A Home Equity Conversion Mortgage (HECM) for Purchase is an innovative loan that lets seniors buy a home by using the equity from the sale of their previous home or other assets. It has become teh #1 way in America retirees are changing their futures. And every Financial Advisors and Realtor and Builder needs to know how it works.
See these earlier posts: Why Doesn’t Every Realtor in the Country Know About This?, How to Add $350,000 to Your Clients Retirement with One Simple Strategy! and 7 Reasons Your Retired Buyers Need You to Know About Reverse Mortgages
If you will recall, the HECM for Purchase,
Allows borrowers age 62 or older, to purchase a new primary residence and obtain a Home Equity conversion Mortgage in simultaneous transaction with no monthly payments. No Minimum FICO credit Score and No Standard Income Qualifications
Keep in mind, since the property is sole collateral for the loan, there is no need to qualify for credit, assets, health, or income. Below I have listed your review are several purchase loan scenarios for your review.
What are the advantages? Using the HECM for purchase loan, the math is very clear, with a $111,000 investment, you can buy a $111,000 Home in cash or $250,000 Home with a HECM Purchase Loan.
Right size and save more for retirement. For example, a 67 year old can purchase a home for $250,000 with HECM Loan Proceeds $139,000 with cash due at closing $125,842.50; the HECM loan can have either a fixed interest rate of 4.99% or adjustable rate of 3.114%, with an appraised home value of $250,000. Total estimated settlement costs $14,842.50 includes mortgage insurance premium $6,250, origination fee $4,500, and other loan charges $4,092.50. Keep in mind, interest rates may vary.
Download the Free Buyers Guide at www.RightSizeRetirement.com
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HECM Advisors Group
Consulting, Training & Education- HECM Advisors Group http://www.HECMAdvisorsGroup.com
Email: Don@HECMAdvisorsGroup.com | Connect with me on LinkedIn |Twitter @AskDonGraves |YouTube/AskDonGraves
25 Washington Lane, Suite 10A
Wyncote, PA 19095
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