Discover theReverse Mortgage for Home Purchase

A GUIDE FOR REALTORS TO UTILIZING THE REVERSE MORTGAGE PURCHASE LOAN

TO INCREASE SALES AND LISTINGSand Dazzle Your Clients!!

By Maggie O’Connell, The Federal Savings Bank,

Reverse Mortgages 800-489-0986

Learn More to Earn More

A reverse mortgage tool to help you sell more homes and get more listings. The reverse mortgage purchase program is largely unknown among Realtors so you can dazzle your older clients by informing them of this great new program!

Many retirees would love to move but feel stuck because they don’t have the resources to get into a newer, more suitable home. Living closer to family members, moving to a single level home, moving closer to services… the reasons are many for older people to move.

The HECM for Purchase is designed specifically to help growing numbers of retirees purchase new homes. It allows people who are at least 62 years old to purchase a new primary residence and take out a reverse mortgage in a single transaction. By doing this, they save money, reduce costs, and finance a home they may otherwise be unable to afford.

This easy loan program can open up a whole new market and give you an advantage to close more deals on higher value properties.

Reverse Mortgage Basics A reverse mortgage or HECM (Home Equity Conversion Mortgage)

is an alternative mortgage option for borrowers age 62 or older. The key feature is NO REPAYMENT IS REQUIRED until the last remaining homeowner leaves the home permanently or the home is sold. It is basically a negatively amortized loan as the interest and mortgage insurance charges add on to the balance over time.

A reverse mortgage is non-recourse, the borrower or their heirs will never have to pay more than the value of the home when the maturity event takes place. Owner or heirs receive remaining equity.

They are very much like

conventional loans.

A deed of trust is recorded

as the security instrument,

borrowers must keep property

taxes paid and home maintained.

Homeowner remains on title.

Benefits for your Clients Not having to spend all of their liquid cash on the

purchase Being able to afford a higher valued home without

exceeding their budget Avoiding strict income and credit score requirements

to qualify for a traditional mortgage Not having to make monthly payments for as long as

they live in their home

We we’re able to finally purchase our dream home and couldn’t have done it without the reverse mortgage.

- Mr. & Mrs. B California

“

”

Benefits for Realtors!Expand into a growing senior housing market

(8,000 people are turning 62 every day in the US)

Obtain more listings as you help seniors either downsize or upgrade accordingly

Example SELL A CLIENTS HOMESell your clients existing home $300,000. Pay off $100,000 mortgage = $200,000 cash.

PURCHASE A NEW HOMEClient finds a new home $400,000. Uses $200,000 from the sale of their home and reverse mortgage provides remaining funds. Happy client is in their new home and got rid of mortgage payments!

Note: Older people will receive more funds from the reverse mortgage therefore down payment would be

smaller.

Don’t let your clients only dream about owning a new home…. make it a reality

for them!

Read: Kiplinger.com article: Buy a Home With a Reverse Mortgage

LEARN MORE!

Important Details to Know

Borrower’s must receive counseling first No Seller Concessions Are Allowed Seller must do repairs called out on inspections Buyer pays most costs so write the offer accordingly Higher down payments are required so get the calculations initially Request buyer selects Title Company so we can use escrow

officer experienced in this product Have us review the offer prior to presentation

Questions & Answers

Q: What is needed for the complete purchase contract?A: Fully Executed Sales Contract, FHA Real Estate Certification, FHA Amendatory

Clause, Property Condition Disclosure, inspection reports Q: Are gift funds allowed?A: Yes, include a gift letter, verification of funds & proof of transfer.Q: What types of properties are acceptable?A: SFR, 2-4 unit, Townhomes, FHA approved Condos – OWNER OCCUPIED!Q: How do borrower’s find a reverse mortgage counselor?A: Click the link to get the HUD Counseling List.Q: How do you determine the down payment requirement?A: It is based on the age of the youngest borrower, value of the home and current

expected interest rate. To get accurate calculations, call Maggie O’Connell at 800-489-0986

Myth: The bank owns the home!

Fact: Just like other mortgages, the owner remains on title at all times.

Myth: Reverse Mortgages are expensive.

Fact: Similar cost to all FHA loans and borrower doesn’t have to make mortgage payments – that’s affordable!

Myth: You can end up owing more than the house is worth.

Fact: FHA mortgage insurance covers any deficiency. This is a non-recourse loan.

What about all the ‘stuff’ you hear about reverse mortgages???

What are you waiting for?Start telling your clients about

Reverse Mortgages!!

and call Maggie O’Connell 800-489-0986

ReverseMortgageStore.com

675 Sierra Rose Drive #113 Reno, NV 89511

383 Diablo Rd. #220 Danville, CA 94526

NMLS # 279499 / 411500