Ken Keranen's (kennyarnold) Blog

Age as Part of the FHA Reverse Mortgage Formula

Ken Keranen (Reverse Mortgage Division of HSL) — Mon, 20 Sep 2010 08:14:41 -0700

In order to be eligible for the FHA Reverse Mortgage for Home Purchase Program, a client must be at least 62 years old. If there is more than one person on title, the calculations are based on the age of the youngest. The earliest that a potential client can apply for the program is, from a practical standpoint, 61 years and 10 months allowing for a 60 day closing. I have closed more than one Revers Mortgage loan on a client's 62nd birthday! Here is the actuarial life expectancy table that the Government uses that is built into the HECM formula: Client's age Expected Maturity Approximate Down Payment % ($250,000 selling price) 62 21 years 47% or $117,500 63 20 years 64 19 years 65 & 66 18 years 44% or $110,000 67 17 years 68 & 69 16 years 70 15 years 40% or $100,000 71 14 years 72 & 73 13 years 74 & 75 12 years 37% or $92,500 76 11 years 77 & 78 10 years 79 & 80 9 years 33% or $82,500 81 & 82 8 years 83 & 84 7 years 85, 86 & 87 6 years 88, 89 & 90 5 years 29% or $72,500 With all other things being equal, the older a person is, the more funds that he or she is eligible for and therefore less money needed for a down payment. In order for you to determine the approximate down payment requirements for different valued properties and ages, click on our Down Payment Approximator @ http://www.tinyurl.com/32rxg28.

San Diego Senior Friendly Home - Perfect for A Reverse Mortgage for Home Purchase

Ken Keranen (Reverse Mortgage Division of HSL) — Mon, 13 Sep 2010 15:43:53 -0700

This "Senior Friendly Home" is now available in the wonderful San Diego State University area and close to Cox Arena. This 3 bedroom, 2 bath single level home is perfect for an active senior couple. If you are 62 years of age or older, you can purchase this home without having to pay all cash and still avoid making any payments. I've done the buyer's math for someone who wants to own this great retirement home. It is currently listed for an affordable $475,000. I've calculated how much money would be required as a down payment to make the purchase using the FHA Reverse Mortgage for Home Purchase Program. At age 65, a senior would need approximately $209,100 down and make zero monthly payments. At age 70, a senior would need approximately $192,000 down and make zero monthly payments. At age 75, a senior would need approximately $174,000 down and make zero monthly payments. At age 80, a senior would need approximately $155,000 down and make zero monthly payments. The current interest rate is fixed at 4.99% and the Government tacks on 0.5% per annum for the Mortgage Insurance Premium (MIP). By using a Reverse Mortgage for Home Purchase, it is possible to live right here in a great climate to really enjoy your retirement years! You can find out more about how Reverse Mortgages work and do a calculation on your own by visiting my web site @ www.homeloans.com/ken-keranen. To find out more about this home, please give Prudential CA Realty Realtor John Adamske (DRE #01390852) a call at (619) 929-1932.

Hotmail and G-mail; all contacts and history now lost!

Ken Keranen (Reverse Mortgage Division of HSL) — Wed, 08 Sep 2010 04:15:05 -0700

On September 3rd, both my hotmail and g-mail accounts were slammed shut simultaneously.....period! I've done some stupid things in my lifetime but this one takes a new kind of cake! I must have set up my hotmail account around a decade ago and used a password that I could remember. I've never felt the need to change it so never have. No worms have ever crawled into my computers and I have managed to keep my computer protection services like Norton current. Hotmail had limited capacity in the old days for sending and receiving data so someone recommended that I open up a g-mail account around 6 or 7 years ago. I opened up my g-mail account by having someone invite me. Of course when I did so, I used the very same password that I used with my hotmail account; didn't want to forget it or put a sticky on my computer at work. When asked for a back-up e-mail account, I listed my hotmail account. You are probably beginning to see a pattern here that gets even more idiotic. Not only did I use the same password for both, I incorporated a portion of my name into it. I then ran an easy sequential string of numbers that I wouldn't forget either. 4 letters from my name and 4 numbers in sequence. Stupid! Stupid! Stupid! So when a hacker decided to get into my accounts, he or she must have been smiling as to how easy it was. I thought about setting up a contest to see how many of you could guess my passwords but have thought better of it until I finish changing my password at my bank and other places. If you didn't catch it in my last post, here is the blast that was sent out to all of my hotmail and g-mail addresses that I've had for the past 10 years. "Brutal Experience Need Help!!! I'm writing this with tears in my eyes. I came down here to United Kingdom for a short vacation with my family unfortunately we was mugged at the park of the hotel where we stayed,all cash, credit card and cell phone were stolen from us but luckily for us we still have our passports with us. I've been to the embassy and the Police here but they're not helping issues at all and my flight leaves in less than 3hrs from now but am having problems settling the hotel bill and the hotel manager won't let us leave until i settle the bills, i'm freaked out at the moment. Thanks. Ken Keranen" I'm now working on reconstructing my life on the computer, thinking what other stupid things I've done that I can do something about and working on acceptance. By the way, if any of you can remember (I couldn't) when you set up your account it would be a good idea. It would also behoove you to never, never, use a portion of your name, first or last, in your password(s)!!

