For Realtors

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LEARN MORE TO EARN MORE. Increase your income by utilizing a new and relatively unknown Federal Housing Administration (HUD) loan program that has recently been approved in the State of Texas to help the growing senior market. The Texas Reverse Mortgage Loan Amendment (Proposition 5) was on the November 5, 2013 ballot in Texas as a legislatively referred constitutional amendment. It was APPROVED, making Texas the final State in the Union to support the reverse mortgage for purchase transaction. The first of these loans began closing in early 2015 and the future seems bright.

THE TOP PRODUCERS know more about their industry than others do. They know how to discover and present the best options for their clients. They simply have a larger arsenal of tools to use for every possible situation and often dominate niches underutilized by their competition. The new reverse mortgage for purchase can provide you with another tool to help you sell more homes – it is called the HECM for Purchase and is designed specifically to help growing numbers of retirees and baby boomers purchase new homes. The HECM for purchase allows seniors 62 and older to purchase a new primary residence and take out a reverse mortgage in a single transaction. By doing this, they save money, reduce costs, and finance a home they may otherwise be unable to afford.

This easy loan program can open a completely new market and give you an advantage to close more deals on higher value properties. Find out more by contacting a local Efinity reverse mortgage specialist who would be happy to help you build your business.

How does that benefit my clients?

Your clients can now purchase a new home for their unique situation – closer to family, single story, downsizing, less upkeep, warmer climate, less expensive, etc. – with the benefits of:

  • Not having to spend all of their liquid cash on the purchase, which leaves extra cash to pay bills, travel, or provide extra funds for retirement planning.
  • Being able to afford a higher valued home without exceeding their budget.
  • Avoiding strict income and credit score requirements to qualify for a traditional mortgage.
  •       Eliminating a mortgage payment altogether in order to live more comfortably, and actually enjoy a stress free retirement.

How does this benefit me?

You now have the ability to:

  • Expand into a growing senior housing market (10,000 people turning 62 every day in the United States for the next 15 years).
  • Obtain more listings as you help seniors either downsize or upgrade accordingly.
  • Obtain more sales as you help seniors who thought they might no longer qualify.
  • Obtain higher sales by helping seniors qualify for more house with less money than they believed possible.
  • Grow your business with happy client referrals in a niche you now dominate.


Eligible Borrowers

The subject property must become the borrower’s principal residence and the borrower(s) must occupy the subject property within sixty (60) days of closing.

The borrower must be 62 years or older. Non-borrowing spouse may be under age 62. Both must attend HECM for Purchase Counseling from an independent HUD approved counseling agency.

Monetary Investment (typically 40-50% of new residence sales price)

At closing, the borrower(s) must provide a monetary investment to satisfy the difference between the HECM mortgage limit and the sale price of the property, plus any loan related fees that are not financed into the loan, minus the amount of the earnest deposit. The older the borrower, the greater the reverse mortgage amount they are eligible to receive.

Eligible Property Types

Both existing and new units must meet HUD eligibility standards. The property may be:

1. An existing single family home

2. A condominium unit that meets HUD requirements

3. A manufactured home that meets HUD requirements

4. A multi-family residential unit as long as the borrower occupies one of the units as their principle residence and has a 2-year history of managing rental properties.

5. A newly constructed residence

Principal Residence

Must be occupied by the borrower for a minimum of 181 days each calendar year.

Married spouses or other co-borrowers may be living apart because one of them is temporarily or permanently in a health care facility; however at least one borrower must be living in the home within sixty (60) days of closing.

Borrower(s) can only have one FHA loan at a time, although some exceptions may apply. All existing FHA mortgages (including HECM mortgages) must be paid off prior to closing.

Income Qualifying

The borrower(s) must be able to maintain the costs associated with the new home financed with the HECM for purchase. These costs may include taxes, insurance, and HOA dues as well as home maintenance costs including snow removal, dock fees, beach access fee, or any fee required to be paid by the homeowner to maintain the property. If the homeowner owns multiple other properties, income qualifications may vary.

They must also satisfy the monetary investment (down payment, closing costs and earnest money) for the reverse purchase transaction.