Builders: Here’s a smart home financing option that can help you sell more homes and upgrades

Let me show you how our Home Equity Conversion Mortgage (HECM) for Purchase home financing program can help you sell more homes, by making it easier for people age 62 and older to buy the home they desire.

  • It can help you attract and capture a brand new — and rapidly growing — market of home buyers. Did you know that 22% of today’s home buyers are age 62 and older, according to a recent study by the National Association of Realtors®, and that number is expected to grow over the next decade?
  • More shoppers can become buyers, because it allows them to keep more of their cash than they could with a conventional mortgage or an all-cash purchase.
  • Buyers can get additional spending power for upgrades or to purchase a higher-end home (e.g., pick premium lot, more square footage, etc.)

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.

Comparing three ways to purchase a new home:

All Cash
Traditional Mortgage
HECM for Purchase
  • Buyer owns the home free and clear
  • Option to make a minimum down payment and limit upfront investment
  • Builds equity as they pay down the loan
  • Flexible repayment feature: Monthly principal and interest payments are optional*
  • Gives the buyer the flexibility to get the home they really want
  • Allows them to keep more assets to use as they wish
  • Ties up a large portion of their money
  • Monthly mortgage payments diminish the buyer’s cash flow
  • The buyer’s equity in the home decreases if principal and interest payments are deferred, as the loan balance increases over time due to interest
  • Requires a larger down payment than the traditional mortgage option

*  Borrower is responsible for property taxes, homeowners insurance, and property maintenance in order for the loan to remain in good standing. A HECM is a home-secured loan that must be repaid upon default or a maturity event, such as when the home is sold, all homeowners have passed away, or the last surviving borrower no longer lives there as their primary residence.

Contact me today to find out how you can tap into this vital market, create more foot traffic and sell more homes.

Vicki Cheairs
HECM Loan Specialist, NMLS #543256
Call 281-855-1122 |

Learn more about this unique home financing solution and how it can impact your business.

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