Many people believe that buying a new home during retirement means dipping heavily into savings or settling for less. However, that’s not the only path available. Thanks to H4P loans, individuals aged 62 and older have a flexible, strategic option for homeownership without the pressure of monthly mortgage payments.
Understanding How H4P Loans Work
To start, H4P loans in Greenville SC —also known as Home Equity Conversion Mortgage for Purchase loans—allow eligible seniors to buy a home using a reverse mortgage. Unlike a traditional loan, this option doesn’t require monthly mortgage payments. Instead, as long as the borrower continues living in the home and keeps up with taxes, insurance, and maintenance, repayment can be deferred.
At the same time, this type of loan typically covers 30% to 50% of the home’s purchase price through a down payment. The remaining balance is financed through the H4P loan. Because of this setup, buyers can hold on to more of their retirement funds while still purchasing a home that fits their needs.
