Gerald Morgan had been living in the 1 bedroom apartment in downtown Detroit for the past 7 years. The 62 year old semi-retired truck driver was making ends meet but the apartment wasn't where he wanted to relax when he officially retired and got off the road next year.
Looking out his apartment window to the vacant building across the street wasn't his idea of a room with a view. Constantly hearing other tenants in his building flushing toilets and slamming doors, he new he wanted someplace better to live. But what could he afford on his part-time income other than where he was, he frequently asked himself.
Gerald dreamed of owning a home. He was never in a good position financially to ever afford a home of his own. Plus, being gone on the road trucking for days didn't make it feasible for many years. But those days were now behind him and he really wanted something better for himself, something he could call his own when he retired.
One day recently Gerald was reading an article from AARP. The article went on to mention a fantastic mortgage program subsidized by the government for seniors called a reverse mortgage.
The article talked about the Michigan real estate doldrums and how this program was really a benefit to seniors in Michigan's Wayne, Macomb and Oakland counties who always wanted to own a home but never had an opportunity to do so before. Now they could.
The more Gerald read the more excited he got. He could get into a home with lots of built-in equity that he'd never have to make a house payment on for as long as he lived in the home, and, he could use that equity to supplement his income anytime he wanted and all he ever had to do was be able to afford to pay the taxes and insurance on the house every year. He could even use some of that money to take a vacation to Arizona every winter to visit his kids and grandkids.
Gerald picked up the phone and called the number at the end of the article.
He was told that one of the requirements was he had to first meet with a certified HUD counselor as a formality, he had to be at least 62 years old, and his credit wasn't an issue because the Mortgage Company isn't looking to get payments on the home. The loan is based on the equity in the home, which must be a single family residence (up to a four-unit) and be the primary residence of the senior homeowner.
Gerald was told it takes roughly 60-90 days to close the deal once he finds a home he likes. The home must meet HUD's minimum standards, of course, and he was told he was already pre-qualified for a reverse mortgage that was guaranteed by the Federal Housing Administration and funded by Fannie May. His day couldn't get any better.
At 62, Gerald's hopes and dreams were becoming a reality before he even hung up the phone that day.
The representative on the phone told him the same thing he read in the AARP article. He confirmed there were no out-of-pocket expenses, no house payments, no loan payments, and no income requirements. His Social Security and Medicaid benefits wouldn't be affected either.
All the benefits of a reverse mortgage were becoming clear to Gerald now and why he read they were becoming one of the fastest growing financial products in the country.
All his questions were answered and he was now a man with a new purpose in life. No more paying rent, no more feeling sorry for himself for his past credit mistakes. It no longer mattered.
With this reverse mortgage program for seniors over 62 he was able to buy a house finally after years of struggling just to pay the rent. He fell in love with a remodeled 3 bedroom, fenced in yard with his own garage in a quiet neighborhood on a tree-lined street. The best part is it came with over $50,000 in built-in equity that Gerald can tap into whenever he wants, for whatever he wants, and never has to worry about paying anything back.
Next winter Gerald has made plans to spend 2 months in Arizona, something that would never have been an option for him living in his tiny apartment just a few short months ago, thanks to the relatively new reverse mortgage program for seniors over 62 guaranteed by the FHA, HUD and Fannie May.
We currently have properties available in Wayne, Macomb, Oakland counties that have been qualified by HUD to meet the criteria necessary for this program. If you, or someone you know is 62 or older and desires to live in the 3 counties above, please drop me a line and we can set you up with a brief HUD counseling session over the phone to qualify you. Gerald Morgan did it and so can you. It's really that easy!