REVERSE MORTGAGE FOR PURCHASE LOAN (H4P)
The Homebuying Loan Made for Fixed Incomes
Many retirees would love to move, but think they either would have to downsize, drain their savings or start a new mortgage. The Home Equity Conversion Mortgage (HECM) for Purchase loan (H4P) can boost your homebuying power while protecting your retirement assets. Let Rob and the Kanyur Reverse Team show you how it works.
How the H4P Works
Down Payment
The product allows you to combine a down payment from your own funds (e.g., proceeds from the sale of your current home) with the proceeds from the HECM for Purchase (H4P) loan to complete the purchase. The amount that you would be required to put down is roughly 40%-60% percent of the sales price of the home you are buying. The required down payment is determined by the age of the youngest borrower the current interest rates, and the purchase price of the new home.
Repayment Flexibility
You have the option to repay as much or as little of the loan balance each month as you would like, or you can make no monthly mortgages payments at all. The FHA guarantees that as long as you meet your loan obligations (which include maintaining the home and paying for property taxes and homeowners insurance), no repayment of the loan is required until the last borrower moves out or passes away. When the loan becomes due, you or your estate has up to 12 months to repay the loan balance, which is typically achieved by selling the home.
Key Benefits
An H4P Can Potentially Help You To:
- Increase your purchasing power to buy the home you really want
- Free up cash flow — you will not be obligated to make monthly mortgage payments. You still must maintain the home and pay taxes and homeowners insurance
- Extend the life of your productive retirement assets*
- Qualify for a mortgage in retirement — there are minimal income and credit requirements
Eligibility
- You must be 62 or older
- You must meet minimal credit and property requirements
- You must receive reverse mortgage counseling from a HUD-approved counseling agency
- You must not be delinquent on any federal debt
- Home must be a primary residence
- Property must be a single-family home, a 2- to 4-unit dwelling or an FHA-approved condo
Increase Your Purchasing Power
With a H4P loan, you sell your existing home. You then take out a reverse mortgage loan on the home you wish to purchase and combine that with the proceeds of your home sale to cover the down payment, along with additional funds if necessary.
Estimated Cash From Borrower*
Age of Youngest Borrower
Faded portion of bar represents the estimated Reverse Mortgage funds.
This information is provided as a guideline and does not reflect the final outcome for any particular homebuyer or property. The actual Reverse Mortgage available funds are based on current interest rates, current charges associated with loan, borrower date of birth (or non-borrowing spouse, if applicable), the property sales price and standard closing cost. Interest rates and loan fees are subject to change without notice. Following the closing of the home purchase, no further principal or interest payments will be required as long as one borrower occupies the home as their primary residence and adheres to all HUD guidelines of loan. Borrower must remain current on property taxes, homeowner’s insurance (and homeowner association dues, if applicable), and home must be maintained.
Who’s a Great Fit for a Reverse for Purchase Loan?
The following are just a couple examples of people who found the living situation that’s best for their golden years. Houses and stories are for illustration purposes only. Houses may not be available for purchase.
Moving to the Perfect Neighborhood
James and Mary, 62 and 59, want to move to a newly constructed home in an area that’s ideal for retirees. The problem is that home values are close to double in the new community compared to where they live currently. With a reverse mortgage for purchase, James and Mary can make their move and never have to make monthly mortgage payments again. They just have to pay property expenses and maintain the home.
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$600,000 Home Sale Value
James and Mary currently own this home.
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$800,000 Home Value
With a reverse mortgage for purchase, the proceeds from their old home could enable them to buy their much more expensive dream home.
Planning for a Legacy*
Cindy, 62, is selling her current home that she owns free and clear. She wants a home of a similar value that is closer to her grandchildren—but she also wants to set up an annuity for her grandchildren to help pay for college.* A reverse mortgage can allow her to purchase the home she wants and have plenty of money left over from the sale of her current house.
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$800,000 Home Sale Value
Cindy currently owns this home.
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$650,000 Home Value
With a reverse mortgage for purchase, Cindy could sell her current house for $800,000 and buy a $650,000 house. She would have ~$360,000 remaining to use. $170,000 could go to an annuity for her grandkids and $190,000 could be invested by her financial advisor.* She would also never have to make monthly mortgage payments again. She would just have to take care of property charges like taxes, insurance and upkeep.
Rob Kanyur and his team are personable, professional and very good at what they do. Our reverse mortgage went so smoothly. We were kept informed during the whole process which was an amazingly short amount of time! I highly recommend Rob + Fairway.
Rob Kanyur is professional and thorough in his presentation of the benefits of a reverse mortgage. He answered all of our questions so we were fully informed before committing to a reverse mortgage. We are delighted with how a reverse mortgage has served our financial needs. We highly recommend Rob Kanyur and Fairway Independent Mortgage Corporation.
Rob and his team deserve high praise. I was kept in the loop at all times. Any questions were answered promptly and patiently. (I had a lot of them.) Excellent customer service! The team works very efficiently, no hick-ups or delays. Even after closing, Rob was and still is available to help/clarify.I whole-heartedly recommend Rob Kanyur to anyone, who is searching for the best man and team for the job.Heidi S.
My husband and I live in Prescott, AZ. Rob Kanyur's company was highly recommended to us, for good reason. We took out a Reverse Mortgage in 2019 with Rob, and updated it in August 2021 to reflect the increased value of our home and low interest rates. Both transactions were quick and painless and handled professionally by Rob and his excellent team. We highly recommend Ron Kanyur and his team at Fairway Mortgage.
I have worked in and around the real estate business for almost 30 years. I have had the experience of watching numerous mortgage brokers as they provided their services for their clients. During this time I have had specific experience working with several reverse mortgage brokers.When it came time for my wife and I to consider a reverse mortgage, I knew I didn't want one of those brokers I had known in the past. We chose to do our reverse mortgage with Rob after receiving a referral from a mortgage broker friend, who I know to be very competent. She spoke well of Rob, both as a person and as a broker. We soon learned that Rob has expert knowledge of reverse mortgage. He is, by far, the best reverse mortgage broker I have ever had the privilege of knowing.If you are considering a reverse mortgage, Rob is the broker you want to do business with. He and his team will insure that your transaction will be done correctly and in a timely manner.
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*This advertisement does not constitute tax or financial advice. Please consult a tax and/or financial advisor regarding your specific situation.