Page 5 - AAG126_HECM for Purchase for Realtors Booklet

How Do Buyers Qualify?

Qualifications for a HECM for Purchase reverse mortgage loan
are based on these important factors:

AGE: You must be age 62 or older (a non-borrowing
spouse may be under age 62)

RESIDENCE: Your new home must be your primary
residence (borrowers must occupy property within 60
days of closing)

DOWN PAYMENT: You must have a sufficient down
payment to purchase the new home

The borrower(s) must also meet the financial requirements
of the HECM program. The loan amount is based on the age
of the youngest borrower or eligible non-borrowing spouse,
prevailing interest rates, and the value of the home you wish to
purchase.

EXAMPLE
HECM for Purchase Loan

Your client, a homeowner age 65, sells
their existing home for $450,000.

ONE TWO THREE
Purchase a New Home +$176,276 $273,724 at your
Your client finds a NEW Down Payment client’s disposal and
home for $300,000. +$123,724 no monthly mortgage
HECM to Complete payments.*
Use $176,276 as a down Purchase
payment. *Borrower must continue to pay
property taxes, homeowner’s
Use $123,724 from a $300,000* insurance, and home maintenance
costs.
HECM for Purchase loan *Closing costs not included.
to complete new home
purchase.
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