Boost Your Buyers’ Purchasing Power with HECM for Purchase loans
Did you know homeowners 62 and up have over $11.2 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 It Works
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.
The Impact on Your Business
- Enhance your company’s value proposition by offering more financial solutions.
- Boost your buyers’ purchasing power.
- Increase revenues and profits from more home sales.
What This Means for Your Buyers
- Increase their purchasing power to get the home they want.
- Buy a home right-sized with more of the age-appropriate amenities they prefer.
- Enjoy no monthly mortgage payments (borrower must continue to pay property taxes, homeowners insurance, and maintain the home).
More Options: VA, FHA, traditional, refinance, jumbo, jumbo reverse, reverse for purchase and jumbo reverse for purchase loans.
¹Senior Home Equity Exceeds Record $11.12 Trillion - NRMLA. July 25, 2022. Senior Home Equity Exceeds Record $11.12 Trillion. https://www.nrmlaonline.org/about/press-releases/senior-home-equity-exceeds-record-11-12-trillion