Double your commissions with HECM for Purchase loans
Give clients more home purchasing power
Did you know, homeowners 62 and up have $6.9 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 nearer family, friends and more of the activities and amenities they enjoy. A 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.
Increase Your Home Sales with HECM Loans
Help your clients, 62 and over, finance a home purchase with no monthly mortgage payments2.
It’s possible with a Home Equity Conversion Mortgage (HECM), a solution more Real Estate Professionals and their clients are discovering every day.
The concept is simple. Your clients 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 covers the rest. The HECM, however, doesn’t have to be repaid until the homeowner leaves the property¹. The borrower must of course continue to pay their property taxes, homeowner's insurance, and home maintenance costs.
If you help your clients both sell their current home and purchase a new one, that’s two commissions for you.
How HECM for Purchase loans can benefit your business:
- Sell more homes to your senior clients who are transitioning into retirement.
- Benefit from two potential transactions: a home sale and a purchase.
- Assist clients with obtaining financing they originally did not think they could obtain without existing employment.
- Provide more financial solutions for your older clients to help them live a better retirement.
Every day, more than 10,000 Americans turn 653. Capture your share of this emerging wave by integrating HECM for Purchase loans into your business model. While you will be growing your business, you will be helping more of your senior clients enjoy these advantages:
- Remain close to family and friends while right-sizing their home for their unique lifestyle
- Access more inventory options, including high-value homes without monthly mortgage payments2
- Expand their home-purchasing power
1 Housing Wealth for Homeowners 62+ Reaches $6.9 Trillion in Q2 2018 - NRMLA. Sept. 2018. https://www.nrmlaonline.org/about/press-releases/housing-wealth-for-homeowners-62-reaches-6-9-trillion-in-q2-2018
2Borrower must continue to pay property taxes, homeowner’s insurance, and home maintenance costs.
3”Baby Boomers Retire”-Pew Research Center. 2010. Web.5 Dec.2015. http://www.pewresearch.org/fact-tank/2010/12/29/baby-boomers-retire/
Example: A married couple wants to purchase a home valued at $300,000. The youngest spouse’s age is 65 and the current initial fixed interest rate is 4.56%.
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.
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.
ReadHECM for Purchase Reference Guide for Real Estate Professionals
Learn more details about the HECM for Purchase loan with this reference guide.
ReadHECM 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.
ReadHECM 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.
ReadHelp 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
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American Advisors Group, NMLS #9392, headquartered at 3800 W. Chapman Ave., 3rd & 7th Floors, Orange, CA 92868.
News & Updates
How Millennial and Baby Boomer Views Differ
According to the 2019 Q4 Homeownership Opportunities and Market Survey from the National Association of Realtors, just 53% of millennials think it’s a good time to buy a home. But boomers? A whopping 70% of younger ones (those born between 1955 and 1964) say it is. Older boomers (born between 1946 and 1954) come in […]
Read More
Americans More Likely to be Equity-Rich
14.5 million residential properties in the United States are considered equity-rich, based on data which indicates that the combined estimated amount of loans secured by those properties was 50% or less of their estimated market value. Read more…
Read More
Finding Your Right Mortgage Product
Home ownership is a serious commitment, whether you’re a first-time buyer or a seasoned pro. There’s a lot to think about before and after you purchase a home, and it’s crucial that buyers arm themselves with the best information available. Read more…
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