Page 1 - AAG028_HECM for Purchase Estimator Flyer
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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 mortgage
that is specifically designed to assist people age 62 or older in purchasing a home
with no monthly mortgage payments*. Use the HECM for Purchase to increase your HECM for Purchase
Loan Example
sales opportunities and move more inventory while offering a viable financial option
to your senior clients. Use the charts below to determine how much your buyer can
finance with a HECM for Purchase and how much money they would need to provide
at closing. Your client, age 65,
sells their existing
*Borrower must continue to pay property taxes, homeowners insurance, and home home for $450,000.
maintenance costs.
How it Works Step One
A couple with the youngest spouse aged 65 would like to buy a $300,000 house Purchase a New
without monthly mortgage payments*. How much of the home purchase could be Home
financed by a HECM and how much money would they need to provide at closing?
Your client finds a NEW
2
home for $300,000 .
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 Use $175,571 as a down
will give you an estimate of the HECM loan amount. payment.
Use $137,700 from a
Home Value $200,000 $300,000 $500,000 $700,000 $1,000,000 HECM for Purchase loan
to complete purchase.
65 Years Old $91,800¹ $137,700² $229,500³ $321,300⁴ $333,474⁵
75 Years Old $103,800⁶ $155,700⁷ $259,500⁸ $363,300⁹ $377,066¹⁰ Step Two
+$175,571
85 Years Old $122,600¹¹ $183,900¹² $306,500¹³ $429,100¹⁴ $445,360¹⁵ DOWN PAYMENT
+$137,700
Chart1. HECM Loan Amount**
HECM TO COMPLETE PURCHASE
Down Payment: Locate the age on the chart closest to the youngest buyer’s age. Then $300,000 +
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 provide at closing. Closing Costs
Home Value $200,000 $300,000 $500,000 $700,000 $1,000,000
Step Three
65 Years Old $118,882 $175,571 $290,684 $403,643 $692,874 $274,429 at your
client’s disposal
75 Years Old $106,882 $158,618 $260,684 $361,643 $649,282 and $0 monthly
mortgage
payments.
85 Years Old $88,082 $130,418 $213,684 $295,843 $580,989
Borrower must continue
Chart 2. estimated Amount Buyer Needs to Provide at Closing to pay property taxes,
homeowners insurance,
and home maintenance
costs.
For industry professionals only - not intended for distribution to the general public.
AAG028