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See Your Business Grow HECM for Purchase

3 Every day more than 10,000 Americans
turn 65 . Are you missing sales today by
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not integrating the Home Equity Conversion
Mortgage (HECM) into your business model?
3 Do you think your client has to move
away from family and friends for
retirement? Think again! Help them to buy in
their hometown without monthly mortgage
payments via a HECM for purchase loan.
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3 Do you think your clients can’t afford
the neighborhood that they love? Are
you having trouble finding inventory for your
clients? Think again! A HECM can give your
client more options without monthly mortgage
payments . Borrower must continue to pay for
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property taxes, homeowner’s insurance, and
home maintenance costs.

These materials are not from HUD or FHA and were not approved by HUD or a
government agency.

How it Works A reverse mortgage increases the principal mortgage loan amount and
decreases home equity (it is a negative amortization loan).
When the loan is due and payable, some or all of the equity in the property
3 Clients often qualify for a HECM loan due to no longer belongs to borrowers, who may need to sell the home or otherwise
minimal income and credit requirements. repay the loan with interest from other proceeds. The lender charges an
origination fee, mortgage insurance premium, closing costs and servicing fees
(added to the balance of the loan). The balance of the loan grows over time
3 No monthly mortgage payments as long as and the lender charges interest on the balance. Interest is not tax-deductible
they remain living in the home as their primary until the loan is partially or fully repaid. Increase Home
residence . Borrowers are responsible for paying property taxes, homeowner’s insurance,
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maintenance, and related taxes (which may be substantial). We do not Sales with HECM Loans
3 Client must maintain property taxes, establish an escrow account for disbursements of these payments. A set-aside
account can be set up to pay taxes and insurance and may be required in
homeowner’s insurance, and home repairs. some cases. Borrowers must occupy home as their primary residence and pay
for ongoing maintenance; otherwise the loan becomes due and payable. The
1 ”Baby Boomers Retire”-Pew Research Center. 2010. Web.5 Dec.2015. loan also becomes due and payable (and the property may be subject to a tax
http://www.pewresearch.org/daily-number/baby-boomers-retire/ lien, other encumbrance, or foreclosure) when the last borrower, or eligible
non-borrowing surviving spouse, dies, sells the home, permanently moves
2 Borrower must continue to pay property taxes, homeowner’s out, defaults on taxes, insurance payments, or maintenance, or does not For industry professionals only -
insurance, and home maintenance costs. otherwise comply with the loan terms. not intended for distribution to the general public.