Give Your Clients More Home Purchasing Power

Did you know homeowners 62 and up have over $7 trillion1 tied up in home equity? That’s wealth your clients could use to sell their current home and apply a portion of their sale proceeds to buy a more age-appropriate residence closer to family, friends, and more of the activities and amenities they enjoy. A Home Equity Conversion Mortgage (HECM) loan does just that. The HECM provides the remainder of the funds to complete the new home purchase, potentially resulting in two transactions for you and a better retirement for your clients.

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Increase Your Home Sales with HECM Loans

The concept is simple. Your clients (age 62 and up) contribute a portion (e.g. 60%) of the new home purchase price using proceeds from the sale of their previous home or other financial resources, like savings and investments, and the HECM loan covers the rest. The HECM, however, doesn’t have to be repaid until the homeowner leaves the property (or does not otherwise comply with the loan terms) and no monthly mortgage payments are required. Borrowers must of course continue to pay their property taxes, homeowners insurance, and maintain the home.

HECM Example

Benefits to Your Business

  • Sell more homes to clients who are transitioning into retirement.
  • Benefit from two potential transactions: a sale and a purchase.
  • Assist clients with obtaining financing they originally did not think they could obtain without existing employment.

Your Clients’ Advantages

  • Remain close to family and friends while right-sizing their home for their unique lifestyle.
  • A new home with no monthly mortgage payments (borrower must continue to pay taxes and insurance and maintain the home).
  • Expanding their purchasing power to a higher-priced home that better achieves their goals.

More AAG Options: VA, FHA, traditional, refinance, jumbo, jumbo reverse, reverse for purchase and jumbo reverse for purchase loans.

1"Senior Housing Wealth Reaches Record $7.23 Trillion" - National Reverse Mortgage Lenders Association. April 3, 2020. https://www.nrmlaonline.org/about/press-releases/senior-housing-wealth-reaches-record-7-23-trillion

HECM FOR PURCHASE FAQS

Home must become and remain the buyer’s primary residence and be occupied by the buyer within 60 days from the closing date. Construction must be complete, and the property must be habitable.

Co-ops, second homes (investment properties), boarding houses, bed and breakfast establishments, and manufactured homes not approved by FHA or built before 1990.

Primary single-family residences, FHA-approved condos, FHA-approved manufactured homes built in 1990 or later, and Planned Unit Developments (PUDs).

Seller’s financing and concessions, credit card cash advances, bridge loans and subordinate financing cannot be used for closing.

The sale of the existing home, gift money, home buyer’s savings and other assets are all sufficient ways to source the required funds for closing.

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? Whether you are looking to gain new clients or open up more inventory for current clients, AAG is here to help. Click on any of the tools below to learn more about incorporating HECM for Purchase loans into your real estate business.

HECM for Purchase Booklet for Real Estate Professionals

Learn how a HECM for Purchase loan can double your commissions and give clients more purchasing power.

Read

HECM for Purchase Reference Guide for Real Estate Professionals

Learn more details about the HECM for Purchase loan with this reference guide.

Read

HECM for Purchase Estimator

Learn how a HECM for Purchase loan can increase sale opportunities and move more inventory while offering a viable financial option to your senior clients.

Read

HECM for Purchase Basics for Real Estate Professionals

Give senior clients more options with HECM for Purchase loans. Learn more about eligible buyers can finance a home using a HECM for Purchase and how you can benefit by incorporating this powerful tool into your business.

Read

Help Your Clients Right-Size

This flyer covers example scenarios to illustrate how HECM for Purchase loans work and how you can help your clients find a home that better suits their needs in retirement.

Read

Funding Senior Care with Home Equity Solutions

Paying for in-home care at any age can be challenging, but for seniors the burden can be especially difficult. Together, we can serve more seniors – better! During this webinar, we’ll discuss how you can:

  • Help your clients fund the care they need
  • Grow your business
  • Retain caregivers and clients
  • Increase the longevity of care
  • Decrease hospital re-admittances
Register Now

Meet the Speaker

Kelly Rogers

Kelly Rogers

Certified Gerontologist

Kelly Rogers is a Certified Gerontologist with more than 28 years of experience working with seniors and their families. Her background in both senior care and financing makes her the perfect fit for the nation’s No. 1 Reverse Mortgage Lender, American Advisors Group. Kelly’s drive in life is truly helping seniors and their families understand how they can afford the proper services and care they deserve to Retire Better!

  • Certified Gerontologist (2008)
  • Certified Memory Impairment Specialist (CMIS) (2002)
  • Licensed Mortgage Officer – NMLS ID: 1065452
  • HCAOA Member
  • Alzheimer’s Aid Society of Northern CA – Member & Co-Author

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Homeowners $2 Trillion Richer in First Three Months of the Year

Homeowners are getting richer and richer as prices keep soaring – and the numbers are staggering. Those with mortgages, about 62% of all properties, saw their equity jump by 20% in the first quarter from a year earlier, according to CoreLogic. Read More…

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Baby Boomers Reassessing Retirement During Pandemic

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Senior Housing at Record High

Homeowners 62 and older saw their housing wealth grow by three percent or $234 billion in the fourth quarter to a record $8.05 trillion from Q3 2020, according to the latest quarterly release of the NRMLA/RiskSpan Reverse Mortgage Index (RMMI). Read more…

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Closing the Price Gap

HECMWorld’s latest podcast goes into detail on closing the price gap when buying a home with a reverse mortgage. The topics discussed in the podcast can show you how you can help your clients increase their purchasing power with Home Equity Conversion Mortgage loan, which in turn will increase your commission. Listen here…

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What the Housing Market Will Be Like in 2021

We left 2020 with the housing market on fire, with record-low mortgage rates and a sudden wave of relocations made possible by remote work. Home prices have now pushed new boundaries as buyer demand continues to surge. Read more…

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Reverse Lending Limit Increased to More Than $822K

The Department of Housing and Urban Development has announced the maximum claim amount of federally backed reverse mortgages will be increased to $822,375 for 2021. Read more…

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American Advisors Group, NMLS #9392, headquartered at 18200 Von Karman Ave., Suite 300, Irvine, CA 92612.

News & Updates

Homeowners $2 Trillion Richer in First Three Months of the Year

Homeowners are getting richer and richer as prices keep soaring – and the numbers are staggering. Those with mortgages, about 62% of all properties, saw their equity jump by 20% in the first quarter from a year earlier, according to CoreLogic. Read More…

Read More

Baby Boomers Reassessing Retirement During Pandemic

Baby boomers who are downsizing have had to delay their plans and reassess during the pandemic. The consideration now has become proximity to adult kids and grandchildren, some even giving up their dreams in what they were going to do in retirement just to be near family. Read more…

Read More

Senior Housing at Record High

Homeowners 62 and older saw their housing wealth grow by three percent or $234 billion in the fourth quarter to a record $8.05 trillion from Q3 2020, according to the latest quarterly release of the NRMLA/RiskSpan Reverse Mortgage Index (RMMI). Read more…

Read More