Page 1 - AAG031_HECM for Realtors Client Right Size

Help your client right-size

to a new home.

Purchase a home with a HECM Loan

The Home Equity Conversion Mortgage (HECM) for
Purchase Loan is a government-insured loan designed for
people 62 and over, which allows the use of equity from the
sale of a previous home, or other qualified sources to fund
the purchase of their next home.

Discover the HECM for Purchase Loan

The HECM for Purchase Loan, commonly known as a
reverse mortgage loan, is a government-insured loan that
allows homeowners 62 and over to use the equity from the
sale of a previous residence, or other qualified sources to
buy their next primary home in one transaction. Regardless
of what happens to their home’s value, they make one,
initial investment or down payment towards the purchase Easy Application Process
and no monthly mortgage payments. Borrowers remain Improve Purchasing Power
responsible for paying property taxes, homeowner’s
insurance and otherwise complying with the loan terms. Increase Your Sales

EXAMPLE ONE TWO THREE
HECM for Purchase a New +$177,283 $272,717 at your
Purchase Loan Home Down Payment client’s disposal

Your client finds a NEW +$122,717 and no monthly
mortgage
home for $300,000. payments.*
HECM to Complete
Use $177,283 as a down Purchase
payment.
*Borrower must
Your client, a continue to pay property
homeowner age 65, Use $122,717 from a taxes, homeowner’s
sells their existing HECM for Purchase loan insurance, and home
home for $450,000. to complete new home $300,000 maintenance costs.
purchase.

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. 2017 HECM fixed as of 1/8/2018.