My E-mail Accounts now blocked! Hackers sent out message to all!

Ken Keranen (Reverse Mortgage Division of HSL) — Mon, 06 Sep 2010 09:08:02 -0700

This is what my friends, business associates, and relatives with whom I'm in contact through g-mail and hotmail accounts received as a message from me. This is the exact wording, spelling and grammer so no one took it seriously! My son called me and said that he was down at the Western Union office and was wondering where to send the money. Very funny!! "Brutal Experience Need Help!!!! I'm writing this with tears in my eyes. I came down here to United Kingdom for a short vacation with my family unfortunately we was mugged at the park of the hotel where we stayed,all cash, credit card and cell phone were stolen from us but luckily for us we still have our passports with us. I've been to the embassy and the Police here but they're not helping issues at all and my flight leaves in less than 3hrs from now but am having problems settling the hotel bill and the hotel manager won't let us leave until i settle the bills, i'm freaked out at the moment. Thanks. Ken Keranen" This is bad enough but what is really upsetting and unsettling to me is that both e-mail accounts are no longer accessible to me. Both accounts were closed down; bang!!! I am trying to resolve the issue beginning with my Google e-mail account but there is no way to talk with a human being that I can find. One of the questions on the computer generated form to report the problem is; What month, day and year did you set up your account? Maybe I'm just getting old but I really don't remember. I know that it might have been sometime in 2004 but I guessed wrong and so no g-mail. I hope that this nightmare does not happen to any of you!

Sell Low and then Buy Low! - This senior has made his decision!!

Ken Keranen (Reverse Mortgage Division of HSL) — Sat, 21 Aug 2010 14:09:06 -0700

I got a call yesterday from a senior, age 80, who has decided to sell his home in the desert and move back to the coast. Because I'm a Reverse Mortgage for Home Purchase Specialist, a local Prudential CA agent had referred him to me. I am going to be able to work with the agent and help this client. Henry had paid $300,000 cash for his very nice manufactured home in a "senior park" where he owns the land; a fee simple property. Today, that home will only net him $140,000 when it sells and he has priced it in order to sell fast on the advice of his agent. While disappointed in the CMA, he took his agent's advice and priced it right. Now, what he has found is a home in North County San Diego Coastal, CA for $309,000 that would be absolutely perfect for him. It is what I describe as being very "senior friendly". This same home sold for $459,000 around the same time in 2006 when he purchased his current home . He will only have $140,000 available from the home in Desert Hot Springs, CA but it still works for him with no monthly payments. I ran the "Down Payment Approximator" @ http://www.tinyurl.com/32rxg28 for him and it turns out that by using the FHA Reverse Mortgage for Home Purchase program through our bank that he only needs $105,500 down. The proceeds from the loan are an estimated $207,500. He will have no payments to make with the same result to him as having paid all cash. The Prudential CA Realtor is thrilled at the possibility of helping this senior move to where he wants. He also has a chance of making multiple commissions; on the sale of the current home and the purchase of the new one on the coast. I really do like working with Realtors who understand the tremendous potential of this little understood product.

Oceanside, CA "Senior Friendly Home" in Peacock Hills - Make Zero payments w/FHA Reverse Mortgage

Ken Keranen (Reverse Mortgage Division of HSL) — Tue, 17 Aug 2010 12:38:29 -0700

This inexpensive "Senior Friendly Home" is now available in the wonderful North San Diego County 55+ Peacock Hills It is a simply a great community for seniors. If you are 62 years of age or older, you can purchase this home without having to pay all cash and still avoid making any payments. I've done the buyer's math for someone who wants to own this single story 2 bedroom home that has been completely remodeled. It is currently listed for the senior friendly price of only $205,000. I've calculated how much money would be required as a down payment to make the purchase using the FHA Reverse Mortgage for Home Purchase Program. At age 65, a senior would need approximately $91,400 down and make zero monthly payments. At age 70, a senior would need approximately $84,000 down and make zero monthly payments. At age 75, a senior would need approximately $76,200 down and make zero monthly payments. At age 80, a senior would need approximately $68,000 down and make zero monthly payments. The current interest rate is fixed at 5.49% and the Government tacks on 0.5% per annum for the Mortgage Insurance Premium (MIP). By using a Reverse Mortgage for Home Purchase, it is possible to live right here in a great climate to really enjoy your retirement years! You can find out more about how Reverse Mortgages work and do a calculation on your own by visiting my web site @ www.homeloans.com/ken-keranen. To find out more about this home, please go to:http://kentjohnson.prudentialcal.com/CA/Oceanside/92056/homes-for-sale/1713-Peacock-Blvd-52691879

Reverse Mortgage for Home Purchase "Down Payment Approximator" Tool Now Available

