[lincap]

Originally Posted by wendyquat

Just wondering if anyone has obtained a HECM reverse mortgage which is used to purchase a home rather than the traditional reverse mortgage where you tap the equity in your home. Wish I didn't have to consider any type of mortgage but might be necessary for us. I realize not all mortgage companies originate the HECMs. Thanks for you info. I can always count on good answers from you guys! Thanks

A reverse mortgage is a FHA insured loan for borrowers age 62 or older. There is a reverse mortgage for a purchase called a HECM for purchase loan. You will still have to have a downpayment and that could be up to 50% of your sales price depending on your age and the program you select. No mortgage payments but nothing in life is free so the interest you are not paying each month will accrue on the balance. That is interest accruing on interest. The balance of the loan will increase thru the years. Are they good or bad depends on your personal situation. Get all the information and review other options as well. Closing costs on a reverse mortgage can be high, even with the new HECM Saver programs.