pros and cons of reverse loans
Okay, what does “HECM” 4 Purchase mean? Is is some sort of mysterious formula for investing or making money? The general public is unfamiliar with this term as are most Realtors.
So what does it mean and why is it something that could be very useful and advantageous for a senior to know about? Its a type of mortgage that they can use to purchase a home or even a second home such as a vacation property.
And how would they do this?
Buy using funds from a reverse loan. As long as the borrowers are aged 62 or older and they have funds that could be used for a down payment on an a new property, they could possibly relocate to an area they have always wanted to live in or buy their dream home.
If you want to know more about this special loan program, please contact me for details and or I can provide you with information that is designed especially for you and your dream.
Within the last year newer and more affordable reverse loans have been created that allow the borrower more access to the equity in their home if it’s value exceeds 1MM. And these loans are without origination fees or the FHA MIP insurance, plus the homeowner can borrow up to 4 MM.