Ken Keranen (Reverse Mortgage Division of HSL) — Mon, 16 Aug 2010 17:17:40 -0700

There is a new tool for your computer or cell phone that calculates the approximate down payment a senior (62 or older) would make in order to purchase a home at any value. There are a number of Reverse Mortgage Calculators on the web, but few, if any, actually calculate the estimated cash that a senior needs. With this site you simply enter the value of the home and use the drop down button for the age. The result will be the approximate down and the proceeds from the Reverse Mortgage. The results of the calculations are identical to the one that you can find by going to my HomeServices Lending web site at www.homeloans.com/ken-keranen. If you went to that calculator and others on the web you would key in the data and find out the amount of "funds available to you". You then take this figure and subtract it from the home value. The result would be the down payment needed. What I've done here is to make it much easier and quicker. Here's the short way to get to this new "Down Payment Approximator": http://tinyurl.com/32rxg28. With a Reverse Mortgage, there is no set date of payoff and no monthly payments. The Government (FHA) has promised the senior through the Mortgage Insurance Premium (MIP) that seniors get to remain in their home for the remainder of their life without having to ever make a mortgage payment. For this guarantee, FHA charges a premium of 2% of the value of the property (up to a property value of $625,500) that is rolled into the loan. For the "...Approximator" and also the HomeServices Lending site's calculator, we are taking this premium into consideration and have added an additional $2,000 for other closing costs. The closing costs can and do vary by location and price of the home. I hope that Realtors at least take a look at this new tool.

North San Diego County - 72 out of 100 FHA Condo Recertifications Coming Due 12/7/2010

Ken Keranen (Reverse Mortgage Division of HSL) — Mon, 16 Aug 2010 12:53:50 -0700

HUD's Mortgagee Letter 2009-19 covering the Condominium Approval Process clearly states in Section XIII. that all projects must be recertified after 2 years. The cut off date for those now on the approved list can be found at https://entp.hud.gov/idapp/html/condlook.cfm. The date when the vast majority of condominiums will need to be recertified, assuming there's a buyer, is December 7th of this year, in only 16 weeks. There are currently 100 condominium projects approved in North San Diego County. This covers all of Oceanside, Carlsbad, Encinitas, Del Mar, Cardiff by the Sea, Solano Beach and Carmel Valley. 72 of these projects are set to expire in December. I've noticed that a great number of today's listings of condos indicate that they are FHA approved. This will simply not be true if the FHA case number is ordered after that date. From now on, all approved condominiums throughout the country will expire two years after the re-certification or initial approval date. HUD/FHA wants to make certain that the projects are "still in compliance with HUD's owner-occupancy requirement and that no conditions currently exist which would present an unacceptable risk to FHA". A representative from HUD recently told me that approximately 35,000 projects in the United States will no longer be on the approved list come December 7th. The good news is that certain major lenders are now able to approve the project and are doing so. The approval time for the bank that I'm affiliated with can get them approved in less than 10 days. This time framework assumes that all the information needed is put into the approval package. The reason this is of such high importance to me is that I concentrate on the FHA Reverse Mortgage for Home Purchase Program. In many cases, the most Senior Friendly Homes happen to be condos. Effective today, you can now calculate the approximate down payment a senior needs by going to this site: http://www.danielschafer.com/hosted_forms/calculators-new.asp

Reverse Mortgage for Home Purchase Consultant Cites Sites for Information

Ken Keranen (Reverse Mortgage Division of HSL) — Mon, 16 Aug 2010 10:44:26 -0700

I've been asked to cite sites where the best information can be found regarding Reverse Mortgages especially the Reverse Mortgage for Home Purchase Program. Here's a pretty good place to start: http://www.hud.gov/offices/hsg/sfh/hecm/hecmabou.cfm This site offers a decent explanation of the program in more layman language. It begins with: "The Home Equity Conversion Mortgage (HECM) is FHA's reverse mortgage program which enables you to withdraw some of the equity in your home. You choose how you want to withdraw your funds, whether in a fixed monthly amount or a line of credit or a combination of both. You can also use a HECM to purchase a primary residence if you are able to use cash on hand to pay the difference between the HECM proceeds and the sales price plus closing costs for the property you are purchasing." www.reversemortgageforhomepurchase.com Here, under HUD you can find the two Mortgagee Letters that outline the program along with other information about it. The Q&A tab clears up some of the questions that a Realtor or Potential Client may have. www.homeloans.com/ken-keranen Under the Reverse Mortgage headings one can find and download a guide, do the calculations and learn other good things about Reverse Mortgages. A good tool for you to put on your phone for a quick down payment calculation is the "Down Payment Approximator". I am just today putting it on line for your convenience. That web site for now is: http://www.danielschafer.com/hosted_forms/calculators-new.asp

If a Senior "gets it" that they can use a Reverse Mortgage for Home Purchase; they will buy!

