Page 1 - AAG075_H4P Reference Guide for Realtors

HECM for Purchase Reference Guide

Realtors & Sellers

Sales Contract Helpful Hints

a Seller must complete all FHA-required repairs prior to a Value is the lesser of sales price, appraised value or
closing FHA Lending Limit (currently $636,150)

a Signed copy of fully executed contract – all pages a Must occupy home within 60 days of funding

a Amendatory Clause and Real Estate Certification • “New Construction” - Builder’s rep to get HUD1s
documents - signed by seller, borrower and Real Estate from closed sales and give to the appraiser. Since
agent(s) most builders do not use MLS the appraiser will
need these for the appraisal.
a No seller paid fees allowed – even if common and
customary (see chart below) • Must have certificate of occupancy prior to taking
application
a No personal property can be included

a No borrowed funds – even if secured
a No subordinate liens

Property Types
a One to four family, townhomes, planned unit
development (PUDs), manufactured homes (see next
bullet point) & HUD-approved condos

a Ineligible property – co-ops, manufactured homes
produced prior to January 1, 1990, manufactured
homes that were installed or occupied previously at
another site or location

a Unique properties accepted on a case by case basis

a 99-year leasehold – lease must not mature until 50
years after the youngest borrower’s 150th birthday

-Tom Selleck
AAG Paid Spokesperson
“Bringing Stability to Your Retirement”

These materials are not for distribution to consumers. Please see your AAG
representative for consumer information.