how hecms work

For Purchase Loan Closing Costs

The HECM For Purchase program could make it possible for you to relocate and live closer to your family or downsize to a home that better fits your current and future needs. What charges should you expect to pay if you use this HECM program?

  1. The same costs you’d normally have if you buy or sell a home
  2. The same reverse mortgage fees that you pay for other HECM programs
  3. Both of the above

“C” is correct. The cash you use to make up the difference between the purchase and the available HECM funds may come from savings or investments, a retirement account, proceeds from the sale of other residence or other property, an insurance settlement, inheritance, or gift from a family member (no strings attached), or a grant from a nonprofit agency.