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.

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

(163)

A Rocky Road Made Smooth My particular mortgage refinance was exceptionally complicated involving divorce decrees, lawyers and and settlement issues. Cutting to the chase, the situation was handled with professionalism and grace by my agent Larry McAnarney. At times when I felt like ripping my hair out, Larry was there to help each step of the way and keep the loan on track. It was a dedication far beyond what I would have expected. I'd recommend him to anyone seeking a reverse mortgage in a New York minute.

Rob M — Sep 24, 2015

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

W Hammond — Sep 7, 2015

Larry is One of the Best I have always considered myself very comfortable financially. That is until a number of uncontrollable events occurred and most of my remaining retirement assets were in bricks. Fortunately, I met Larry a few years ago and remembered hearing about his experience and knowledge in investments, real estate and the markets in general. Having recently lost my husband I did not want to involve family in personal financial discussions, I called Larry. Larry's patience and experience in clearly explaining my options made him very easy to work with. I never felt rushed to make a decision, even after I was approved and then backed away to look at another lender. He didn't "pester" me. He left me alone to think. I came back because I knew he was looking out for my best interest. I spent my career in sales & marketing and am very familiar with selling a high-end product. Larry is one of the best. He kept the needs of his customer his primary objective. Thanks to Larry I am on my feet again.    

Roberta D — Oct 21, 2021

Read More Reviews