Page 1 - AAG031_HECM for Realtors Client Right Size

HELP YOUR CLIENT HECM for Purchase

right-size to a new home. Your client, a homeowner
Loan Example

age 65, sells their existing
home for $450,000.

Easy to Apply Purchase New Home
Improve Purchasing Your client finds a NEW
home for $300,000.
Power Use $175,740 as a down
Increase Sales payment.

Use $124,260 from a
HECM for Purchase loan
to complete new home.

Purchase a home with a HECM Loan +$175,740

The Home Equity Conversion Mortgage (HECM) for Purchase DOWN PAYMENT
Loan is a government-insured loan designed for people
62 and over, which allows the use of equity from the sale +$124,260
of a previous home, or other qualified sources to fund the HECM TO COMPLETE PURCHASE 1
purchase of their next home.
$300,000

Discover the HECM for Purchase Loan

The HECM for Purchase Loan, commonly known as a reverse $274,260 at your client’s
mortgage loan, is a government-insured loan that allows disposal and no monthly
mortgage payments.*
homeowners 62 and over to use the equity from the sale (*Borrower must continue
of a previous residence, or other qualified sources to buy to pay property taxes,
their next primary home in one transaction. Regardless of homeowner’s insurance, and
home maintenance costs.)
what happens to their home’s value, they make one, initial
investment or down payment towards the purchase and no 1 This example is based on the youngest
monthly mortgage payments. Borrowers remain responsible borrower age 65, Annual Percentage
Rate of 5.702%, home purchase price of
for paying property taxes, homeowner’s insurance and $300,000, IMIP of $6,000, origination fee
of $5,000, and other settlement costs of
otherwise complying with the loan terms. $2,440. 2017 HECM fixed as of 10/17/17.