T
he Home Equity Conversion Mortgage (HECM) for Purchase program has long been touted by reverse mortgage professionals as a way to expand their business. This program allows older homeowners to use a reverse mortgage to purchase a new home, but it requires a significant down payment compared to traditional mortgages.

    While the HECM for Purchase program offers flexible repayment options and can be financed with sale proceeds from the previous home, its penetration rates among total HECM endorsements are extremely low. However, real estate agents who have worked with the program say there's a genuine opportunity to build strong business relationships.

    For Lisa Di Pasquale of Silvercreek Realty Group in Idaho, attending a class on HECM for Purchase taught by Curtis Mangus was instrumental in learning about the program. She found that it was particularly useful for seniors moving from California to Idaho, where they could utilize their equity to buy a home. By educating her clients about this option, she's been able to sell more homes and make her clients happier.

    Ronnie Hale of Century21 North Homes Realty notes that many real estate agents are receptive to learning about HECM for Purchase but lack understanding of the process. He suggests framing it as a solution to a problem, such as financing a home purchase without income, to help contextualize how the program works.

    Di Pasquale estimates her success rate with clients after introducing them to HECM for Purchase is between 50% and 70%, largely due to higher home values in California. However, she emphasizes that not all collaborative partners are created equal, and it's essential to work with professionals who understand the tool being deployed.

    Hale reiterates the importance of education and understanding the needs of seniors, as well as having a good team and mortgage professional who can structure deals effectively. He warns that agents often lack the educational mindset to move forward with such deals, but emphasizes that this is a crucial aspect of working with HECM for Purchase.