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.



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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%.

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.
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 Basics for Real Estate Professionals

Give senior clients more options with Home Equity Conversion Mortgage (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.

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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.

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

News & Updates

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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 […]

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