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StyleCraft Blog

HECM Loans: How They’re Giving Active-Adult Homebuyers More Options

December 8, 2019

When we talk about our homes specifically designed with active-adult homebuyers in mind, we often remind you that they come included with the lifestyle and home design features that you’ve worked hard to earn. But every homebuyer’s situation is different, and sometimes the numbers don’t add up to make buying a new home the right decision, for right now. Hold that thought…

Through our partnership with preferred lender Mutual of Omaha Mortgage, we’re able to put our new construction homes within closer reach of homebuyers. That’s because of the HECM for Purchase Program, or H4P, which offers active-adults a loan that’s beneficial on so many levels.


Here are a few details about the HECM for Purchase Program:

  • Designed for homebuyers 62 and older
  • Must be used for a primary residence
  • Backed by the FHA (Federal Housing Administration)
  • May be used for single-family homes or townhomes

OK, now that you know the basics — how do you know if the program is right for you? One reason may be that you’re considering a move to your forever home, but that home’s price point exceeds your budget. Another popular reason is that you’re just tired of making a monthly mortgage payment — and you would rather use those funds to travel, pursue hobbies, or maybe restore that Classic Dodge Charger sitting in your garage.

It may sound too good to be true, but once you understand a bit more about how the HECM for Purchase Program works, you’ll quickly understand how it can help make these once far-fetched scenarios become your reality.

So, how exactly does the 62+ loan make your budget stretch? It’s because you’ll only make a single down payment for your new home, which is usually about 55–65% of the purchase price depending on that price and the homebuyer’s age.

All that’s left to pay are property taxes, insurance payments, HOA dues, and maintenance. While the home is still titled in the homebuyer’s name, a lender retains a financial interest. HECM for Purchase loans are not repaid until the borrower sells the home or a homeowner’s estate is reconciled.


The HECM for Purchase Program can open a world of possibilities for 62+ homebuyers, whether you’re wanting to move into the home of your dreams or you are simply seeking to elevate your lifestyle with supplemental income — without disrupting retirement or savings accounts.

We’re excited to make this offering possible through our partner, Mutual of Omaha Mortgage. If you’re interested in learning more about how you can use the HECM for Purchase Program in purchasing your new StyleCraft home, contact our team at 804.523.HOME!