Purchasing a Home with a Reverse Mortgage is the Perfect Way to Finance the Perfect Home for Your Retirement
Seniors Need Options
In the US, 19 million homes are owned by seniors 62 years of age or older. While some of these homes meet the needs of their owners during retirement, over the next 10 years it is estimated that more than 11 million senior adults will sell their home and relocate to a home that better suits their physical, financial, and emotional needs. Using an FHA-insured reverse mortgage to finance that purchase may be the solution for making the transition possible.
How It Started
In 1988, President Regan signed the National Housing Act. Section 255 of this landmark legislation included the regulations that govern the FHA Insured Home Equity Conversion Mortgage (HECM), known today as the Reverse Mortgage. This program provides seniors with a safe method by which they can monetize their home’s equity to help them remain in their homes and to supplement their financial needs during retirement. In July 2008 Congress amended the legislation so as to allow a reverse mortgage to be used to purchase a home.
More Options for Texans
Prior to 2014, due to certain Homestead laws, the HECM for home purchase program could not be utilized in Texas. In November 2013, Texas voters passed Proposition 5 which authorized an Amendment to the Texas Constitution that would make the HECM for home purchase program available to qualified Texas homebuyers. This website is devoted to helping senior homebuyers, their Realtors, family, and other financial advisors to better understand exactly how this program works and why this could be a great option for many of our fellow Texans.