A HECM reverse mortgage for purchase is government-insured and requires only a minimal income check, with no monthly payments for life. You need a substantial down payment to build equity, but once approved, you stay cash-flow positive in retirement while covering property taxes and insurance.
HECM, which is the Home Equity Conversion Mortgage, is the government-insured reverse mortgage program. The reverse for purchase, we check a little bit of income, credit scores are not really required. We're really making sure that you have the ability to stay in this home long-term and cover your ongoing property expenses like taxes, insurance. The biggest difference between a traditional purchase loan and a reverse mortgage is that on a reverse mortgage for purchase, you don't have a mortgage payment for the rest of your life. So you buy that house, and now you're mortgage payment free for life. And one of the biggest differences is your commitment to the down payment. You have to create the equity position required. So that is a big difference. On a traditional mortgage, you can get those for 5-10% down, but you're making payments for the rest of your life. So this is the biggest takeaway, is that this product allows you to stay liquid in your retirement and still get the property that you're looking for without having the burden of taking on
