Page 6 - AAG126_HECM for Purchase for Realtors Booklet

How it is Different?

With a traditional mortgage, a homebuyer typically makes a
down payment and monthly mortgage payments (principal and
interest) thereafter until the lender is repaid.

A HECM for Purchase requires only a down payment at the time
of the homebuyer’s purchase. The amount of the purchase price
financed by the lender does not have to repaid (principal and
interest) until the homebuyer sells, permanently moves out of
the home or passes away. Both types of mortgages, however,
require that the borrower maintain the property, pay property
taxes and homeowners insurance, and otherwise comply with
all loan terms.

If you have clients looking to finance a new home purchase
without taking on monthly mortgage payments, share how a
HECM for Purchase can help them accomplish their goal.
In addition, HECM program guidelines were put in place by the
United States Department of Housing
and Urban Development (HUD) to
protect borrowers and further
strengthen the HECM loan
product.

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