Page 1 - AAG075_HECM for Purchase Reference Guide for Realtors
P. 1
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
Call today for additional information.