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HECM for Purchase Loan

Give your clients more home purchasing power.

A Home Equity Conversion Mortgage (HECM) for Purchase loan is a reverse HECM for Purchase
mortgage that is specifically designed to assist people age 62 or older in Loan Example
purchasing a home with no monthly mortgage payments.* Use the HECM for
Purchase to increase your sales opportunities and
move more inventory while offering a viable financial Your client, age 65, sells
option to your senior clients. Use the charts below to their existing home with
determine how much your buyer can finance with net proceeds of $450,000.
a HECM for Purchase and how much money they
would need to provide at closing.
Step One
*Borrower must continue to pay property
taxes, homeowners insurance, and home Purchase a New
maintenance costs. Home

Your client finds a NEW
home for $300,000. 2
Use $168,738 as a down
How It Works payment.
A couple with the youngest spouse aged 65 would like to buy a $300,000 house
without monthly mortgage payments.* How much of the home purchase could be Use $144,600 from a
financed by a HECM and how much money would they need to provide at closing? HECM for Purchase loan
to complete purchase.
Loan Amount: Locate the age on the chart closest to the youngest buyer’s age.
Then find the home value closest to the home your buyers are looking to purchase.
This will give you an estimate of the HECM loan amount. Step Two
+$168,738
HOME VALUE $200,000 $300,000 $500,000 $700,000 $1,000,000 down payment

65 Years Old $96,400 1 $144,600 2 $241,000³ $337,400⁴ $396,385⁵
+$144,600
75Years Old $108,000 6 $162,000 7 $270,000⁸ $378,000⁹ $444,083¹⁰ HECM to complete purchase

85 Years Old $126,000 11 $189,000 12 $315,000¹³ $441,000¹⁴ $518,096¹⁵
$300,000 +
Chart1. HECM Loan Amount**
Closing Costs
Down Payment: Locate the age on the chart closest to the youngest buyer’s
age. Then find the home value closest to the home your buyers are looking to
purchase. This will give you an estimate of the amount your buyers would need to Step Three
provide at closing.
$281,262 at your
client’s disposal and
HOME VALUE $200,000 $300,000 $500,000 $700,000 $1,000,000
$0 monthly mortgage
65 Years Old $113,938 $168,738 $277,338 $384,938 $628,400 payments. (Borrower
75 Years Old $102,338 $151,338 $248,338 $344,338 $580,703 must continue
85 Years Old $84,338 $124,338 $203,338 $281,338 $506,689 to pay property
taxes, homeowners
Chart 2. Estimated Amount Buyer Needs to Provide at Closing
insurance, and home
For industry professionals only - not intended for distribution to the general public. maintenance costs.)