You can buy a home that has everything you want…except a monthly mortgage payment.
An FHA-insured Home Equity Conversion Mortgage for Purchase (H4P) allows you to spend more of your retirement on what you want. With a H4P, you can purchase a home by combining a one-time investment of funds with loan proceeds from a HECM to complete the transaction. The home you are purchasing secures the loan. Some benefits to you:
Purchase a home that better fits your lifestyle need without the added financial burden.
Leverage your purchasing power and acquire the dream home that you thought seemed out of reach.
Retain your retirement funds for other more important lifestyle or unexpected future needs.
Unlike a traditional mortgage, there are no monthly mortgage payments, which helps boost your cash flow. You own the home as long as you live in it. The loan only comes due when you leave or sell the home, or if you fail to meet your responsibilities—which include maintaining the property, purchasing homeowners’ insurance, and paying your property taxes.
How much do you need for a down payment?
The matrix below demonstrates the increased home purchasing power gained by Americans (62-and-older) who use a H4P. To use the matrix, match your age (on top of the chart) with the desired home purchase price (on the left side). The number where the age and purchase price intersect is the approximate amount of down payment you will need at closing. The actual amount will vary based on the current interest rate.
This material is not provided by, nor was it approved by the Department of Housing & Urban Development (HUD) or by the Federal Housing Administration (FHA). It is not intended to be a substitute for legal, tax or financial advice. Consult with a qualified attorney, accountant or financial advisor for additional legal or tax advice.
*There are some circumstances that will cause the loan to mature and the balance to become due and payable. The borrower(s) must continue to pay for property taxes and insurance and maintain the property to meet HUD standards or risk default. Credit is subject to age, minimum income guidelines, credit history, and property qualifications. Program rates, fees, terms and conditions are not available in all states and subject to change.