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Finance a home purchase with no monthly mortgage payments . HECM for Purchase
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Call me today! Frequently Asked Questions

What sources are allowed for the down
payment?
The sale of the existing home, gift money,
Give Senior Clients More Options How home equity conversion home buyer’s savings and other assets are all
With the HECM (Home Equity Conversion mortgages can benefit you: sufficient ways to source the required funds for
Mortgage) for Purchase loan, everybody wins! In- closing.
crease sales opportunities for yourself and move 3 Sell more homes to your senior clients
more inventory while offering a viable financial who are transitioning into retirement.
option to your senior clients. What sources CANNOT be used for the
3 Benefit from two potential transactions: a cash required to close?
A HECM for Purchase loan is a reverse mortgage
that is specifically designed to assist people age home sale and a purchase. Seller’s financing and concessions, credit card
62 or older purchase a home with no monthly 3 Assist clients with obtaining financing cash advances, bridge loans and subordinate
mortgage payments . financing cannot be used for closing.
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they originally did not think they could
obtain without existing employment.
2 Borrower must continue to pay property taxes, What property types are eligible?
homeowner’s insurance, and home maintenance Single-family residences, FHA-approved con-
costs. dos, FHA-approved manufactured homes, and
Planned Unit Developments (PUDs).

What property types are NOT eligible?
Example A married couple wants to purchase a home valued at Co-ops, second homes (investment properties),
$300,000. The youngest spouse’s age is 65 and the current initial fixed boarding houses, bed and breakfast establish-
interest rate is 4.56%. ments, and manufactured homes not approved
by FHA.
This example is based on the youngest borrower age 65, Annual Percentage Rate of 5.702%, home purchase price of
$300,000, IMIP of $6,000, origination fee of $5,000, and other settlement costs of $3,983. HECM Fixed as of 1/8/2018.
What are the Eligibility Requirements?

EXAMPLE ONE TWO THREE Home must become the buyer’s primary resi-
dence and be occupied by the buyer within 60
Purchase Price HECM Loan Proceeds Funds Due from Monthly days from the closing date. Construction must
of Home (not including financing Borrower at Closing Mortgage be complete, and the property must be habit-
and closing fees, Payment 2
calculation based on age able. A certificate of occupancy or the equiva-
of youngest borrower, interest lent must be issued prior to submission of the
rates, and home value) loan application.

$300,000 $122,717 $177,283 $0