HECM - For Purchase Loan

Home Buying without Mortgage Payments

If you are a homeowner 62 years or older, the Home Equity Conversion Mortgage (HECM) for Purchase loan may help you buy your next home without required monthly mortgage payments.2

The HECM for Purchase product 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 you live in the home or what happens to your home’s value, you only make one, initial investment (down payment) towards the purchase.
A HECM for Purchase loan can help increase purchasing power and flexibility when buying a primary residence. Many home buyers use the HECM for Purchase loan to:
  • • Right size to a smaller, lower maintenance home
  • • Buy a home closer to family or friends
  • • Lower their cost of living during retirement
  • • Enjoy carefree living in a senior housing community
Best of all, since monthly mortgage payments are not required, a HECM for Purchase loan may help preserve your hard-earned savings and improve cash flow. You will continue to own and maintain the title of your home for as long as the property remains your primary residence.

This material is not provided by, nor was it approved by the Department of Housing & Urban Development (HUD) or by the Federal Housing Administration (FHA).

1 This example is based on the youngest borrower, who is 68 years old, a fixed rate HECM for Purchase loan with an initial interest rate of 4.50%. It is based on a purchase price of $300,000, a mortgage insurance premium of $6,000 and other settlement costs of $4,673; amortized over 193 months, with total finance charges of $176,312.24 and an annual percentage rate of 5.00%. Interest rates may vary and the stated rate may change or not be available at the time of loan commitment.

2 The borrower’s current mortgage, if any, must be paid off using the proceeds from your HECM loan. The borrower must still live in the home as their primary residence, continue to pay required property taxes, homeowners insurance, and maintain the home according to FHA requirements. Failure to meet these requirements can trigger a loan default that may result in foreclosure.

Provident Bank is an approved lender for HUD/FHA, CalHFA, VA, Fannie Mae and Freddie Mac. In authoring this media, Provident Bank Mortgage is not acting on behalf of or at the direction of HUD/ Federal Housing Administration, the Federal Government, the Department of Veteran Affairs, Fannie Mae or Freddie Mac. This is not an offer for an extension of credit or a commitment to lend. All applications are subject to borrower and property underwriting approval. Not all applicants will qualify. All loan products and terms are subject to change without notice. Provident Bank Mortgage is a division of Provident Savings Bank, F.S.B., NMLS #449980. The Corporate Office for Provident Bank Mortgage is located at 3756 Central Avenue, Riverside, CA 92506 (951) 686-6060.