Builder HECM for Purchase Program

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 typically about 45% to 62%, 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, the borrower must meet their loan obligations, keeping current with property taxes, insurance, maintenance, and any homeowners association fees.

Comparing three ways to purchase a new home:

 

 
 
All Cash
 
Traditional Mortgage
 
HECM for Purchase
Why?
  •  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
Why
Not?
  •  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

 

*  As with any home-secured loan, the borrower must meet their loan obligations, keeping current with property taxes, insurance, maintenance, and any homeowners association fees. 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.

Buying a home video?

To learn more, contact me today to get your free H4P Buyer’s Guide.

Larry McAnarney
HECM for Purchase Specialist, NMLS #21059
Call 815-703-4745 | Lmcanarney@reversefunding.com

Branch NMLS # 1404799
700 Commerce Drive, Suite 5055
Oak Brook, IL 60523

Verified Reviews

(67)

Thanks Again Larry treated me very well and helped me go thru the indepth process!!! Thanks again

W Hammond — Sep 7, 2015

Highly Impressed Upon my initial conversation with Larry I was highly impressed along with his credentials. As I continued to work along with him in obtaining all the documentation Larry requested, he came across some huge hurdles regarding my financial situation, but managed to resolve ALL  and was able to successfully acquire a reverse mortgage for myself. I cannot thank Mr. McAnarney enough for providing me with a comforting financial lifestyle.  Larry truly left me with a lasting and positive impression while accomplishing all that he could for me.  Emotionally now, I can see the light at the end of the tunnel. If you are looking to take the next step to financial security and peace of mind, I highly would recommend the very ultimate and polished man in his field, Mr. Larry McAnarney.

Donna G — Apr 4, 2017

Worked well for us! My wife and I had been discussing reverse mortgage for some time. We had heard all the pros and cons of doing this type of mortgage and the pros won out. We have a house that was built in 1976 and we have been in it since 1991. We have really done no updates on it and it was really needing some remodeling. We were just not able to afford all the stuff that it needed. We could not find anyone in our area that did reverse mortgage so I got on the internet and did some searches. A few days later I got a call from Larry McAnarney. I told Larry that I came from the "old school" and was use to doing business face to face, but since he was in Illinois and we were in Texas it made it a little difficult. However, to make a long story short, Larry explained everything to our satisfaction and we started the process. We had to go to a counseling session so that we understood the process. After that it was pretty simple. Thanks to Larry McAnarney.

Joe G — Apr 14, 2015

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This material has not been reviewed, approved or issued by HUD, FHA or any government agency. The company is not affiliated with or acting on behalf of or at the direction of HUD/FHA or any other government agency.

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