Everyone has heard of Reverse for Purchase, but many realtors don't consider Reverse to Sell.
A Reverse to Purchase is a Government insured loan for home buyers 62 or older that can make a large downpayment. A good ballpark is if the buyer is only 62 they will qualify for a loan of about 45% of the purchase price up to the current temporary loan limit of $625,500, the older the buyer is, the greater of a loan percentage they will qualify for. The benifits are that the buyer or buyers will have No payments for the rest of their lives. There is also no income qualifications (which is the problem with most purchasers) and no credit check. Hopefully potential buyers age when over 62 is starting to light off a few sparks for you.
The sparks that normally don't go off are a Reverse to Sell, this is when you list a dilapidated property for a senior that is over the age of 62. Many seniors have a hard time keeping up with renovations and just maintaining their property. When you mention what you would like to see them change or update to help sell the house they have no money, or are possibly even selling because they are in foreclosure. You are the expert that knows that with about $30,000 in renovations and landscaping you will be able to get them $70,000 more of a sale price, and you will be able to sell the property much faster without trying to keep the potential buyers from looking at the kitchen too long.
If the seller has the equity and are over the age of 62 they qualify. If the loan makes sense to them to do this pretty much nothing can stop them, the loan even allows for a cost to cure. The biggest catch with Reverse Mortgages is the cost, well timing is everything and right now is the perfect time. Due to very high demand, low rates and lack of supply (the banks are paying high YSP for the lowest floor rate) we are not even charging an upfront origination fee (most lenders charge the max or $6,000) The lenders have even droped the servicing fee which saves the borrower another 4 to 5K. Also it is ok for the property to have been on the market yesterday, take it off to close, and you can put it right back on while you are renovating.
A great website I found to get basic reverse info is: www.nwreverse.com
Thanks for reading,
Zach Boyle
Nationwide Equities
516-612-7000
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