Real Estate Professionals: A home financing option that can help you sell more homes
The Baby Boom generation represents an important opportunity for real estate professionals to serve a rapidly growing market of people who are motivated to sell their current homes and buy a different one for retirement — one that’s “right-sized,” and may be closer to friends and/or family.
Our Home Equity Conversion Mortgage (HECM) for Purchase home financing solution can make it easier for people age 62 and older to buy a home that better fits their retirement needs and wants.
- It can help you attract and capture a brand new — and rapidly growing — market of home buyers.
- Get a larger audience for your listings.
- More shoppers can become buyers.
- Buyers get additional spending power, enabling them to better afford upgrades or a more expensive home.
- Gain more leads from satisfied customers.
How it works: Buyers can purchase a home by combining a one-time investment of their own funds (a down payment of about 29% to 52%, depending on borrower age) with loan proceeds from a HECM. (This down payment range assumes closing costs will be financed into the loan.) As with a traditional “forward” mortgage, the home they purchase secures the loan. But unlike a traditional mortgage, monthly mortgage payments are optional while they own and live in the home as their primary residence — making buying a new home even more attractive.
As with any home-secured loan, in order for the loan to remain in good standing they must maintain the property, and keep current with property-related taxes and insurance payments.
The chart below gives examples of required down payment amounts, based on borrower age and home purchase price.
|*||The amounts displayed are for illustrative purposes only. Actual down payment amounts may vary based on interest rate and other factors. Please contact us for details about credit costs and terms.|
To learn more about how this powerful financing option can be a key ingredient in helping more home shoppers become buyers, or to discuss a marketing strategy for this unique audience, please contact me.
HECM Loan Specialist, NMLS #21059
Call 815-703-4745 | email@example.com