HECM For Purchase Exceptions to Remember


A Home Equity Conversion Mortgage (HECM), or reverse mortgage, allows homeowners age 62 and older to tap into their home’s equity. The funds can be used to supplement retirement income, travel or for any number of other purposes while allowing the homeowners to remain in the home as long as they like.

But, what about someone interested in downsizing their home or relocating to a new city? A 2009 expansion of the HECM program may be the answer.

HECM for Purchase

The HECM for Purchase opens a new avenue for seniors interested in using a reverse mortgage to purchase a home. Still designed for those ages 62 and up, the HECM for Purchase combines the benefits of a traditional reverse mortgage with a substantial down payment, allowing seniors to live in a new home that better suits their life without having to pay cash or make any regular monthly mortgage payments. Of course, the homeowner will still need to pay the property taxes, insurance and other homeowner expenses.

If lower out-of-pocket expenses for a new mortgage and increased purchasing power sound like an attractive combination, there are a few limitations to keep in mind before making any offers.

Property Requirements

The HECM for Purchase can only be used to buy single-family homes, FHA approved condos or properties with four units or less where the owner resides in one of the units. Newly constructed homes are acceptable, but a certificate of occupancy must be granted before the HECM can be completed. While this encompasses a lot of properties on the market, there will be some exceptions.

Running a bed-and-breakfast will require finding alternative financing, as they are specifically excluded. Likewise, buying into cooperative housing—apartment-style buildings where residents purchase shares of the corporation rather than actual real estate—is prohibited. Mobile or manufactured homes built before 1976 could not be purchased via HECM. However, new versions that meet HUD’s guidelines for safety and permanent foundations may qualify.

However, if you’re over 62 and have your sights set on a traditional home that meets the requirements, contact Melinda Hipp with Open Mortgage today to learn more about HECM for Purchase.

To find out more about how a Reverse Mortgage can work for you call Melinda Hipp , CRMP with Open Mortgage at 210-493-7332, email at
melindahipp@openmortgage.com or visit texasreverse.net to learn more.


More about Melinda Hipp and Open Mortgage -

Melinda Hipp is Branch Manager with Open Mortgage|San Antonio and specializes in working with senior homeowners 62 and over who would like to access the equity in their home through a Reverse Mortgage. She has handled hundreds of satisfied Reverse Mortgage clients over the past ten years with many raving fans. She and her team are dedicated to giving you boutique service, a quick closing and personalized customer service.

Melinda regularly provides training to local real estate professionals and holds the designation of MBA, CRMP (Certified Reverse Mortgage Professional) and CMC (Certified Mortgage Coach.) Melinda is also an active member of NRMLA (National Reverse Mortgage Lender’s Association). An avid golfer, Melinda was a charter member of the San Antonio Chapter of the Executive Women’s Golf Association. She is currently a member of the National Reverse Mortgage Lender’s Association, Women’s Council of Realtors, San Antonio Board of Realtors, CRS and a board member of Golf San Antonio.

Melinda Hipp, CRMP | NMLS #219085

1870 W. Bitters Rd., Ste. 202
San Antonio, TX 78248
Office: 210-493-7332
Toll Free: 844-265-5513


texasreverse.net | arizonareverse.net | floridareverse.net

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>