Ken Keranen (Reverse Mortgage Division of HSL) — Sun, 15 Aug 2010 17:12:34 -0700

Working with seniors who are interested in purchasing a retirement home using a Reverse Mortage is a challenge! They begin by thinking that this sounds "too good to be true" and need to be convinced that it does work and that it is guaranteed by the Government. As a Reverse Mortgage specialist, I have to (get to) explain the program not only to the senior but also to the selling agent, the buyers agent and the escrow/title agents. However, when the senior understands that it is very doable and insists on doing it then we're both in for the duration. This new block of buyers understand the leverage they can get without having to pay all cash and still make no payments. The current FHA limit of $625,500 is the maximum amount of the home purchase price (appraised value) to determine the extent of the Reverse Mortgage Proceeds. The following "approximate down payment" percentages is what they are looking at: At age 62 (the minimum): 47% down. At age 65: 44% down At age 70: 40% down At age 75: 37% down At age 80: 33% down You can do the calculations for yourself by going to my web site @ www.homeloans.com/ken-keranen to see how much a senior is eligible for depending on their age and home value. You simply subtract the eligibilty figure calculated from the purchase price that you have loaded in and that becomes the approximate down payment needed. In talking with the few other reverse mortgage loan officers who concentrate on the FHA HECM for Home Purchase Program, they are in agreement with me. We are working with real buyers! It is my opinion that if the Real Estate community studies this program and provides the information to seniors, the program will expand dramatically. Without Realtors helping to educate seniors, the program will continue to be a very small portion of the Reverse Mortgage volume for the foreseeable future. The senior who knows about the program and has learned exactly how it works will buy!

Rancho Bernardo "Active Senior Friendly Home" Zero Payments with a Prudent Down using the FHA Reverse Mortgage Program

Ken Keranen (Reverse Mortgage Division of HSL) — Fri, 13 Aug 2010 16:30:16 -0700

This "Senior Friendly Home" with great views and a huge front and back yard is now available. For someone wishing to move into this wonderful part of San Diego County, you could not find a better value. Rancho Bernardo is simply a great community for seniors! If you are 62 years of age or older, you can purchase this home without having to pay all cash and still avoid making any payments. I've done the buyer's math for someone who wants to own this 4 bedroom home with the master bedroom and full bath on the ground floor. It is currently listed as a short sale for the senior friendly price of only $449,900. I've calculated how much money would be required as an approximate down payment to make the purchase using the FHA Reverse Mortgage for Home Purchase Program. At age 65, a senior would need approximately $199,900 down and make zero monthly payments. At age 70, a senior would need approximately $184,900 down and make zero monthly payments. At age 75, a senior would need approximately $167,400 down and make zero monthly payments. At age 80, a senior would need approximately $149,900 down and make zero monthly payments. The current interest rate is fixed at 5.49% and the Government tacks on 0.5% per annum for the Mortgage Insurance Premium (MIP). By using a Reverse Mortgage for Home Purchase, it is possible to live right here in a great climate to really enjoy your retirement years! You can find out more about how Reverse Mortgages work and do a calculation on your own by visiting my web site @ www.homeloans.com/ken-keranen. To find out more about this home, please go to: http://tempo5.sandicor.com/Pub/EmailView.asp?r=1032397304&s=SND&t=SND

Oceanside, CA "Senior Friendly Home" - Make Zero payments w/FHA Reverse Mortgage

Ken Keranen (Reverse Mortgage Division of HSL) — Fri, 13 Aug 2010 07:44:11 -0700

This inexpensive "Senior Friendly Home" is now available for someone wishing to move into this wonderful part of North San Diego County. Peacock Hills is a great community for seniors. If you are 62 years of age or older, you can purchase this home without having to pay all cash and still avoid making any payments. I've done the buyer's math for someone who wants to own this single story 2 bedroom home that even has a bonus room. It is currently listed for the senior friendly price of only $195,000. I've calculated how much money would be required as a down payment to make the purchase using the FHA Reverse Mortgage for Home Purchase Program. At age 65, the senior would need approximately $87,000 down and make zero monthly payments. At age 70, the senior would need approximately $80,000 down and make zero monthly payments. At age 75, the senior would need approximately $72,600 down and make zero monthly payments. At age 80, the senior would need approximately $64,800 down and make zero monthly payments. The current interest rate is fixed at 5.49% and the Government tacks on 0.5% per annum for the Mortgage Insurance Premium (MIP). By using a Reverse Mortgage for Home Purchase, it is possible to live right here in a great climate to really enjoy your retirement years! You can find out more about how Reverse Mortgages work and do a calculation on your own by visiting my web site @ www.homeloans.com/ken-keranen. To find out more about this home, please go to: http://gerryduarte.prudentialcal.com/CA/Oceanside/92056/homes-for-sale/4712-Mystik-Rd-52849395

San Marcos, CA "Senior Friendly Home" - No Payments w/Reverse Mortgage!

