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Realtors, discover the HECM for purchase loan!

Give Your Senior Clients More Options!

Become an expert in the senior market, one of the fastest growing segments with more than 10,000 baby boomers turning 65 each day.** This powerful financial tool can open up a new market segment for you and potentially involve you in two transactions at once.

 HOMEBUYING in Reverse…

The HECM for Purchase Loan, commonly known as a reverse mortgage loan, is a government-insured loan that allows homeowners 62 and over to use the equity from the sale of a previous residence, or other qualified sources to buy their next primary home in one transaction.

Regardless of what happens to their home’s value, they make one, initial investment or downpayment towards the purchase and no monthly mortgage payments. Borrowers remain responsible for paying property taxes, homeowner’s insurance and otherwise complying with the loan terms.

Advantages For Buyers
Advantages for Buyers

-Lower qualification requirements than other loans

-Monthly mortgage payments are not required*

-Less upfront investment than a cash purchase

Powerful Tool For Realtors
Powerful Tool for Realtors

-Sell more homes in 55+ communities

-Improve your clients’ options & buying power

-Help clients relocate to the ideal home for retirement

Realtors, Discover the HECM for purchase Loan!

Give Your Senior Clients More Options!

Become an expert in the senior market, one of the fastest growing segments with more than 10,000 baby boomers turning 65 each day.** This powerful financial tool can open up a new market segment for you and potentially involve you in two transactions at once.

About HOMEBUYING in Reverse…

The HECM for Purchase Loan, commonly known as a reverse mortgage loan, is a government-insured loan that allows homeowners 62 and over to use the equity from the sale of a previous residence, or other qualified sources to buy their next primary home in one transaction. Regardless of what happens to their home’s value, they make one, initial investment or down payment towards the purchase and no monthly mortgage payments. Borrowers remain responsible for paying property taxes, homeowner’s insurance and otherwise complying with the loan terms.

Reverse Mortgage Purchase

Advantages for the Buyer

  • Lower qualification requirements than other loans
  • Monthly mortgage payments are not required*
  • Less upfront investment than a cash purchase

A powerful tool for Realtors

  • Sell more homes in 55+ communities
  • Improve your clients’ options & buying power
  • Help clients relocate to the ideal home for retirement

HELP YOUR CLIENT, Right-Size Their Home!

  • The youngest borrower must be 62 years or older (a non-borrowing spouse may be under 62)
  • Purchased home must be a principal residence, occupied within 60 days of loan closing.
  • The property must be a single-family home, 2-4 unit dwelling, or an FHA-approved condominium.
  • Downpayment must be paid in cash from qualified sources such as the sale of a prior residence, home buyer’s other assets or savings.
  • Borrower(s) must complete a HUD-approved counseling session.

HELP YOUR CLIENT, Right-Size Their Home!

  • The youngest borrower must be 62 years or older (a non-borrowing spouse may be under 62)
  • Purchased home must be a principal residence, occupied within 60 days of loan closing.
  • The property must be a single-family home, 2-4 unit dwelling, or an FHA-approved condominium.
  • Downpayment must be paid in cash from qualified sources such as the sale of a prior residence, home buyer’s other assets or savings.
  • Borrower(s) must complete a HUD-approved counseling session.

For industry professionals only – not intended for distribution to the general public.

*Borrowers must continue to pay for property taxes, homeowner’s insurance, and home maintenance. ** The Blessing and Challenges of Caring for Older Family Members” – Forbes. 2017. Wed 3 March www.forbes.com/sites/nextavenue/2017/02/16/the-blessings-and-challenges-of-caring-for-older-family-members. These Materials are not from HUD or FHA and were not approved by HUD or a government agency. A reverse mortgage increases the principal mortgage loan amount and decreases home equity (it is a negative amortization loan).

When the loan is due and payable, some or all of the equity in the property no longer belongs to borrowers, who may need to sell the home or otherwise repay the loan with interest from other proceeds. The lender charges an origination fee, mortgage insurance premium, closing cost and servicing fees (added to the balance of the loan). The balance of the loan grows over time and the lender charges interest on the balance. Interest is not tax-deductible until the loan is partially or fully repaid.

Borrowers are responsible for paying property taxes, homeowner’s insurance, maintenance, and related taxes (which may be substantial). we do not establish an escrow account for disbursements of these payments. A set-aside account can be set up to pay taxes and insurance and may be required in some cases. Borrowers must occupy the home as their primary residence and pay for ongoing maintenance; otherwise, the loan becomes due and payable. The loan also becomes due and payable (and the property may be subject to a tax lien, other encumbrance, or foreclosure) when the last borrower, or eligible non-borrowing surviving spouse, dies, sells the home, permanently moves out, defaults on taxes, insurance payments, or maintenance, or does not otherwise comply with the loan terms.

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