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You hold the title to the home, just like a standard mortgage.
You may be able to afford a more accessible or higher-end home than cash alone would allow. 🛠️ How It Works reverse mortgage to buy new home
You use proceeds from the sale of your old home or your savings to pay about 45% to 70% of the new home’s price. Loan Amount: The HECM loan covers the remaining balance. You hold the title to the home, just
You aren’t required to make monthly mortgage payments (though you must pay taxes and insurance). Loan Amount: The HECM loan covers the remaining balance
If you are away for more than 12 consecutive months (e.g., in a healthcare facility), the loan becomes due.
You must complete an HUD-approved counseling session before applying. ⚠️ Important Considerations
You must pay all property taxes, homeowners insurance, and HOA fees .