Ken Keranen (Reverse Mortgage Division of HSL) — Wed, 11 Aug 2010 17:18:05 -0700

This "Senior Friendly Home" is now available for someone wishing to move into this wonderful part of North County San Diego. Lake San Marcos is a great community for seniors. If you are 62 years of age or older, you can buy purchase this home without having to pay all cash and still avoid making any payments. I've done the purchasing math for someone to own this single story 3 bedroom, 2 1/2 bath house that shows like new with mountain and golf course views. It is currently listed for only $700,000. I've calculated how much money would be required to make the purchase using the FHA Reverse Mortgage for Home Purchase Program. At age 65, the senior would need approximately $349,250 down and make zero monthly payments. At age 70, the senior would need approximately $326,700 down and make zero monthly payments. At age 75, the senior would need approximately $302,950 down and make zero monthly payments. At age 80, the senior would need approximately $277,900 down and make zero monthly payments. The current interest rate is fixed at 5.49% and the Government tacks on 0.5% per annum for the Mortgage Insurance Premium (MIP). By using a Reverse Mortgage for Home Purchase, it is possible to live right here in a great climate to really enjoy those active retirement years! You can find out more about how Reverse Mortgages work and do a calculation on your own by visiting my web site @ www.homeloans.com/ken-keranen. To find out more about this home, please go to:http://miguelnunezteam.prudentialcal.com/CA/San-Marcos/92078/homes-for-sale/1338-Miracielo-Ct-51507858

La Mesa "Senior Friendly Home" - Zero Payments with a Reverse Mortgage!

Ken Keranen (Reverse Mortgage Division of HSL) — Wed, 11 Aug 2010 10:56:07 -0700

This "Senior Friendly Home" is now available for someone wishing to buy this completely remodeled home in beautiful La Mesa, CA. If you are a senior (62 or older) you can buy the home without having to pay all cash and still avoid making any payments. I've done the purchasing math for someone to own this single story 3 bedroom, 2 bath house with all new appliances, paint and carpeting. It is currently listed for $449,000. I've calculated how much money would be required to make the purchase using the FHA Reverse Mortgage for Home Purchase Program. At age 65, the senior would need approximately $202,350 (44%) down and make zero monthly payments. At age 70, the senior would need approximately $185,800 (40%) down and make zero monthly payments. At age 75, the senior would need approximately $138,350 (37%) down and make zero monthly payments. At age 80, the senior would need approximately $150,000 (33%) down and make zero monthly payments. The current interest rate is fixed at 5.49% and the Government tacks on 0.5% per annum for the Mortgage Insurance Premium (MIP). I find it quite fascinating that seniors often feel that they have to leave Southern California where they want to live to move to someplace far less desirable but more affordable. When you are not making a mortgage payment by using a Reverse Mortgage for Home Purchase, it is possible to continue to live right here! You can find out more about how Reverse Mortgages work and do a calculation on your own by visiting my web site @ www.homeloans.com/ken-keranen. To find out more about this home, go to: http://www.prudentialcal.com/Listing/ListingSearchResults.aspx?Search=9b570915-14e8-41d8-bd3e-92d42314ce04&ListingType=1&MMsgID=&quicksearch=1

San Diego "Active Senior Friendly Home" - with Zero Payments Possible!

Ken Keranen (Reverse Mortgage Division of HSL) — Tue, 10 Aug 2010 09:39:46 -0700

This "Active Senior Friendly Home" is now available for a someone to buy without having to pay all cash and still avoid making any payments. I've done the math for someone purchasing this beautiful 3 bedroom, 2 1/2 bath house in the wonderful community of Stoneridge Village. It is a great value for only $579,000!. I've calculated how much money a senior would need to put as a down payment in order to purchase this home using the FHA Reverse Mortgage for Home Purchase Program. At age 65, the senior would need approximately $254,500 (44%) down and make zero monthly payments. At age 70, the senior would need approximately $233,600 (40%) down and make zero monthly payments. At age 75, the senior would need approximately $211,700 (37%) down and make zero monthly payments. At age 80, the senior would need approximately $188,600 (33%) down and make zero monthly payments. The current interest rate is fixed at 5.49% and the Government tacks on 0.5% per annum for the Mortgage Insurance Premium (MIP). I find it interesting that seniors ofttimes feel that they have to leave Southern California where they want to live to move to someplace far less desireable but more affordable. When you are not making a mortgage payment by using a Reverse Mortgage for Home Purchase, it is possible to continue to live right here! You can find out more about how Reverse Mortgages work and do a calculation on your own by visiting my web site @ www.homeloans.com/ken-keranen To find out more about this home, please go to: http://www.prudentialcal.com/CA/San-Diego/92123/homes-for-sale/3134-West-Canyon-Ave-49532209

Unemployed Seniors Tap Social Security Early - Smaller Home Purchase Also?

