Increase Sales with a Reverse Mortgage for Home Purchase
Throughout Danville and all of California
How many of you wish you could increase the number of homes you sell this year?
How many of your home sales fall apart because the borrower did not qualify?
How many of your customers prefer a nicer home than their budget allows?
In this blog, I will be discussing these questions and other related issues for Realtor's in Danville and throughout all of California. We will talk about:
- A simple way to increase the number of homes you sell this year by simply being aware of a couple of new Reverse Mortgage for Home Purchase options. These options actually create home sale opportunities where they did not previously exist.
- Ways to insure that your borrower does not get turned down for insufficient credit or less than perfect debt or income ratios by utilizing the Reverse Mortgage for Home Purchase program.
- How your client who wants that higher priced home may be able to afford it with a Reverse Mortgage for Home Purchase product.
This blog will help you build a stronger business, sell more homes, create huge loyalty and referrals from your customers, and will be educational and occasionally entertaining. I hope you will stay tuned and enjoy the adventure with me.
Let's get started...
We are talking about a targeted audience - Senior Homeowners/Borrowers. By utilizing the Reverse Mortgage for Home Purchase program, (FHA and HUD approved), seniors are provided with a way to downsize easily, and as a result the Realtor closes more transactions.
The program was designed to allow seniors the option of purchasing a new principal residence by utilizing a reverse mortgage instead of a traditional mortgage to purchase
the home. This is also attractive because at this time, credit scores, income, and debt ratios are not considered in granting the reverse mortgage. This program makes it easier for senior homeowners to relocate (be closer to family members) or downsize to more age appropriate homes.
Let's look at this hypothetical situation:
The wife lives in Lafayette in a home once worth $1.8M, then $1.5M, and now maybe $1.M. Everything was fine as long as her husband's pension and annuities were still making the $800,000 mortgage. But recently her husband died, and now she doesn't have enough income to make ends meet. She lives in fear of eventually losing her home, because she knows it's just a matter of time before she runs our of money. What does she do about her situation? Nothing! Why? Because she believes she is stuck in her own private agony without any possible solution. I suspect that there are quite a few seniors in this same situation who are afraid to reach out for help until it's too late.
What can be done?
Let's pretend that upon the sale of her property, and after she pays off the mortgage and deducts capital gains and costs, the senior receives a net "profit" of $150,000 or maybe $200,000. She fears this is not sufficient to live anywhere nearby without a huge mortgage. However, the informed Realtor has a solution.
By taking the $150,000 and using a reverse mortgage to finance the balance of a new home purchase, we can help her buy a home valued between $300,000 to $450,000. And, she doesn't have a monthly mortgage payment as a result. Plus we didn't have to deal with credit scores, debt or income ratios. Why? Because this is a reverse mortgage. In this scenario, if her net profit was $200,000 from her home sale, she now would have $50,000 extra for a savings account, or she could purchase a nicer
home valued up to $600,000.
So what just happened? With your help, she found a new home to enjoy in her retirement years, and she doesn't have the worry of being foreclosed upon for non-payment of a mortgage. (She must however, maintain her home in a habitable condition, keep current on her property taxes and keep adequate current homeowner's insurance). Now you have a happy client that is in a "safe" financial position, and living in a new home. Without the reverse mortgage this senior was in jeopardy of losing her home and suffering in her own private agony. You solved her problem and created two (2) sales where not even one sale existed previously. All without credit scores, debt ratios and income considerations.
How many seniors are on your list in similar situations that need to hear from you so you can help?