Page 1 - WSAAG090_H4P Reference Guide

Home Equity Conversion Mortgage

(HECM) for Purchase Reference Guide

for Real Estate Professionals and Sellers

Sales Contract Property Types Helpful Hints

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

No borrowed funds –
n
even if secured

No subordinate liens
n

WSAAG090