Ken Keranen (Reverse Mortgage Division of HSL) — Tue, 10 Aug 2010 08:40:33 -0700

The unemployment picture remains bleak. The Department of Labor put the current rate at 9.5%. Seniors, those over 62, who can't find work and have run the course on their unemployment insurance benefits are throwing in the towel and applying for Social Security. Last year more people applied for Social Security than any other year in history; 2,740,000. What is shocking, at least to me is that 72% of the men and almost 75% of the women applied before full eligibility kicked in. Most of us eligible for early retirement today have to be 66 in order for the full benfit amount to be hit. The question that I have is will these early retirees have sufficient funds to "stay in place" or will they consider moving into smaller, more "senior friendly homes"? I think that many will do exactly that. I made a presentation today for a group of around 50 Realtors many of whom work with seniors. Their feeling is that seniors are looking to downsize but won't be able to pull enough cash out of their current home to pay cash for their retirement home. Of course, my solution is for the senior to list their older family home and then take a portion of the proceeds and put it down on a new home, financing the balance with a FHA Reverse Mortgage. With the Reverse Mortgage for Home Purchase Program they can usually put less than 50% down and still make no payments for the rest of their lives as long as they remain in their home. You can do the calculations for yourself by going to my web site @ www.homeloans.com/ken-keranen to see how much a senior is eligible for depending on their age and home value. You simply subtract the eligibilty figure calculated from the purchase price that you have loaded in and that becomes the approximate down payment needed. I feel strongly that more seniors, those unemployed and those now retired, will continue to look at this as a distinct possibility. However, the Program will never truly get off the ground in a big way unless Realtors understand the program and spread the word.

What constitutes a "Senior Friendly Home"?

Ken Keranen (Reverse Mortgage Division of HSL) — Sun, 08 Aug 2010 12:50:35 -0700

I've been trying to come up with a list of what constitutes a "Senior Friendly Home". Realtors are now asking me to make up Reverse Mortgage For Home Purchase Financing Flyers for them where I present "approximate down payment" calculations for various ages. The down payment needed by older borrowers is less than with those who are younger. With some of the recent requests, I've come to the conclusion that there are really 2 or more categories of "senior friendly". My beginning list of "Active Senior Friendly Home" characteristics is as follows: 1. Single story home with few if any stairs. 2. Not too large of a home but with at least 2 bedrooms. 3. Close to or on a golf course, fishing lake or stream, bicycle paths, tennis courts, etc. 4. Having a club house with activities. 4. Being in a gated community or safe community. 5. Not too far from an airport. 6. A home that does not need any or very few repairs. 7. A home that is qualified for FHA Insurance. My starting list of "Less Active Senior Homes" might include: 1. A single story home with no stairs and wheel chair accessible 2. A small home or condo probably not more than 1,00 square feet 3. Close to a grocery store 4. Close to a hospital and doctor's office 5. On a bus line or in an area of reasonable cabs 6. Being in a community that has a senior center and activities 7. A home that needs no repairs and is qualified for FHA Insurance. I'm going to be thinking about these lists and adding more attributes as time goes on. In my presentations to Realtors, I will be asking them what they think should be added to make this the "Perfect Senior Friendly Home" list. Perhaps the AR community to add to it as well.

San Diego "Senior Friendly Condo" - No Payments with a Reverse Mortgage!

Ken Keranen (Reverse Mortgage Division of HSL) — Sun, 08 Aug 2010 12:00:09 -0700

This "Senior Friendly Condominium Home" is now available for a senior to buy without having to pay cash and still avoid making any mortgage payments. I've done the math for someone who wishes to purchase this beautiful 2 bedroom, 2 bath house in a sunny resort-style community. This home, which is located just one exit north of Qualcom is listed for only $359,900. I've calculated how much money would be required to make the purchase using the FHA Reverse Mortgage for Home Purchase Program. At age 65, the senior would need approximately $158,900 (44%) down and make zero monthly payments. At age 70, the senior would need approximately $146,000 (40%) down and make zero monthly payments. At age 75, the senior would need approximately $132,300 (37%) down and make zero monthly payments. At age 80, the senior would need approximately $117,900 (33%) down and make zero monthly payments. The current interest rate is fixed at 5.49% and the Government tacks on 0.5% per annum for the Mortgage Insurance Premium. It is interesting to me that seniors ofttime feel that they have to leave Southern California where they want to live to move to someplace far less desireable but more affordable. When you are not making a mortgage payment by using a Reverse Mortgage for Home Purchase, it is possible to continue to live right here! You can find out more about how Reverse Mortgages work and do a calculation on your own by visiting my web site @ www.homeloans.com/ken-keranen To find out more about this home, go to: http://www.prudentialcaliforniare.com/prucal/agentprofile/agent.aspx?agentid=104842

Vista, CA "Senior Friendly Home" - No Payments with a Reverse Mortgage!

Ken Keranen (Reverse Mortgage Division of HSL) — Sun, 08 Aug 2010 09:57:40 -0700

This "Senior Friendly Home" is now available for a senior to buy without having to pay all cash and still avoid making any payments. I've done the math for someone purchasing this beautiful 3 bedroom, 2 bath house in the wonderful Shadowridge community. It is currently listed for $499,000. I've calculated how much money would be required to make the purchase using the FHA Reverse Mortgage for Home Purchase Program. At age 65, the senior would need approximately $219,600 (44%) down and make zero monthly payments. At age 70, the senior would need approximately $201,600 (40%) down and make zero monthly payments. At age 75, the senior would need approximately $182,700 (37%) down and make zero monthly payments. At age 80, the senior would need approximately $162,700 (33%) down and make zero monthly payments. The current interest rate is fixed at 5.49% and the Government tacks on 0.5% per annum for the Mortgage Insurance Premium. It is interesting to me that seniors ofttime feel that they have to leave Southern California where they want to live to move to someplace far less desireable but more affordable. When you are not making a mortgage payment by using a Reverse Mortgage for Home Purchase, it is possible to continue to live right here! You can find out more about how Reverse Mortgages work and do a calculation on your own by visiting my web site @ www.homeloans.com/ken-keranen To find out more about this home, go to http://prudentialcaliforniare.com/agent/sandiego/patandlaura/

Solana Beach "Senior Friendly Home" Reverse Mortgage Purchase Possible!

