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How it is Different?

With a traditional mortgage, a homebuyer typically makes a
down payment and monthly mortgage payments (principal and
interest) thereafter until the lender is repaid.

A HECM for Purchase requires only a down payment at the time
of the homebuyer’s purchase. The amount of the purchase
price financed by the lender does not have to repaid (principal
and interest) until the buyer sells, permanently moves out of
the home, passes away, or does not otherwise comply with the
loan terms. Both types of mortgages require that the borrower
maintain the property, pay property taxes, and homeowners
insurance.

If you have clients looking to finance a new home purchase
without taking on monthly mortgage payments, share how a
HECM for Purchase can help them accomplish their goal.
In addition, HECM program guidelines were put in place by the
United States Department of Housing and Urban Development
(HUD) to protect borrowers and further strengthen the HECM
loan product.

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