HECM for Purchase: An Under Used Tool for Older Adults. Reverse mortgages haven’t lived up to expectations, that doesn’t mean there hasn’t been visible success with the HECM for Purchase program. It is still one of the resources that older adults and realtors use the least. However, the possible boost would help loan originations and home sales.
Even though not many Millennials are buying homes, they tend to dominate the national conversation about real estate. Still, about a quarter of all buyers are over 60.
In the United States, there are 75 million baby boomers and 80% of them already own their own homes. From a realtor’s point of view, older homebuyers are different from younger ones in since they have their unique challenges and benefits.
That is why the Senior Real Estate Specialist designation exists. A perk to being an SRES is you’re not only going to get a purchase — you’re going to get the sale of their existing home. Knowing a reverse mortgage specialist is a great place to start if you are not SRES certified.
How do HECM for Purchase Help
HECM for purchases can help older adults who are going through “grey divorce.” This is when an older couple decides to end their marriage. This usually results in selling the family home because it has too much emotional baggage.
Specialists knowledgeable about the HECM for Purchase can assist the realtor in helping both individuals. This program can help people buy a home they couldn’t afford otherwise and back on their feet.
HECM for purchase is distinctly different from traditional HECMs (Reverse Mortgages). HECM specialists have pointed out that this product caters to a different potential user than a regular HECM.
Buyers will be interested in this option since the HECM for Purchase allows them to pay a portion of the total purchase price of the house.
With the rising cost of living in hot markets like Los Angeles, older couples may be unable to afford the next move. Usually due to not having enough money from selling their home.
For realtors who find their older clients in a similar situation, Hecm for Purchase is a possible option.