Page 2 - WSAAG065_H4P Realtor Flyer

HECM for Purchase Loan Example

Your client, age 65, sells their existing
home for $450,000.

Step One
See Your Business Grow Purchase a New Home

n Your client finds a NEW home for
Every day more than 10,000
Americans turn 65 . Are you missing $300,000.
1
sales today by not integrating the Home Use $175,571 as a down payment.
Equity Conversion Mortgage (HECM) into
your business model? Use $137,700 from a HECM for Purchase
loan to complete purchase.
n 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 Step Two
mortgage payments via a HECM for +$175,571
*
purchase loan. Down Payment
n Do you think your clients can’t afford
the neighborhood that they love? Are +$137,700
you having trouble finding inventory for HECM to Complete Purchase
your clients? Think again! A HECM can
give your client more options without $300,000 + Closing Costs
monthly mortgage payments . Borrower
*
must continue to pay for property taxes,
homeowners insurance, and home
maintenance costs. Step Three
$274,429 at your client’s disposal and
$0 monthly mortgage payments.*

*Borrower must continue to pay property taxes, homeown-
ers insurance, and home maintenance costs.

For industry professionals only - not intended for distribution to the general public.
*Borrower must continue to pay property taxes, homeowner’s insurance, and home maintenance costs.

1 ”Baby Boomers Retire”-Pew Research Center. 2010. Web.5 Dec.2015. http://www.pewresearch.org/daily-number/baby-boomers-retire/
These materials are not from HUD or FHA and were not approved by HUD or a government agency.
Reverse mortgage loan terms include occupying the home as your primary residence, maintaining the home, paying property taxes and
homeowners insurance. Although these costs may be substantial, the lender does not establish an escrow account for these payments.
How ever, a set-aside account can be set up for taxes and insurance, and in some cases may be required. Not all interest on a reverse
mortgage is tax-deductible and to the extent that it is, such deduction is not available until the loan is partially or fully repaid.
The lender charges an origination fee, mortgage insurance premium (where required by HUD), closing costs and servicing fees, rolled
into the balance of the loan. The lender charges interest on the balance, which grows over time. When the last borrower or eligible non-
borrowing spouse dies, sells the home, permanently moves out, or fails to comply with the loan terms, the loan becomes due and payable
(and the prop erty may become subject to foreclosure). When this happens, some or all of the equity in the property no longer belongs to
the borrowers, who may need to sell the home or otherwise repay the loan balance.