Loans Built Just For Seniors
The Home Equity Conversion Mortgage or HECM for purchase loan provides for a one time down payment that enables you to buy a home for a little more than half the purchase price with no mortgage payments for life. HUD insured HECM Loan.
The Bridge Loan.
This no fee short term loan option is great for seniors wanting to buy a new home prior to selling an existing home. Use this no fee bridge loan from Cherry Creek Mortgage to bridge the two without throwing away money on unnecessary fees.
The Senior Line of Credit.
If you are over 62, close today on the new purchase or in your existing home with the HECM line of credit that is FHA insured and allows flexibility in payments or no payments. This line of credit provides guaranteed interest accrual at a rate three times what the bank pays in standard savings accounts today. It offers the same government insurance with no risk and all the flexibility of coming in and out of the line of credit over your lifetime.
The Retirement Loan.
The minimal down loan built just for seniors that allow you to buy a home and have a mortgage payment for essentially less than what you would pay for rent. The payment can be fixed in for life. It can give you the security of owning a home while putting as little as 3% down.
The Recasting Loan.
“Recasting,” or “re-amortization,” involves paying off a lump sum of the principal amount and asking to have the monthly payments reset according to the original interest rate and loan terms. This option is great for seniors that want to buy a home and when they sell an existing home pay down the mortgage to the monthly payment they want to, but not have additonal paperwork or hassle.
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“Loans Built just for seniors”
Home Equity Conversion Mortgage (HECM)
If you dream about a new home with modern design, amenities, and low maintenance, then you owe it to yourself to learn about a powerful alternative to using traditional financing or paying cash to purchase your next home.
Imagine moving into a new neighborhood close to friends and family, with walking paths, a clubhouse, and neighbors just like you...and doing all of this while retaining a large portion of your life savings.
You're about to discover a little-known strategy that middle income and affluent Boomers like you have been using since 2009 to purchase their dream home: The Home Equity Conversion Mortgage for Purchase loan program, or HECM Program for short.
With this no monthly mortgage payment option, you can double your purchasing power and significantly reduce your out-of-pocket expenses as compared to paying cash or securing traditional financing.
The H4P Program comes at a time when a lot of Boomers are trying to protect their nest egg and boost monthly income. If you've been secretly wanting to move into a new home that better meets your lifestyle plan, then your time has finally arrived!
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"No Payments For Life" brochure
Home Equity Conversion Mortgage Basics
Home Equity Conversion Mortgages are non-recourse loans that allow homeowners 62 years of age and older to convert home equity into tax-free cash (consult local tax advisor)
Some of the benefits include:
• Residual income approach similar to VA
• Credit based on willingness to pay
• NO monthly mortgage payments required
• Borrower must remain current on property taxes, homeowner’s insurance & HOA dues
• Borrowers will always retain title to the home
• Proceeds are tax-free (consult local tax advisor)
All borrowers on title must be at least 62 years of age
Borrowers must complete counseling from a HUD approved counseling agency
Borrowers must occupy the home as their primary residence (live in home at least 6 months of the year)
Borrowers must own the home
The HECM must be first mortgage, but can be used to pay off existing liens
A HECM Borrower:
• Does NOT give up title to their home
• The Lender DOES NOT take ownership of the house
• The Lender DOES NOT take the appreciation
• Does NOT incur debt that is passed onto their heirs (non-recourse loan)
• Borrowers can NEVER owe more than the value of their home at time of repayment
• Other assets will NEVER be used/required by the lender to satisfy repayment
• FHA mortgage insurance will pay any shortfall from sale
• Does NOT have to move or sell until they choose to do so(provided they comply with the terms of the loan)
• Does NOT have to be debt-free to qualify
• Does NOT always utilize all of their home’s equity with the reverse mortgage
• All remaining equity belongs to borrower or their estate
• Will NOT experience any impact on Social Security or Medicare benefits (always consult a trusted advisor)
• HECM loans are not as expensive as people think
• Closing costs are typical to “traditional” mortgages and can be financed