Took a super CE class today trying to get familiar with the "dusty" reverse mortgage program. I'm only 41 and dont' know how many senior citizens I'll be working with but I realy feel I found a nugget that I can pass along to someone who might really need this product. It's not for everyone, but with more and more baby boomers entering the market everyday, it's going to be back in action for sure. In fact, some estimates show that 2 out of 10 mortgages are going to be RM.
Some quick info:
- Must be 62 (if couple, both must be 62)
- Must live in the house
- No income requirements
- No credit check
- No health checks
- Amount of loan based on age (youngest), interest rate, and appraised value
- Money from program is tax free...medicaid recipients are special circumstance
- There are counseling requirements before application
- Different rate options fixed/variable
- Money distribution is flexible
- You never owe more than the value of the home (FHA insured-no person liability)
- The heirs of estate receive all equity after sale and loan satisfied
- Fees, origination, and CC are biggest downfalls
With the fastest growing segment of housing in GA being the 50+ market coupled with the statistics that more and more seniors are wanting to stay in their homes (not enter nursing/assist. living quarters) and they are looking for secure ways to have emergency funds and money to pay taxes, insurance and repairs...this is a great option to offer. We were told the first step to a reverse mortgage is education...getting the agents informed...the process is underway!
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