Real Estate Agents, Exciting news for your homebuyers over 62

I’m thrilled to share some exciting news that may help both you and your clients. The HECM for Purchase program has recently undergone changes, making it even more accessible and beneficial for those over 62 looking to buy a new home with a reverse mortgage.

Here's a breakdown of the key updates:

1. Contributions for Borrower's Fees: Your clients can now receive contributions of up to 6% toward specific fees from interested parties, such as sellers, builders, and more. This financial assistance can significantly ease the burden of purchasing a new home.

2. What the 6% can Cover: The 6% contribution can be used to cover various costs, including origination fees, closing-related expenses (like credit reports and appraisals), prepaid items, discount points, interest rate buy-downs, and even the initial mortgage insurance premium.

3. Additional Funding Sources: Your clients have more options to cover their part of the deal, gift fund, disaster relief grants, and employer assistance. These sources are in addition to their savings, assets, and the HECM loan itself.

4. Premium Pricing Credits: If your clients receive a special deal from their mortgage provider or a third-party originator, it won't count toward the 6% limit, as long as they're not involved in the sale or development of the property.

5. Seller-Related Fees: Fees that sellers typically handle, like real estate agent commissions and the purchase of a home warranty policy, are already allowed and won't affect the 6% contribution limit.

These changes are designed to make the home buying process simpler and more affordable for your clients, which can be a significant selling point. If you have clients who are considering buying a new home, these changes in the HECM for Purchase program could be a valuable resource for them.

Please don't hesitate to reach out to me. I’m here to assist you in guiding your clients through this exciting opportunity.

This material is not from HUD or FHA and has not been approved by HUD or any government agency.The reverse mortgage borrower must meet all loan obligations, including living in the property as the principal residence and paying property charges, including property taxes, fees, hazard insurance.? The borrower must maintain the home. If the borrower does not meet these loan obligations, then the loan will need to be repaid. We do not establish an escrow account for disbursements of these payments. A set-aside account can be set up to pay taxes and insurance and may be required in some cases. The loan also becomes due and payable (and the property may be subject to a tax lien, other encumbrance, or foreclosure) when the last borrower, or eligible non-borrowing surviving spouse, dies, sells the home, permanently moves out, defaults on taxes, insurance payments, or maintenance, or does not otherwise comply with the loan terms. Interest is not tax-deductible until the loan is partially or fully repaid. . If you are thinking about debt consolidation, you might want to first consult a non-profit credit counselor. LeaderOne Financial Corporation is licensed by the Arizona Department of Financial Institutions. Mortgage Banker License # - 0918657.?? Corporate Headquarters: 7500 College Blvd Suite 1150; Overland Park, KS 66210, NMLS ID #12007 https://www.nmlsconsumeraccess.org.? Toll Free (800) 270-3416.? This advertisement does not constitute loan approval or a loan commitment. Loan approval and/or loan commitment is subject to final underwriting review and approval.