Buying a Home With a Reverse Mortgage: HECM for Purchase

Buying a home with a reverse mortgage example Below is a table illustrating an HECM for purchase example on a home after you completed the sale of your existing home. In this example, the proceeds from your home sale are $600,000. Depending on whether you are downsizing or upsizing, this is a simplified example of what you might expect. If downsizing If upsizing Cash on hand after home sale $600,000 $600,000 Purchase price of new home $500,000 $800,000 Down payment required to purchase new home $295,000 $470,000 Amount financed by Reverse Mortgage $205,000 $330,000 Cash remaining after purchase $305,000 $130,000 Unlock Your Equity and Buy Before You Sell Through our Buy Before You Sell program, HomeLight can help you unlock a portion of your equity upfront to put toward your next home. You can then make a strong offer on your next home with no home sale contingency. Why buy a home with a reverse mortgage? Here are some common scenarios when using a HECM for purchase might be considered a good solution: Your current house is more than what you need (downsizing) You want to upsize to allow room for incoming family Your current house may be too expensive to maintain You want to live i...