Page 1 - AAG075_H4P Reference Guide for Realtors

HECM for Purchase Reference Guide

Realtors & Sellers

Sales Contract Helpful Hints
4 Seller must complete all FHA-required repairs prior to 4 Value is the lesser of sales price, appraised value or FHA
closing Lending Limit ($679,650 as of 1/1/18)

4 Signed copy of fully executed contract – all pages 4 Must occupy home within 60 days of funding
4 Amendatory Clause and Real Estate Certification • “New Construction” - Builder’s rep to get closing
documents - signed by seller, borrower and Real Estate statement from closed sales and give to the appraiser.
agent(s) Since most builders do not use MLS the appraiser will
need these for the appraisal.
4 Seller paid fees may be allowed if common and
customary (see chart on reverse side)

4 No personal property can be included

4 No borrowed funds – even if secured
4 No subordinate liens

Property Types

4 One to four family, townhomes, planned unit
development (PUDs), manufactured homes (see next
bullet point) & FHA-approved condos

4 Ineligible property – co-ops, manufactured homes
produced prior to January 1, 1990, manufactured homes
that were installed or occupied previously at another site
or location

4 Unique properties accepted on a case by case basis

4 99-year leasehold – lease must not mature until 50 years
after the youngest borrower’s 150th birthday

These materials are not for distribution to consumers.

Please see your AAG representative for consumer
information.

Tom Selleck
AAG Paid Spokesperson