Home Keeper for Home Purchase

The Home Keeper for Home Purchase program enables seniors to obtain a Home Keeper mortgage in connection with the purchase of a new home - in a single transaction. The transaction reduces the out-of-pocket cash needed by the consumer to buy a new home, eliminates any new monthly mortgage payment, and helps the consumer keep more of the sales proceeds from their old house - or a larger amount of savings - to use for other purposes.

To provide a better illustration, let's say a 76-year-old woman sells her home for a $75,000 profit and wants to buy a new home in sunny Florida costing $115,000. To avoid a mortgage payment on the new house, she would need to pay $115,000 in cash. This means she would have to use the entire $75,000 from the sale of her first home, plus another $40,000 from her savings. If she doesn't have the $40,000, she couldn't buy the new house, unless she qualifies for a new home mortgage, which might be difficult and which in any event would require making monthly mortgage payments again.

Alternatively, the woman could purchase the new home outright, or nearly so, using money from a Home Keeper reverse mortgage, plus the sales proceeds from her old house.

This product might be used, for instance, by older homeowners who want to sell their old home and move closer to their children or to a warmer climate, or to move into a home that provides greater accessibility.

Home Keeper is a registered trademark of Fannie Mae.