The FHA’s move to eliminate a prepayment penalty starting next year will relieve borrowers of a financial hit that’s entirely out of their control.
Did you know?
You can purchase a home using a reverse mortgage.
The Home Equity Conversion Program (HECM) for purchase is an innovation that helps seniors use the equity from the sale of their previous house to fund the purchase of their next home.
The HECM for Purchase is a Federal Housing Administration (FHA) insured home loan that allows seniors to use the equity from the sale of a previous residence to buy their next primary home in one transaction. Regardless of how long they live in the home or what happens to their home’s value, they only make one, initial investment (down payment) towards the purchase.