Ken Keranen (Reverse Mortgage Division of HSL) — Fri, 06 Aug 2010 12:33:55 -0700

This "senior friendly home" is now available for purchase in Solano Beach, CA. Someone 62 or older does not have to pay all cash for a new home to avoid making payments. I've done the math on purchasing this beautiful 3 bedroom, 2 bath Ocean View Home. I've calculated how much money would be required to make the purchase using the FHA Reverse Mortgage for Home Purchase Program. At age 65, the senior would need approximately $518,200 down; financing $350,000. At age 75, the senior would need about $472,000 for the down payment; financing $397,000 from the Reverse Mortgage. The current interest rate is 5.49% and the Government tacks on 0.5% per annum for the insurance. It is interesting to me that seniors ofttime feel that they have to leave Southern California where they want to live to move to someplace far less desireable but more affordable. When you are not making a mortgage payment by using a Reverse Mortgage for Purchase, it is possible to have your cake and ocean too! You can find out more about how Reverse Mortgages work and do a calculation on your own by visiting my web site @ www.homeloans.com/ken-keranen.

Senior Friendly Home Purchase for Mom

Ken Keranen (Reverse Mortgage Division of HSL) — Fri, 06 Aug 2010 07:26:31 -0700

While attending RainCamp yesterday in San Diego, I received a call from a woman who wanted information on how a Reverse Mortgage for Home Purchase would work for her mom. Her dad had died within the past year and now the daughter wanted mom to live closer to her in North San Diego County. The large family home had been sold and mom had around $250,000 in cash available to put into a new "senior friendly home". Her mother is going to turn 65 within the next few months and wants to be in place before Christmas. I did a quick calculation for her off the top of my head and indicated that she could purchase a home for around $560,000 with $250,000 (44%) as an approximate down payment. The daughter then asked me what the downside of this kind of loan is. I told her that the biggest negative point of this FHA insured loan is that she would not be inheriting quite as much money as she might have because her mom would be making no monthly payments. She asked what the interest rate was and I told her that we're now offering a fixed rate of 5.49% and that the Government tacks on an additional 0.5% for the ongoing Mortgage Insurance Premium (MIP). She asked if there is any more information available on the Internet and I suggested that she looks at my older site still on the network at www.reversemortgageforhomepurchase.com or on my corporate site at www.homeloans.com/ken-keranen. There are a lot of articles on the net regarding Reverse Mortgages but few that look at the possibility of using the program to purchase a new retirement home. The question and answer site regarding purchase at HUD is http://www.hud.gov/offices/hsg/sfh/hecm/faqs_hecm.cfm. Mother and daughter are going to talk it over this weekend and call me with further questions. The daughter was thrilled that she might be able to get mom to move closer to her without moving into her home.

Realtors Like Free Reverse Mortgage for Home Purchase flyers

Ken Keranen (Reverse Mortgage Division of HSL) — Thu, 05 Aug 2010 17:45:14 -0700

A Reverse Mortgage for home purchase presentation that I made yesterday to a group of Prudential RE agents really got their attention. I showed them examples of how much a senior buyer could put down on a specific property and then make no payments. These Realtors recognized that they may be able to up- sell someone who had been thinking that they had to pay all cash for their retirement home. Seniors, as a rule, do not like to make principle and interest payments if they don't have to. There were around 20 agents in attendance and 6 had me prepare flyers for them immediately for this weekend's open houses. One of the requests came from a Realtor who had a listing for a nice 2 bedroom 2 bath ground floor condo in San Diego selling for $229,000. My calculations included in the flyer showed that a 62 year old would have to put approximately $106,000 down while a 75 year old would put around $85,000. At either age, there would be no monthly payments for the borrower for the rest of their lives. When I put together open house flyers, I present the calculations at various ages and include the agent's picture and contact information. I also include several pictures of the home that is being shown along with the listing price and address prominently displayed. If someone would like to do the calculations on a specific home that is for sale, one can go to my web site at www.homeloans.com/ken-keranen and click on the Reverse Mortgage Calculator. There you will find out how much a senior is eligible for based on the borrower's date of birth and property value (any zip code now works). After you hit the calculate button you will find out approximately the amount of proceeds available from the reverse mortgage. You take the selling price and subtract this figure and the result is the down payment. For a more exact figure, you can fill in the request information on the web site above or to www.reversemortgageforhomepurchase.com and fill in the request form. I will be delivering the flyers to the agents tomorrow and hope that they have good open house showings this weekend. If nothing else, these flyers make good conversation pieces and open up to seniors a new financing method that they had not heretofore thought about.

