• Question
  • Reverse Mortgage used to purchase a home

    Asked by someone from Indianapolis, IN on 7/12/2017

    I am interested in using a HECM to purchase a new home. But I want to know if this is a smart thing to do and I am interested in what the equity position would look like say 10 yrs after the purchase

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  • Categories: Reverse Mortgages, Reverse Mortgage for Purchase

Answers

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  • Steve 

    Steve 
    NewRetirement

    San Francisco, CA

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  • Hi,

    Here's a recent article on the HECM for Purchase program: https://www.newretirement.com/retirement/use-reverse-mortgage-purchase-new-home/

    You can use this tool to help consider whether a reverse mortgage might be good for your situation: https://www.newretirement.com/reverse-mortgage-suitability-test.aspx

    Note - it is a big decision and you should consider it carefully - you may want to consult with a fee only financial advisor who understands the program and will act as your fiduciary (put your financial interests first).

    You can also build and model your own retirement plan including options around how to use home equity for free here: https://www.newretirement.com/retirement-calculator/f1b.aspx?

    Hope this is helpful.




  • Login to rate this answer:   Answered on 7/13/2017
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.