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In the videos below, you’ll meet two past homeowners who purchased a $500,000 home with a one-time payment (at closing) of $330,000 and will never make a monthly mortgage payment. You read that right – and nearly 25% of our homeowners have used the Home Equity Conversion Mortgage to purchase – and own – one of our maintenance-free homes.

Those who have served America in the Armed Forces deserve special benefits when it comes to achieving the American Dream. VA loans, with a $0 down payment and other lifetime benefits, are an option for many of our buyers.

HECM Testimonial

HECM In A Nutshell

The HECM for Purchase program is an age-based mortgage insured by the FHA for folks aged 62 and older. Unlike a traditional mortgage, monthly payments are deferred and the loan balance increases over time. Because the loan is insured by the FHA, neither the borrower(s) nor their heirs are personally liable for the debt.

So what does all that really mean? It’s actually very simple! Let’s say you use a HECM to purchase your dream home and decide to move in 10 years. When you sell your home you will receive 100% of the net proceeds after paying off the loan balance at the time of the sale. This is exactly how a traditional mortgage works.

The primary benefit of using a HECM comes into play during your living years in the fact that you are not paying a monthly payment to the mortgage company, thereby increasing your monthly cash flow.

If your loan is greater than the value of your home when you die, a HECM mandates that neither you nor your heirs are personally liable to cover the difference if your home is sold for a loss.

VA Loan In A Nutshell

The VA helps active-duty service members, veterans, and eligible surviving spouses to become homeowners. While VA Loans are provided by private lenders, such as banks and mortgage companies, the VA guarantees a portion of the loan, enabling the lender to provide you with more favorable terms. Your lender will set the mortgage rate and discount points, but, in general, the interest rates are lower relative to conventional loans. The amount a lender will approve will depend on financial history, down payment, and credit score. Benefits of a VA loan may include a $0 down payment, competitively low rates, low closing costs, no PMI, and a lifetime benefit.

Anyone that has had 90 days of active duty may qualify for a VA Loan. The Certificate of Eligibility can be retrieved by most lenders within a few minutes with the basic information on any veteran.

Many veterans think it’s complicated to apply for or qualify for a VA Loan. But as long as you have decent credit, enough income, and a valid COE from the VA, you should have no problem qualifying.

In a traditional mortgage scenario your heirs would be forced to sell the home at a loss and cover the difference. The terms of a HECM program mandates that neither you nor your heirs are personally liable to cover the difference if your home is sold for a loss. Simply put, it’s not your problem and no one is coming after your estate for a settlement.

Let’s now take a look at a special Matrix that will give you a snapshot of what’s possible for you using a HECM based on your age and purchase price of your new home…

Using the Matrix, the table, match your current age with one of the ages listed along the top row of the chart. For example, let’s say you are currently 75.

If your age is not listed then you can round to the nearest age listed. The next step is to find the expected purchase price of your new home listed along the left hand side of the Matrix and round to the nearest price.

So for this example let’s use a purchase price of $450,000 and an age of 75. You can see that you would only be required to bring a down payment of $285,390 to closing and NEVER make another monthly mortgage payment!

Get The Financial Help That Fits Your Lifestyle

HECM In A Nutshell

VA Loan In A Nutshell

Get The Financial Help
That Fits Your Lifestyle