HECM For Purchasing A Second Home

second home frisco tx

If you have heard about reverse mortgages, you might be more familiar with their ability to help boost a retirement account, but there are other advantages to this kind of loan. Reverse mortgages help you to convert the home equity in your current home into cash that you can use for a variety of purposes, from providing much-needed financial relief to being an avenue for new purchases, including a second home.

At Family Home Loan Texas in Frisco, TX, we understand the possibilities that can come with more financial freedom. With an HECM loan, people who have reached the age of 62 have access to an additional tool in their toolbelt. By converting your home equity into capital that you can actually use, you can even purchase a second home, given that it does not become your primary residence. To find out more about reverse mortgages and how they may be able to help you in this new phase of life, give us a call!

What Is A HECM Loan Reverse Mortgage?

If you have been hearing about reverse mortgages, it is important to fully understand how they operate. There are many myths and misconceptions about these loans, and talking with your financial advisor can be a great step. Reverse mortgages help those who have reached the age of 62 to convert their home equity into cash, which can be a helpful way to increase a retirement account.

With a HECM loan, you have access to a form of reverse mortgage that is insured by the Federal Housing Administration. The amount that you can borrow depends on the appraisal value of your home, and there are limits imposed by the FHA. Unlike traditional home loans, you do not need to make a monthly payment, and instead, you can pay it off with the proceeds from the sale of a house.

HECM Loans Can Even Be Used To Buy a Second Home

Reverse mortgages have historically been a way to achieve a little more flexibility in retirement, but there are more possibilities available with these types of loans. For example, one of the most exciting ways that seniors are using HECM loans is to purchase a second home!

When someone obtains a reverse mortgage for this purpose, it is commonly known as a “HECM for Purchase” or “Reverse for Purchase” loan. By taking the loan capital and using it for a down payment on an additional residence, you can have a new avenue for investment or a place closer to your grandchildren, depending on your needs.

Learn More About Reverse Mortgages With FHL Texas

HECM loans provide a federally insured reverse mortgage option, and these are bringing new possibilities to those who have reached the age of 62. To find out more, talk with our team by calling FHL Texas at (214)447-7575!