Home Builders Guide

HECM HOME PURCHASE PROGRAMS FOR HOME BUILDERS

There are over 80 million baby boomers. More people would build a new home if they understood the strategic options using a HECM Purchase loan, known as a Reverse Mortgage, to do it. Get educated and know when it makes sense for your customers.

Home builders who partner with Springwater Capital receive unlimited education, current updates and free professional printed materials to provide to clients at any showroom office.

WHY SHOULD YOU OFFER HECM FOR PURCHASE LOAN?

  • Eligible clients can purchase a new home using less money upfront
  • Additional funds can be used for upgrades or more square footage
  • Clients retain retirement funds for other more important needs and lifestyle
  • Some may have a tax-free growing line of credit left to be used for other needs such as paying increasing taxes and insurance, or for property maintenance and other emergencies.
  • Some use a reverse mortgage on their existing primary residence to pay cash for a second home or investment property without making payments again on either, other than taxes and insurance.

The HECM purchase program can be used for existing one-to-four unit properties where construction is completed and a certificate of occupancy is issued. Homes must meet FHA guidelines determined at the time of appraisal.

The following illustration is for education purposes only and assumes a fixed interest rate of 4.99% (6.876% APR) and financed fees in the amount of $13,126.

PURCHASE PRICE

APPROXIMATE DOWN-PAYMENT REQUIRED

  AGE 62 65 70 75 80
$250,000   $132,000 $128,000 $122,000 $116,000 $111,000
$300,000   $156,000 $152,000 $144,000 $138,000 $131,000
$350,000   $181,000 $176,000 $168,000 $160,000 $152,000
$400,000   $207,000 $201,000 $191,000 $182,000 $173,000
$450,000   $232,000 $225,000 $214,000 $204,000 $194,000
$500,000   $257,000 $249,000 $237,000 $226,000 $215,000
$550,000   $282,000 $273,000 $260,000 $248,000 $236,000
$600,000   $307,000 $298,000 $283,000 $269,000 $256,000
$625,500   $344,000 $334,000 $320,000 $305,000 $291,000
Home-Builders

EXAMPLE:

Primary Residence Value: $600,000
Balance Owed on Primary Residence: $100,000
Reverse Mortgage Equity: $300,000
Pays off existing primary residence balance of $100,000.
Uses $150,000 to purchase vacation home.
Has $50,000 left as a growing line of credit to furnish the new home.

HOW DOES THIS HELP YOU?

Understanding and offering a HECM for Purchase program is a great way to increase home sales and provide tremendous value-add to your customers. This includes a powerful financing alternative that literally changes lives for those looking to prolong retirement resources. You will witness some very emotional clients whose lives are changed, literally, because you offered them an alternative that is more affordable and safe. Offering your customers the right financing alternatives allows you to focus on what you do best—building and selling new homes.

WHY SPRINGWATER CAPITAL?

A reverse mortgage is a powerful option for anyone age 62 and over, yet few understand it and too many miss out on its advantages. You want to trust your partner source for HECM financing. We are one of the only firms that focuses exclusively on reverse mortgage strategies with a focus on education and new home purchase strategy. We offer:

  1. Free on-site or online education for your sales team whenever you need it.
  2. Monthly e-mail updates on current trends
  3. Free customer referrals when we meet people who may be building in your area
  4. Free professional printed materials to offer customers at all your showroom sites

HOW DO WE PARTNER?

Call today. We’ll arrange the best time to meet.

Builders

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Contact Info

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    Salt Lake City, Utah 84101
  • Corporate Office 801.426.4786Loan Advisors 855.202.0846
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