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\n <\/div>\n \n What's Your Home Worth Now?<\/h3>\n
If you are considering selling your home to retire or downsize, find out what your property might be worth. Enter a few details about your house and we’ll provide you with a preliminary estimate of home value in less than two minutes. It can be a helpful starting point as you plan your next move.<\/p>\n \n
Editor\u2019s note: This post is for educational purposes and is not intended to be construed as financial or tax advice. HomeLight encourages you to reach out to an advisor.<\/em><\/p>\n A reverse mortgage<\/a> is a loan typically available to homeowners aged 62 and older that allows them to convert part of the equity in their home into cash. Unlike a traditional mortgage where you make monthly payments to the lender, with a reverse mortgage, the lender pays you. The loan is repaid when the homeowner sells the house, moves out permanently, or passes away. Reverse mortgages are designed to help retirees with limited income use the accumulated wealth in their homes to cover basic living expenses and healthcare costs.<\/p>\n With a reverse mortgage, the homeowner continues to own and live in the home while receiving payments based on the home\u2019s equity. The amount you can borrow depends on several factors, including your age, the home’s value, and current interest rates. The loan balance increases over time as interest and fees are added, but you don\u2019t have to repay it until you no longer live in the home.<\/p>\n Reverse mortgages are non-recourse loans<\/a>, meaning that you will never owe more than the home is worth. If, for any reason, the home sells for less than what is owed on the loan, FHA insurance covers the gap. In such a case, neither the borrower nor their heirs will be responsible for the difference or face any negative credit impact.<\/p>\n Buying a home with a reverse mortgage, also known as a Home Equity Conversion Mortgage (HECM) for Purchase, allows seniors to buy a new primary residence<\/a> without the burden of monthly mortgage payments. You use the proceeds from the reverse mortgage to cover part of the purchase price, and you contribute the remaining funds from your own resources, such as savings or the sale of your previous home.<\/p>\n In most cases, the older you are, the more loan proceeds you are eligible to receive when you apply for an HECM for purchase.<\/p>\n As with a retire-in-place reverse mortgage, you still own the home until you sell it or it\u2019s deeded to an heir. This option is ideal for those looking to downsize, move closer to family, or find a home that better suits their needs in retirement.<\/p>\n Below is an example of what the process might look like when buying a home with a reverse mortgage. For many seniors using HECM for purchase, this process rolls forward after they have sold their current home.<\/p>\nWhat is a reverse mortgage?<\/h2>\n
How does a reverse mortgage work?<\/h2>\n
How does buying a home with a reverse mortgage work?<\/h2>\n
What\u2019s the process to buy a home with a reverse mortgage?<\/h2>\n