Increase Your Commissions
with the HECM for Purchase
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.
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.
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
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
Increase Your Buyers’ Purchasing Power
Are you a builder or real estate professional with senior clients eager to move out of their current homes and into new ones — if only they could do it in such a way that they didn’t have to exhaust all or most of their home sale profits or retirement savings? If you have clients […]
Read MoreCall us today: (866) 680-2766
For industry professionals only – not intended for distribution to the general public.
AAG/American Advisors Group are divisions of Finance of America Reverse LLC which is licensed nationwide | Equal Housing Opportunity | NMLS ID # 2285 | 8023 East 63rd Place, Suite 700 | Tulsa, OK 74133
News & Updates
Increase Your Buyers’ Purchasing Power
Are you a builder or real estate professional with senior clients eager to move out of their current homes and into new ones — if only they could do it in such a way that they didn’t have to exhaust all or most of their home sale profits or retirement savings? If you have clients […]
Read More