Reverse Mortgages Attract Younger "Seniors"

Ken Keranen (Reverse Mortgage Division of HSL) — Wed, 28 Jul 2010 17:53:14 -0700

More potential clients have contacted me recently who are in their 60's. 17 years ago, when I first began originating Reverse Mortgages, almost every client was in his or her 70's or early 80's. In a recent article in "Reverse Market Insight", my personal observations were verified. According to this article, the average age has come down from 77 ten years ago to 72 last year. It was also noted by John Nixon with the Bank of America at a National Reverse Mortgage Conference recently held in Irvine, CA that the most common age for BofA Reverse Mortgage clients was 62 last year. As 62 is the youngest age for someone to take out a FHA insured Reverse Mortgage, it is really not all that surprising. With my area of concentration now being on the Purchase Program, I am encouraged that younger seniors are beginning to take a hard look at the program. I will be interested to follow the statistical analysis of the ages of clients who are using the FHA Reverse Mortgage for Home Purchase Program to buy their retirement home. So far, the program is only producing around 130 units per month across the country. I made a presentation this morning at a local Prudential Real Estate office and two agents immediately asked me to produce a Reverse Mortgage for Home Purchase Financing flyer for their weekend's open house. They both felt that seniors are out there looking now while prices are relatively low. What was surprising to me was that I would not have thought of one of the houses as being "senior friendly" because of stairs. The agent pointed out to me that not all seniors are old. As a senior, one year older than an official "boomer", I am in total agreement!

Misconceptions about Reverse Mortgages Still Alive after 20 years!

Ken Keranen (Reverse Mortgage Division of HSL) — Thu, 15 Jul 2010 12:50:24 -0700

I was surprised but not shocked when I read an article in the July 6th edition of Time by Stephen Gandel. One of the "Six Problems the Consumer Financial Protection Bureau Should Tackle First" that he cited is Reverse Mortgages. He got it all wrong! He implied that the bank essentially buys the home and therefore owns the home...it does not, the client owns the home. A Reverse Mortgage in this regard is just like any other loan with a note and deed. Mr. Gandel went on to state that the bank has the right to sell the property shortly after the borrower dies. The truth is that the bank does not sell the property if the owner dies while still living in the home. It's the heirs or beneficiaries of the living trust who sell the home. They, not the bank, keep the difference between what the home is sold for and the balance owing. He went on to say that the fees are much higher than other loans. Today, we are in a pricing war and fees have dropped considerably. For most lenders, there is no longer a loan origination fee nor a monthly servicing fee. If the loan was not 100% guaranteed by the Government, the total amount of fees would be equal to or less than any convential mortgage. With a Reverse Mortgage, there is no set date of payoff and no monthly payments. The Government has promised the senior throught the Mortgage Insurance Premium that they get to remain in their home for the remainder of their life without having to ever make a mortgage payment. For this guarantee, FHA charges a premium of 2% of the value of the property (up to a property value of $625,500) that is rolled into the loan. The ongoing premium of 0.5% per annum is tacked onto the accrued interest rate currently around 5.5% for most lenders making it essentially a 6% fixed for life loan. Mr. Gandel managed to hit three of the five biggest misconceptions about Reverse Mortgages. He left out saying that it is "only for the poor" and that you must own your home "free and clear". In all fairness, a lot of journalists have come to realize that this really is a great program for seniors and have tried to disspell these myths. Steven Gandel does not happen to be one of them and was permitted by the editors of Time to promote popular misconceptions as being facts. It's too bad that such shoddy exists between the covers of such a well respected and widely read magazine.

FHA Reverse Mortgage for Home Purchase Program has some rules....

Ken Keranen (Reverse Mortgage Division of HSL) — Sat, 10 Jul 2010 06:25:00 -0700

I received a call yesterday from a prospective purchaser of a home who was going to sign an application for a HECM (FHA Reverse Mortgage) loan through another lender. He had found my name and some of the articles I had written and called me up to see if there might be a "better deal" than the one he had been presented. I began my "due diligence" including looking up the property profile through a title company site. When I couldn't find the property listed it hit me that it might be newly constructed. I then went back to the borrower and asked him if the house that he was buying had been completed. He said that it was going to still be another week or so. I had to tell him that I can not take the application until the home was completed and a "Certificate of Occupancy" had been issued. The inexperienced loan officer that he had been working with him never let him know that this is the case. It is impossible to close a loan using a Reverse Mortgage for Home Purchase on the day the home is completed. His puchase and sale agreement that he has signed indicating a closing date that is not possible will have to be extended. Before someone signs an agreement to buy a home using this program, the borrower should find a lender who is experienced and who knows the rules. The HUD web page that has "Frequently Asked Questions" about the Reverse Mortgage Program is: www.hud.gov/offices/hsg/sfh/hecm/faqs_hecm.cfm