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Reverse Mortgage for a Home Purchase

By
Industry Observer with Retired

Reverse Mortgage for a Home Purchase

We received this email from Chris Warner, a Reverse Mortgage Consultant at MetLife Home Loans.  With the rapidly growing population of seniors with special needs, every real estate professional needs to be aware of the benefits of using a reverse mortgage for the purchase of a more suitable primary residence. 

If you are a real estate professional and are not familiar with using a reverse mortgage for a home purchase, you should make immediate contact with a trusted reverse mortgage consultant.


“Just a reminder here at the beginning of the year about the "HECM for Purchase" program. Advertising this program to prospects will result in more listings and sales of all types, not just HECM for Purchase.

Let your prospects who are 62 or older know that they can purchase a primary residence and then have no mortgage payment for as long as they live in this home and without having to use all of their cash for an "all cash" purchase.

For instance, they could buy a condo for $200,000 with a downpayment of $85,000* and minimum underwriting*; or,

Downsize to a "right-sized" property; or, move to that resort area they have always desired; or, buy a newly constructed home and add those extras they didn't think they could afford; or, even "up-size" to a larger home.

If you want to know more I'll be happy to meet with you individually or in a group to discuss how the HECM for Purchase will attract new listings and sales.

Chris

* Assumes a 66 year old. Underwriting is to ensure that the borrower has sufficient cash flow from the HECM and/or assets to continue to pay property taxes, homeowner's insurance and to maintain the property. Down payments are based on current interest rates, appraised values and the age of the youngest borrower on title.”


CHRIS WARNER
Reverse Mortgage Consultant
NMLS ID 506543
MetLife Home Loans
Phone: 202-560-2931
Secure Fax: 518-953-1655
jcwarner@MetLife.com

Dahlias in Kentlands IMG_0183

Photograph by Roy Kelley using a Canon PowerShot G11 camera.

Roy and Dolores Kelley Photographs

Posted by

Roy Kelley, Retired, Former Associate Broker, RE/MAX Realty Group

Gaithersburg, Maryland  

Show All Comments
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

Good Afternoon Roy,  Reverse mortgages are a wonderful thing for a lot of home owners and home purchasers. Theyhave a wonderful ability to lay out the costs of a revers mortgage vs a convention mortgage. This is great advice Roy, Have a great Sunday

Jan 08, 2012 06:39 AM
Yolanda Cordova-Gilbert
Richmond, TX

Roy,

        It sounds like you would need a program much like a mortgage calculator to figure out the minimum down payment. Reverse mortgages can be a wonderful thing if people can manage their assets; the same thing can be said for those interest only loans. Good post Roy!

Jan 08, 2012 06:46 AM
Roy Kelley
Retired - Gaithersburg, MD

Thanks for your comments, Scott. I hope your comments will encourage real estate professionals to gain the knowledge they need to property advise the seniors among their clients.  In Maryland, we are finding that too few real estate agents provide reverse mortgage advice.

Thanks for your remarks, Yolanda.  The reverse mortgage lenders have calculators on their websites.  The maximum loan amount is determined by the ages of the applicants and the FHA loan limits in the local market.

A reverse mortgage can improve the quality of life for seniors with lots of equity but a limited income.  There are no income or credit requirements and no mortgage payments for life. 

Dahlias in Kentlands IMG_0181

Photograph by Roy Kelley using a Canon PowerShot G11 camera.

Roy and Dolores Kelley Photographs

 

Jan 08, 2012 06:49 AM
Deborah Byron Leffler BzyBee Real Estate Lady!
Keller Williams Realty Boise - Nampa, ID

I have always thought that they were an interesting option.....none of my clients have felt that it was right for them thus far.....But I did hear that some changes have been made to the program in recent years! 

Jan 08, 2012 07:10 AM
Roy Kelley
Retired - Gaithersburg, MD

Hi Deborah:  You clients will not be able to make good decisions on reverse mortgages unless you have current information to share with them. If you work with seniors, now is a good time for an update.

Dahlias in Kentlands IMG_0182

Photograph by Roy Kelley using a Canon PowerShot G11 camera.

Roy and Dolores Kelley Photographs 

Jan 08, 2012 07:27 AM
Charles Stallions Real Estate Services
Charles Stallions Real Estate Services Inc - Gulf Breeze, FL
Buyers Agent 800-309-3414 Pace and Gulf Breeze,Fl.

We are doing them on new homes as well, great for sales but IMHO the familes may regret this when their children have no inheritence

Jan 08, 2012 09:10 AM
Roy Kelley
Retired - Gaithersburg, MD

Thanks, Joyce.  We have to first take care of the living.  Many children are not willing or able to provide funding needed by the parents.

Dahlias in Kentlands IMG_0179

Photograph by Roy Kelley using a Canon PowerShot G11 camera.

Roy and Dolores Kelley Photographs

Jan 08, 2012 09:27 AM
Roy Kelley
Retired - Gaithersburg, MD

We have rainy weather in Maryland. Have a great day and an outstanding week.

Aug 29, 2017 06:00 AM
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