New home. Better lifestyle. No monthly payment.
HomePlus is a home equity conversion mortgage (HECM) to purchase your new home. HECM is the only type of reverse mortgage insured by the U.S. Federal Government to purchase a new home. Using HomePlus you can purchase your brand new home without the burden of monthly payments*.
Click here for the latest news conversation on Home Equity Conversion Mortgages.
Not only do most HomePlus participants avoid dipping into savings or investments to buy their new home, many of them actually add to their liquid savings by moving from their existing home to a brand new home in one of our Pennsylvania retirement communities.
Click here and listen to homeowners, Pat and Norm share their thoughts on using the HomePlus program.
In 2009, Federal Housing Administration established the “reverse for purchase” program to help 62+ residents purchase a new home using a reverse mortgage on the new home.
HomePlus was designed to help homebuyers aged 62 and better implement retirement planning and asset management strategies as part of their new home purchase.
Contact a New Home Counselor in one of our retirement living communities today to see if HomePlus for Purchase is right for you.
When our existing home wasn’t worth as much as we hoped, we thought we wouldn’t be able to make the move. But HomePlus made the difference; we could buy our new home without the burden of a monthly payment. - Norm and Pat Kratfel
Frequently Asked Questions about HomePlus Reverse Mortgages
Use the + sign to reveal the answer to your specific question, or choose “open all” to see a list of frequently asked questions at one time.
What is a reverse mortgage?
Can I use a reverse mortgage to purchase a brand new home?
How much can I borrow against my new home?
Will I qualify for FHA's HECM reverse for purchase mortgage?
When does my loan become due and payable?
- You do not pay property taxes or hazard insurance or violate other obligations.
- You permanently move to a new principal residence.
- You, or the last borrower, fail to live in the home for 12 months in a row. An example of this situation would be if you (or the last borrower) were to have a 12-month or longer stay in a nursing home.
- You allow the property to deteriorate and do not make necessary repairs.
Will I still have an estate that I can leave to my heirs?
Whats the difference between a reverse mortgage and a home equity loan?
With a traditional second mortgage, or a home equity line of credit, you must have sufficient income versus debt ratio to qualify for the loan, and you are required to make monthly mortgage payments. The reverse mortgage is different in that it pays you, and is available regardless of your current income. The amount you can borrow depends on your age, the current interest rate, and the appraised value of your home, sales price or FHA's mortgage limits, whichever is less. Generally, the more valuable your home is, the older you are, the lower the interest, the more you may borrow.
With a HECM, you don't make monthly principal and interest payments, the lender pays you according to the payment plan you select. Like all homeowners, you still are required to pay your real estate taxes, insurance and other conventional payments like utilities. With an FHA HECM you cannot be foreclosed or forced to vacate your house because you "missed your mortgage payment."
Can I outlive a reverse mortgage?
What happens if I want to sell my home & it’s worth less than the loan amount?
* Restrictions may apply. Speak with your New Home Counselor for details.