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What is a HECM for Purchase?

Designed for adults age 62 years or older, the Home Equity Conversion
Mortgage (HECM) for Purchase Loan can help your clients buy their next home HECM for Purchase
without monthly mortgage payments.* The HECM for Purchase is an FHA- Example
insured home loan that allows older adults to use the equity from the sale of a Client sells existing
previous residence to buy their next primary home in one transaction. Regardless home for $450,000.
of how long they’ve lived in the home or what happens to the home’s value, they
only make one, initial investment (down payment) towards the purchase. The
loan becomes due when the last borrower, or eligible non-borrowing surviving Purchase New Home
spouse, dies, sells the home, permanently moves out, defaults on taxes or Your client finds a NEW
insurance payments, or does not comply with the loan terms. home for $300,000.

Within the same transaction, borrowers can: Use $175,740 as a
down payment.
l Purchase a new principal residence Use $124,260 from a
HECM For Purchase
l Obtain a reverse mortgage loan to complete new home
purchase.
“Not only did working with American Advisors Group to obtain a HECM for
Purchase make it possible for us to retire 10 years sooner than we thought we
could, it allowed us to take advantage of a strong real estate market to obtain +$175,740
our dream home.” Andy and Beatrice H., Florida
DOWN PAYMENT
+$124,260
How does your buyer benefit?
l Buy a new home with no monthly l Increases purchasing power HECM TO COMPLETE
mortgage payments* PURCHASE
l Seniors can move into a more
l Contributes towards the down suitable home in their golden years $300,000
payment on a home purchase - pay
less upfront than a cash purchase l Enjoy carefree living in a senior
housing community $274,260 at your
l Lower cost of living during client’s disposal and
retirement by eliminating monthly no monthly mortgage
mortgage payments* payments *

This example is based on the youngest borrower age 65, Annual Percentage Rate of 5.702%, home
purchase price of $300,000, IMIP of $6,000, origination fee of $5,000, and other settlement costs of
$2,440. 2017 HECM fixed as of 10/17/17.
*If you qualify and your loan is approved, a reverse mortgage must pay off your existing mortgage(s). With a
reverse mortgage, no monthly mortgage payment is required. Borrower must continue to pay for property
taxes, homeowner’s insurance and home maintenance.