This is a program supported and insured by the U.S. Department of Housing and Urban Development (HUD). It basically allows you to buy a home and get a reverse mortgage at the same time.
•You can only apply for the program if you meet the following requirements:
•You are at least 62 years old or older
•You live in the home
•The home is your main residence
The advantages of getting an HECM for Purchase and Reverse Mortgage are obvious. For one, you no longer have to worry about shelling out money to cover the closing costs for two separate transactions. This is a 2-in-1 deal. So you save up on fees. When you’re living on a fixed income, every penny counts. This is an excellent way to keep your finances on track.
Buy a New Home
If you live in a 2-story home, not only will the upkeep be a pain, but the added costs of having to maintain the place can also take a chunk out of your budget. By using this loan to get rid of your old home and buy a new one, you can finally have the kind of property that fits you just right: smaller and much more appropriate to your needs and maintenance capabilities.
You can also use the funds to buy a home that’s closer to where the rest of your family is. Having a nearby support system makes a difference, especially when it comes to the level of care you receive.
However, not every situation calls for an HECM for purchase. You can simply go for the regular kind if there’s nothing wrong with where you live in now, and you’re definitely not moving in the next 10 years or so, says Investopedia. In the end, whatever HECM program you choose, make sure you examine all your options to be sure that the step you’re taking is the best one for you.