Page 1 - AAG075_HECM for Purchase Reference Guide for Realtors
P. 1
HECM for Purchase Reference Guide
for Realtors and Sellers
Sales Contract Property Types Helpful Hints
3 Seller must complete all 3 One to four family, 3 Value is the lesser of sales
FHA-required repairs prior to townhomes, planned price, appraised value or FHA
closing unit development (PUDs), Lending Limit
manufactured homes (see
3 Signed copy of fully executed next bullet point) & FHA- 3 Must occupy home within 60
contract – all pages approved condos days of funding
3 Amendatory Clause and 3 neligible property – co- 3 “New Construction” -
I
Real Estate Certification ops, manufactured homes Builder’s rep to get closing
documents - signed by seller, produced prior to June statement from closed sales
borrower and real estate 15, 1975, manufactured and give to the appraiser.
agent(s) homes that were installed Since most builders do not
3 Seller paid fees may be or occupied previously at use MLS the appraiser will
need these for the appraisal.
allowed if common and another site or location
customary 3 Unique properties accepted
3 No personal property can on a case-by-case basis
be included – unless it is 3 99-year leasehold – lease
common to be included – must not mature until 50
such examples would be years after the youngest
a stove or refrigerator in a borrower’s 100th birthday
kitchen
3 No borrowed funds – even if
secured
3 No subordinate liens
For industry professionals only –
not intended for distribution to the general public.
AAG075
