Page 1 - AAG074_H4P Reference Guide RM Professionals

HECM for Purchase Reference Guide

Reverse Mortgage Professional

Sales Contract Property Types

4 Seller must complete all FHA-required repairs prior to 4 One to four family homes, townhomes, planned unit
closing development (PUDs), manufactured homes (see next
bullet point) & FHA-approved condos
4 Signed copy of fully executed contract – all pages
4 Ineligible property – co-ops, manufactured homes
4 Amendatory clause and real estate certification produced prior to January 1, 1990, manufactured homes
documents - signed by seller, borrower and real estate installed or occupied previously at another site or location
agent(s)
4 Unique properties accepted on a case by case basis
4 Seller paid fees may be allowed if common and
customary (see chart on reverse side) 4 99-year leasehold – lease must not mature until 50 years
after the youngest borrower’s 100th birthday
4 No personal property can be included

4 Closing date cannot be less than 30 days from receipt of
application package Helpful Hints

4 Value is the lesser of sales price, appraised value or FHA
Lending Limit ($679,650 as of 1/1/18)
Counseling
4 Always quote owner’s title even if borrower doesn’t want
4 The counseling certificate must have subject property it
address and match exactly with the names on the
application 4 Check if transfer tax is required by state or if needed
to quote
4 Must occupy home within 60 days of funding
Funds
• “New Construction” - Builder’s rep to get HUD1s from
4 No borrowed funds – even if secured closed sales and give to the appraiser. Since most
builders do not use MLS, the appraiser will need
4 No subordinate liens
these for the appraisal.
4 Funds from sale of home – signed copy of closing
statement For industry professionals only--not intended for
distribution to consumers. Please contact your local AAG
4 Checking, savings, investment or money market accounts representative for consumer information.
• 60-day seasoning required on each account where
funds are coming from
• If coming from a retirement account or equivalent,
need to source funds coming out and show funds
going into bank account

• Statements must show the following – name,
address, account #, name of institution
- Must have all pages, even if blank
- Most online statements do not show this

4 Gift from Family – Gift Letter, Sourcing and Seasoning
Required (same as above)

• NO Gifts of Equity

Tom Selleck
AAG Paid Spokesperson