You can use a reverse mortgage to buy your next home, not just tap equity in your current one. Here is how it works.
How does a reverse mortgage for purchase work?
A HECM for Purchase lets a buyer 62 or older combine a one-time down payment with reverse mortgage proceeds to buy a new primary residence in a single transaction, with no monthly mortgage payments afterward. The required down payment, typically 45% to 70% of the purchase price, depends on the youngest buyer's age and current rates; older buyers put down less. The reverse mortgage covers the rest. This lets seniors downsize, move closer to family, or buy an age-friendly home while preserving cash. Call 1-800-MEDIGAP to see your required down payment.
Why use a reverse mortgage to buy a home?
Buyers use a HECM for Purchase to acquire a more suitable home while keeping more savings liquid and avoiding a monthly mortgage payment that would strain a fixed income. Instead of paying all cash and depleting reserves, or taking a traditional mortgage with monthly payments, you bridge the gap with reverse mortgage funds. It is popular for relocating near family, moving to a single-story or low-maintenance home, or right-sizing in retirement. You still pay taxes, insurance, and upkeep. A specialist at 1-800-MEDIGAP can model the numbers for your target home.