Offer Reverse Mortgage for Purchase (HECM) Financing
You may have heard of reverse mortgage loans for existing homes, but did you know that people can buy new homes—and that includes new construction—with these loans? Here’s why you should do it.
It Can Be a Great Deal for the Buyer
Especially since 2014, reverse mortgage loans (HECMs) have become highly regulated by the federal government and are among the safest loans around. Bad press you might have heard is likely from people who haven’t kept up with the news. Here are some of the top benefits for retirees.
View Qualifying Conditions
- One spouse must be 62 years or older to be eligible for a reverse mortgage. In Texas, both spouses must be 62 years or older
- The property must be a single-family home, a 2 to a 4-unit dwelling or an FHA-approved condo
- Must receive reverse mortgage counseling from a HUD-approved counseling agency
- The home must be a primary residence (live there 6+ months per year)
- Must meet minimal credit and property requirements
- Must not be delinquent on any federal debt
Tax-Free Money from Home Equity*
No Mandatory Monthly Mortgage Payments
(borrower must still pay taxes, insurance, and maintain the home)
They Remain Sole Owner of the Home
Payment Only Due When They Leave the Home
Why Fairway Should Be Your Go-To Partner
It’s not just because we’re nationwide and have served millions of clients, it’s because customer service is a way of life to us. We can provide the best mortgage products and rates with some of the fastest turn times in the industry. As your partner, we can also provide you with: customized marketing materials, customized video content about your properties, and educational seminars for your sales team.
Estimated Cash From Borrower*
Age of Youngest Borrower
Faded portion of bar represents the estimated reverse mortgage funds
This information is provided as a guideline and does not reflect the final outcome for any particular homebuyer or property. The actual reverse mortgage available funds are based on current interest rates, current charges associated with loan, borrower date of birth (or non-borrowing spouse, if applicable), the property sales price and standard closing cost. Interest rates and loan fees are subject to change without notice. Following the closing of the home purchase, no further principal or interest payments will be required as long as one borrower occupies the home as their primary residence and adheres to all HUD guidelines of loan. Borrower must remain current on property taxes, homeowner’s insurance (and homeowner association dues, if applicable), and home must be maintained.
Then What Happens?
Your client enjoys the same terms for any home with a reverse mortgage loan:*
Never have to make monthly mortgage payments unless they want to
The home is theirs, in their name, and no one can make them leave
Simply pay homeowner’s insurance, property taxes, and maintain the home
Want to Learn More About Reverse Mortgages in General?
Our Video Series For Builders
Learn What You Need To Know About Reverse Mortgages.
Find Out More About RMS.
Please fill out the form below and we will be in touch!
* This article does not constitute tax or financial advice. Please consult a tax and/or financial advisor regarding your specific situation.
There are some circumstances that will cause the loan to mature and the balance to become due and payable. The borrower is still responsible for paying property taxes and insurance and maintaining the home. This advertisement does not constitute legal or financial advice. Please consult a legal or financial advisor for your specific situation.