Reverse mortgage for home purchasesA new financing opportunity for purchase transactions.

Carlos A. Camargo Reverse Mortgage Specialist

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Trusted leadership you can count on -meeting the needs of senior homeowners

As the nation’s leading retail originator of reverse mortgages, Wells Fargo is committed to helping seniors age 62 or older use the equity in their homes to realize financial independence and peace of mind.

Now with the new reverse mortgage for purchase program, count on Wells Fargo to help provide a new home financing option.

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Table of contents

What is a reverse mortgage?

What is the Home Equity Conversion Mortgage (HECM) for Purchase?

How can it help senior homebuyers?

Examples of a HECM for Purchase transaction

Frequently asked questions

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What is a reverse mortgage?

A reverse mortgage is a non-recourse loan that enables homeowners — age 62 and older — to convert a portion of your

home’s equity into tax-free1 funds

There are no income, health, employment, or credit-score

qualifying requirements2

The amount of funds you can qualify for is based on your age, the property’s value, and current interest rates

Funds may be obtained in a lump sum, monthly payments, a line of credit, or a combination of any of these options

Applicants must agree to participate in a counseling session with a HUD approved agency

1. Consult a tax advisor2. Loan proceeds are not considered income and will not affect Social Security or Medicare benefits. Monthly reverse mortgage advances may affect borrower eligibility for other programs. Consult either a local program office or an attorney to determine how, or if, monthly reverse mortgage payments might affect a specific situation.

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Reverse mortgage for purchase

What is the Home Equity Conversion Mortgage (HECM) for Purchase? An FHA-insured reverse mortgage

Enables senior homebuyers, age 62 or older, to purchase a new primary residence and obtain a reverse mortgage in simultaneous transactions with no monthly mortgage payments

Allows you to combine reverse mortgage proceeds with a down payment from your current home sale or other assets, to purchase a new home

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Reverse mortgage for purchase

How can it help you? Purchase a new home without taking on a new monthly

mortgage payment

Purchase a primary residence suitable for their current needs

Purchase a home in a senior housing community

Move into a new home that’s easily accessible with modern amenities

Downsize to a smaller, easier-to-maintain home

Relocate closer to friends and family members

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Reverse mortgage for purchase

How does the program work? Step one:

Gloria and Ted Palmer, both 74, want to buy a more accommodating single-story home

They work with real estate agent Jane Mills to sell their current two-story home

In a separate transaction, they look into buying a new single-story home in a housing development being built by Bill Davis

The Palmers meet with Mills and Davis and look at several homes priced at $300,000

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3. Actual loan amounts available depend on the rates in effect when a loan is closed and the actual origination fee and closing costs charged, the appraised home value and current equity loan limits in your county.

Reverse mortgage for purchase

How does the program work? Step two:

Mills introduces the Palmers to Carlos Camargo, a Reverse Mortgage Consultant with Wells Fargo Home Mortgage

Reynolds shows the Palmers how the reverse mortgage for purchase could provide the additional funds they’ll

need3

Purchase Price $300,000

Reverse Mortgage Proceeds $177,002

Cash Required To Close $123,000

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Reverse mortgage for purchase

How does the program work? Step three:

The Palmers combine the $123,000 from the sale of their departure home, as a down payment with the $177,000 reverse mortgage to purchase a new home for $300,000 — and have no monthly mortgage payments!

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4. These are examples of what sources may or may not be used to cover the cash required to close. For detailed information please contact your Reverse Mortgage Consultant.

Frequently asked questions

What sources are allowed for the cash required to close?4

The sale of the departure home

The sale of the homebuyer’s other assets

The homebuyer’s savings

What sources cannot be used for the cash required to close? Seller financing and concessions

Cash withdrawn from credit cards

A bridge loan of any kind

Subordinate financing

Gift money from parties involved in the transaction

Down payment assistance programs (DAPs)

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Frequently asked questions

What property types are eligible? Single family HUD-approved condos Planned unit developments (PUDs) Two- to four-unit properties

(one must be owner-occupied) Manufactured homes built after June 15, 1976

What property types are not eligible? Co-ops Second homes Boarding houses Bed and breakfast establishments Manufactured homes built before June 15, 1976 and any on leased

land

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Frequently asked questions

What requirements must the new home meet? Must become the buyer’s primary residence

Must be occupied by the buyer within 60 days from closing date

Construction must be complete, the property habitable, and a certificate of occupancy or its equivalent issued prior to the loan application

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Essential facts

Enables homebuyers age 62 or older to purchase a new home without taking on monthly mortgage payments

Reverse mortgage customers receive title to and own their new home

The sale of a departure home is a completely separate transaction from the purchase transaction and reverse mortgage for purchase

Reverse mortgage is placed on the new primary residence

Reverse mortgage proceeds will be calculated based on the youngest homebuyer’s age and the lowest value of either the new home’s sale price or appraised value or the national HECM lending limit

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Industry leader

Well Established. Well Respected. Wells Fargo.

For over 155 years, the Wells Fargo name has stood for reliability; integrity and pioneering progress that helps people manage their money and grow their assets. As part of the Wells Fargo & Company family, Wells Fargo Home Mortgage can provide easy access to banking, insurance, investment and consumer finance services to help our valued customers achieve their current and long-term financial goals.

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Information is accurate as of the date of printing and is subject to change without notice. Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. © 2009 Wells Fargo Bank, N.A. All rights reserved. 105091 3/09

For more information

Contact information

Carlos A. Camargo

805-985-2808 Office Phone

818-324-3802 Cell Phone

Carlos.A.Camargo@Wellsfargo.com

www.Carlos4Reverse.com