Boost your buyers’ purchasing power with HECM for Purchase loans

Did you know, homeowners 62 and up have $6.8 trillion1 tied up in home equity? By incorporating HECM for Purchase loans (exclusive to homeowners 62+) into your business, you can open a new, growing market segment giving you the ability to close more deals on higher-value properties.



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Build Sales in Your Communities

With the help of Home Equity Conversion Mortgage (HECM) for Purchase loans, increase your sales by putting your retirement-bound prospects into the homes they want. With more than 10,000 baby boomers turning 65 every day2, it’s a growing market you can’t afford to ignore.

How a HECM for Purchase works is simple. Buyers, who must be 62 or older to participate, put down a portion (e.g. 60%) of the new home’s price, and the mortgage lender puts down the rest to complete the purchase. The lender’s portion, however, does not have to be repaid until the borrower leaves the home. With no monthly mortgage payments to make, buyers may choose to use their added buying power to purchase a larger model or additional builder upgrades. Borrowers must continue to maintain the property, pay taxes and homeowner’s insurance and otherwise comply with all loan terms.

With HECM for Purchase loans, you can:

  • Increase your value proposition by offering more financial solutions to your homebuying prospects
  • Enhance your buyers’ purchasing power
  • Position your company as both a builder and home solutions provider
  • Increase revenues and profits from more home sales

The HECM for Purchase is an FHA-insured home loan that gives your homebuyers greater financial flexibility, control and certainty over the communities and homes they want to live in for a better retirement.

With HECM for Purchase loans, your buyers can:

  • Live closer to family and friends
  • Buy a home right-sized with more of the age-appropriate amenities they prefer
  • Enjoy no monthly mortgage payments (borrower must continue to pay property taxes, homeowners insurance, and home maintenance costs)
  • Enhance liquidity by not making all-cash purchase
  • Increase their purchasing power to get the home they want

1"Housing Wealth for Homeowners 62+ Reaches $6.9 Trillion in Q2 2018" - National Reverse Mortgage Lenders Association. Sept. 2018. https://www.nrmlaonline.org/about/press-releases/housing-wealth-for-homeowners-62-reaches-6-9-trillion-in-q2-2018

2”Baby Boomers Retire”-Pew Research Center. 2010. Web.5 Dec.2015. http://www.pewresearch.org/daily-number/baby-boomers-retire/



Loan Example
This example is based on the youngest borrower age 65, Annual Percentage Rate of 5.709%, home purchase price of $300,000, IMIP of $6,000, origination fee of $5,000, and other settlement costs of $2,976. HECM Fixed as of 06/20/2018.

According to NAR, 1 in 5 home buyers today is over the age of 62. What if 20% of your buyers had 40% more purchasing power? By incorporating Home Equity Conversion Mortgage (HECM) for Purchase loans (exclusive to homeowners 62+) into your business, you can open a new, growing market segment, giving you the ability to close more deals on higher-value properties. See below to learn more.

Help Build Sales in Your Communities

Give your senior clients more options! This flyer includes an example of how your buyers can use a HECM for Purchase loans to purchase your properties, allowing you to move more inventory.

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American Advisors Group, NMLS #9392, headquartered at 3800 W. Chapman Ave., 3rd & 7th Floors, Orange, CA 92868.

News & Updates

Top 10 Reasons Seniors Choose Jumbo Reverse Mortgage Loans

Trends show that wealthy seniors are now taking advantage of their home equity as means for further investments. American Advisors Group (AAG), a leading provider of home equity solutions for retirement, today revealed the top 10 reasons seniors are choosing their Advantage™ jumbo reverse mortgage loan. The Advantage loan gives affluent seniors access to their home […]

Read More

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America’s big coastal cities are really expensive. The Bureau of Economic Analysis recently released data on personal income and the cost of living in 2016 for metropolitan and nonmetropolitan parts of states, including the relative cost of living in different parts of the country. Regional price parity is an index that sets the national average cost of […]

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The National Reverse Mortgage Lenders Association (NRMLA) released two free toolkits today for real estate agents and homebuilders who work with older homebuyers. The guides explain a mortgage financing option specifically for buyers aged 62 and older called “HECM for Purchase.” The Home Equity Conversion Mortgage for Purchase is a federally insured reverse mortgage that […]

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