principal limit). Then a significant investment may be required to satisfy the remainder of the sales price and closing costs. A homeowner might be selling their home to move to the next. Some of the sale proceeds are used for the down payment of a new home and the HECM is used as the purchase money.  For example, a $600,000 house is purchased with a $250,000 down payment and the balance is your reverse mortgage loan with no monthly payments.

  • HECM for Purchase loans are only available for a borrower’s primary residence which must be occupied within 60 days.
  • HECM counseling is required prior to application.
  • A sales contract must be fully executed before a loan application is taken.
  • The seller can pay some closing costs but there are restrictions. Speak with your CRMP professional.
  • If the borrower plans to retain the home they are leaving, they must document that they can pay both the current and new home property charges.

To learn more about reverse mortgages, contact your local certified Reverse Mortgage Professional  (CRMP) for guidance and expertise.

Filed Under: Reverse Mortgages Tagged With: HECM, New Home, reverse mortgage

About Galen Call

Galen Call is a Certified Reverse Mortgage Professional (CRMP) in Monterey, California. She manages the Reverse Mortgage Division at TreeHouse Mortgage Group, a Division of American Pacific Mortgage Corporation (CALDRE #01215943 | NMLS# 1850). Galen can be reached at 831-645-1164 or by email.

Galen has been originating reverse mortgage loans since 2006 and active in the mortgage lending industry since 2003. She helps clients aged 62 and older with Home Equity Conversion Mortgages (HECM) and proprietary jumbo reverse mortgage loans. Galen brings a proactive and collaborative approach to reverse mortgage lending.

GALEN CALL
Manager, Reverse Mortgage Division
American Pacific Mortgage Corporation
dba TreeHouse Mortgage Group
Call Today: 831-645-1164
Fax: 831-643-1161
Galen@TreeHouseMortgage.com
NMLS #226129 | DRE #00908338
APMC DRE #01215943 | APMC NMLS #1850

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Copyright © 2021 American Pacific Mortgage Corporation. For informational purposes only. No guarantee of accuracy is expressed or implied. Programs shown may not include all options or pricing structures. Rates, terms, programs and underwriting policies subject to change without notice. This is not an offer to extend credit or a commitment to lend. All loans subject to underwriting approval. Some products may not be available in all states and restrictions may apply. Equal Housing Opportunity.

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