Page 1 - AAG028_HECM for Purchase Estimator Flyer

HECM for Purchase Loan

Give your clients more home purchasing power

A Home Equity Conversion Mortgage (HECM) for Purchase loan is a reverse mortgage
that is specifically designed to assist people age 62 or older in purchasing a home with
no monthly mortgage payments*. Use the HECM for Purchase to increase your sales HECM for Purchase
opportunities and move more inventory while offering a viable financial option to your Loan Example
senior clients. Use the charts below to determine how much your buyer can finance with a
HECM for Purchase and how much money they would need to provide at closing.

*Borrower must continue to pay property taxes, homeowners insurance, and home Your client, age 65,
maintenance costs. sells their existing
home for $450,000.

How it Works
Step One
A couple with the youngest spouse aged 65 would like to buy a $300,000 house without Purchase a New
monthly mortgage payments*. How much of the home purchase could be financed by a Home
HECM and how much money would they need to provide at closing?
Your client finds a NEW
2
Loan Amount: Locate the age on the chart closest to the youngest buyer’s age. Then find home for $300,000 .
the home value closest to the home your buyers are looking to purchase. This will give you
an estimate of the HECM loan amount. Use $175,571 as a down
payment.

Home Value $200,000 $300,000 $500,000 $700,000 $1,000,000 Use $137,700 from a
HECM for Purchase loan
to complete purchase.
65 Years Old $91,800¹ $137,700² $229,500³ $321,300⁴ $333,474⁵

75 Years Old $103,800⁶ $155,700⁷ $259,500⁸ $363,300⁹ $377,066¹⁰ Step Two
+$175,571
85 Years Old $122,600¹¹ $183,900¹² $306,500¹³ $429,100¹⁴ $445,360¹⁵
DOWN PAYMENT
+$137,700
Chart1. HECM Loan Amount**
HECM TO COMPLETE PURCHASE

Down Payment: Locate the age on the chart closest to the youngest buyer’s age. Then $300,000 +
find the home value closest to the home your buyers are looking to purchase. This will
give you an estimate of the amount your buyers would need to provide at closing. Closing Costs

Home Value $200,000 $300,000 $500,000 $700,000 $1,000,000
Step Three
65 Years Old $118,882 $175,571 $290,684 $403,643 $692,874 $274,429 at your
client’s disposal
75 Years Old $106,882 $158,618 $260,684 $361,643 $649,282 and $0 monthly
mortgage
payments.
85 Years Old $88,082 $130,418 $213,684 $295,843 $580,989
Borrower must continue
Chart 2. estimated Amount Buyer Needs to Provide at Closing to pay property taxes,
homeowners insurance,
and home maintenance
costs.
For industry professionals only - not intended for distribution to the general public.
AAG028