Page 1 - AAG075_HECM for Purchase Reference Guide for Realtors
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HECM for Purchase

          Reference Guide

          for Real Estate Agents and Sellers


















          Sales Contract                                           Property Types

              Seller must complete all FHA-required repairs prior     1-to 4-family units, townhomes, planned unit
              to closing                                              developments (PUDs), FHA-approved condos,

                Amendatory Clause and Real Estate Certification       manufactured homes built after June 15, 1976,
              documents – signed by seller, borrower, and real        evidenced by affixed HUD seal (tag)
              estate agent(s)                                           Ineligible property – co-ops, manufactured homes
                Seller-paid fees may be allowed if common and         built prior to June 15, 1975, manufactured homes
              customary for the property jurisdiction                 that were installed or occupied previously at
                                                                      another site or location, Farmland
              No Seller, Realtor, Builder concessions or closing
              cost credits permitted                                  Unique properties accepted on a case-by-case basis
              No personal property can be included – unless           Leasehold where they are common and have
              it is common to be included – such as a stove or        received market acceptance
              refrigerator in a kitchen                                 99-year leasehold – lease must not mature until 50
              Builder upgrades or design credit must be clearly       years after the youngest borrower’s 100th birthday
              outlined as part of the purchase price
                No borrowed funds for down payment or earnest
              money deposit – even if secured
                No subordinate liens
              Signed copy of fully executed contract &             Helpful Hints
              addendums – all pages
                                                                        Value is the lesser of sales price, appraised value or
                                                                      FHA Lending Limit
                                                                      Must occupy home within 60 days of funding
                                                                      Title and settlement agent and/or attorney used
                                                                      for purchase transaction must possess software to
                                                                      produce a HUD for closing. Power of Attorney cannot
                                                                      be used. All transactions must be arm’s length












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