HECM Reverse Mortgage for
Home Purchase Calculator
With a home purchase, the HECM must be the only lien against your new home, you must occupy the home within 60 days from the closing date, it must be your principal residence, any construction must be completed (an occupancy certificate must be issued), co-ops and some manufactured homes are ineligible, and there must be no home flipping.

Proceeds from the HECM will be based on the lesser of the sales price or the appraised value of the home you are purchasing. And importantly, between the HECM proceeds and your own funds, enough money must be available to purchase the new home outright.

You may choose to provide a larger investment amount in order to retain a portion of the available HECM proceeds for future draws. This HECM 'Reserve' can be used for a line-of-credit or for monthly income. A HECM line-of-credit grows tax-free at the HECM's note rate plus half of one percent.

  Allowable funding sources                  Sources not allowed  
   Proceeds from a HECM reverse mortgage    Bridge loans  
   Your savings    Cash withdrawn from credit cards     
   Any funds from the sale of an existing home      Subordinate liens  
   Lenders must verify the source of all funds    Seller Financing  
         
To find the amount of funds you will need, answer these questions:
 
  Enter information about the home you are purchasing
  The lower of its purchase price or appraised value  
  Your new home's ZIP code?  Enter 5 digits, not ZIP+4
      Before proceeding, click the 'Find It' button >>                     
  State:  
  County:  
  Recording cost of the deed on your new home
        Estimated home purchase and loan costs vary by State and County
  Other closing costs associated with your home purchase
     Don't include costs of the HECM loan. Just extras on the purchase.
  Ernest money given to the home seller (if any)
  Next enter your birth date(s)
     Month   Day   Year  
  When were you born?  
     For example: type 5 for May.
  Month  Day Year  
  When was your spouse or co-owner born?        
     Leave blank if you will be the only owner.
Fields below are optional -- you can skip them and just click Calculate
  Will you be selling your current home before your home purchase?
  Expected selling price of your current home
  Expenses on the sale of your current home
     Our default is 7.0% like used in HECM disclosures. You can change it.
  Mortgage and lien payoffs on your current home?
  Leave the next box blank if you do not wish to setup a HECM reserve
  What is your desired HECM Reserve?  
     This can be for a line-of-credit that grows over time or for monthly income.
After making your entries, click  
 
The information being provided is an ESTIMATE ONLY. Interest rates and principal limits change weekly. This is not an offer, an application or a commitment to make a reverse mortgage to you. In order to be considered and qualified for a reverse mortgage, you must submit a completed reverse mortgage loan application.
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