Author Topic: HECM for Purchase  (Read 1855 times)


  • Magnum Stache
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HECM for Purchase
« on: January 26, 2018, 08:45:44 AM »
Have any of you purchased a home and used a HECM for purchase?

I guess the way it works is that you must have a house for sale and you must have a house you want to purchase. So let's say each house is worth $300K, they give you something like half or more in a HECM mortgage and you put down the other half. You never have to pay a mortgage payment. Now let's say you sold your house and put down $150K and put the other $150K in the bank. Then rather than take money out of your IRA you take money out of the $150,000 from sale of house, for an example, $20K a year for 7.5 years then it will be gone. If you are 65 at the time you do this, the money would run out by the time you are 72.5 years old. At that point you would start dipping into IRA. You would be able to let your savings grow for 7.5 years longer.

The down side is that your house equity is gone. The good thing is that you never have to make a mortgage payment. Can anyone comment on this as a good or bad strategy for delaying withdrawals from IRA's? At age 70 you have to start taking RMD.