Can 62+ Seniors pay 33%-60% less cash at closing for a new home?
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Downsizing Senior Home Purchases
WE SPECIALIZE IN FUNDING HOME PURCHASES WHERE QUALIFIED 62+ SENIORS PAY OUT 33% to 60% LESS CASH AT CLOSING. LOOKING TO DOWNSIZE? CALL TO SEE IF YOU QUALIFY.
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Here are examples of how a senior might purchase these homes. These are examples only and not an actual offer to you for financing from CMG
THIS HOUSE WILL COST $340,000 IF YOU DOWNSIZE AND PAY CASH AND YOU WILL HAVE NO MONTHLY PAYMENTS.
WITH A HECM LOAN*, A 70 YEAR OLD BORROWER PAYS $214,000 AT THE CLOSING AND HAS NO MONTHLY PAYMENTS. BORROWER RESPONSIBLE FOR TAXES, MAINTENANCE, AND INSURANCE.
THIS HOUSE WILL COST $450,000 IF YOU DOWNSIZE AND PAY CASH AND YOU WILL HAVE NO MONTHLY PAYMENTS. BORROWER RESPONSIBLE FOR TAXES AND INSURANCE.
WITH A HECM LOAN*, A 70 YEAR OLD BORROWER PAYS $280,000 AT THE CLOSING AND HAS NO MONTHLY PAYMENTS. BORROWER RESPONSIBLE FOR TAXES, MAINTENANCE, AND INSURANCE.
THIS HOUSE WILL COST $675,000 IF YOU DOWNSIZE AND PAY CASH AND YOU WILL HAVE NO MONTHLY PAYMENTS. BORROWER RESPONSIBLE FOR TAXES AND INSURANCE.
WITH A HECM LOAN*, A 70 YEAR OLD BORROWER PAYS $414,000 AT THE CLOSING AND HAS NO MONTHLY PAYMENTS. BORROWER RESPONSIBLE FOR TAXES, MAINTENANCE, AND INSUR.
*THESE ARE EXAMPLES AT 5.625%, NOT AN OFFER FOR A LOAN. YOUR OFFER WITH DIFFER, CALL FOR QUOTE.
Want to Up-Size?
THIS HOUSE WILL COST $1,250,000 IF YOU PAY CASH AND YOU WILL HAVE NO MONTHLY PAYMENTS. BORROWER RESPONSIBLE FOR TAXES AND INSURANCE.
WITH A HECM LOAN*, A 70 YEAR OLD BORROWER PAYS $755,000 AT THE CLOSING AND HAS NO MONTHLY PAYMENTS TIL THEY MOVE OUT OR LAST SPOUSE PASSES AWAY. BORROWER RESPONSIBLE FOR TAXES AND INSURANCE AND MAINTENANCE.
*THIS IS AN EXAMPLE, NOT AN OFFER FOR A LOAN. YOUR OFFER WITH DIFFER, PLEASE CALL FOR QUOTE. EXAMPLE APR 5.625% OTHER FEES APPLY AND WILL BE SHOWN ON QUOTE.
How does it work?
We offer the FHA guaranteed Home Equity Conversion Mortgage to offer seniors the ability to pay 33% to 60% less cash at closing when downsizing and acquiring a new home. Requirements:
- Both spouses must be at least age 62
- Some income is required usually Social Security
- There is no specific credit score or debt limit
Questions and Answers
WHAT IS A HOME EQUITY CONVERSION MORTGAGE?
A Home Equity Conversion Mortgage is an FHA insured loan that allows homeowners age 62 or older to purchase a new home without paying the full cash amount for it. Depending on the age of the youngest borrower, you can pay 33% to 60% less at closing and use the HECM to cover the rest. Like any mortgage, it is a loan on part of the value of your new home.
- You keep ownership of your home
- You do not make monthly mortgage payments
- The loan is repaid when the home is sold, refinanced, or no longer your primary residence
This option is often used to downsize and purchase a home, supplement retirement income, cover medical costs, or eliminate an existing mortgage.
HOW DOES IT WORK?
With a Home Equity Conversion Mortgage
:
- You receive money as a lump sum to cover 33% to 62% of the cost of the new home, the rest you pay as downpayment.
- Interest is added to the loan balance over time
- The amount owed grows, while your loan balance increases, but often less than the value of your home rises, so often your home equity increases over time
- Like you would with a normal mortgage or paid off house, you remain responsible for:
- Property taxes
- Homeowners insurance
- Home maintenance
DO I STILL OWN MY HOME?
Yes.
Your name is on the title, just like with a traditional mortgage.
You can:
- Live in your home as long as it’s your primary residence
- Sell your home at any time
- Leave the home to your heirs
WHAT HAPPENS TO THE HOME WHEN I PASS AWAY?
When the loan becomes due:
- Your heirs may sell the home and keep any remaining equity
- Or refinance or pay off the loan to keep the home
Home Equity Conversion Mortgages are non-recourse loans, meaning:
You or your heirs will never owe more than the home is worth.
IMPORTANT PROTECTIONS /SUGGESTIONS
Home Equity Conversion Mortgages are regulated by the Federal Housing Administration (FHA)
- HUD-approved counseling is required before moving forward
- You are encouraged to include family members in the discussion
Consider:
- Talking with a HUD counselor
- Discussing the option with your family
- Reviewing all alternatives
These steps are designed to protect you and help you make an informed decision.
Common Myths (and the Truth)
“The bank takes my home.”
→ False. You keep ownership.
“My children will be stuck with debt.”
→ False. The loan cannot exceed the home’s value.
“This is free government money.”
→ False. It is a loan that must be repaid.
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Additional Information
This ad is not from HUD or the FHA and was not approved by HUD or any government agency
CMG Mortgage, Inc. dba CMG Home Loans, NMLS ID# 1820 (www.nmlsconsumeraccess.org, www.cmghomeloans.com), Equal Housing Opportunity. Licensed by the Department of Financial Protection and Innovation (DFPI) under the California Residential Mortgage Lending Act No. 4150025. Registered Mortgage Banker with the Texas Department of Savings and Mortgage Lending. To verify our complete list of state licenses, please visit www.cmgfi.com/corporate/licensing
CONSUMERS WISHING TO FILE A COMPLAINT AGAINST A MORTGAGE BANKER OR RESIDENTIAL MORTGAGE LOAN ORIGINATOR LICENSED IN TEXAS, OR TO FILE A CLAIM AGAINST A RESIDENTIAL MORTGAGE LOAN ORIGINATOR LICENSED IN TEXAS SHOULD SEND A COMPLETED COMPLAINT FORM OR CLAIM APPLICATION TO THE DEPARTMENT OF SAVINGS AND MORTGAGE LENDING (SML): 2601 N. LAMAR BLVD., SUITE 201, AUSTIN, TEXAS 78705; TEL: 1-877-276-5550. INFORMATION AND FORMS ARE AVAILABLE ON SML’S WEBSITE: SML.TEXAS.GOV.