Did you know homeowners 62 and up have over $9.5 trillion¹ tied up in home equity? By incorporating HECM for Purchase loans into your business, you can open a new, growing market segment giving you the ability to close more deals on higher-value properties. The HECM for Purchase gives your buyers greater financial flexibility and control over the communities and homes of their dreams.
How a HECM for Purchase works is simple. Buyers, who must be 62 or older to participate, put down a portion (e.g. 60%) of the new home’s price, and the mortgage lender puts down the rest to complete the purchase. The lender’s portion, however, does not have to be repaid until the borrower leaves the home or does not otherwise comply with the loan terms. With no monthly mortgage payments to make, buyers may choose to use their added buying power to purchase a larger model or additional builder upgrades. Borrowers must continue to maintain the property, pay taxes and homeowners insurance, and otherwise comply with all loan terms.
More AAG Options: VA, FHA, traditional, refinance, jumbo, jumbo reverse, reverse for purchase and jumbo reverse for purchase loans.
¹Senior Housing Wealth Tops 9.5 Trillion for First Time" – Reverse Mortgage Daily. October 17, 2021. https://