Reverse Purchase Mortgage

By
Mortgage and Lending with Southern Trust Mortgage

Not having a monthly payment would be nice!!!!!   It can happen with a Reverse Mortgage Purchase.  Your client may not want to have a monthly payment in order to free up cash so that they can 1) help with the grandkids education, 2) travel, 3) replace lost income from stock market investments, 4) replace some of their retirement income, 5) buy a vacation home or 5) have some additional income.

A Reverse Purchase can fit a lot of their needs.  They only have to be 62 years of age and in the process of selling their current home.  Their credit history is not considered. Their income (or lack of income) is not considered. Thier employment (or lack of employment) is not considered.  This sounds to good to be true but it is the way the program is written.

The Reverse Purchase can be a tremendous tool in your toolbelt of available programs. 

In order to protect the applicant the Federal government requires that they must have pre-purchase counseling so that they can decide if the Reverse Purchase fits their needs.  It also helps them to find out if the loan officer told them the truth about the figures.

There can be no seller contributions/concessions/incentives involved in the transactions.  This includes loan discount points, interest rate buydowns, closing costs assistance, builder incentives, gifts or personal property given by the seller to the buyer as an inducement to purchase.  All customary charges that are normally paid on behalf of the buyer by the the seller are prohibited.

This program can be used on 1-4 unit properties.  Your client can enjoy investment income and still not have a mortgage payment.  Sounds good doesn't it?

I will writing some more about the Reverse Program in future blogs so that you can know how this program can help you make more money.  thanks and I'll talk to you soon.

 

Comments (3)

John Saari
Worcester, MA
"The Mortgage Buddy"

Nice post Michael. A lot of people are not aware of this program and it's a good one. Good luck.

May 02, 2011 10:21 AM
Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Hi Michael, I knew you could write. Looking forward to seeing you at the  Garden Party Wednesday May 4th  

Margaret

May 02, 2011 06:11 PM
Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

We had a wonderful turnout today for our ActiveRain Garden Party. I am sure there will be some blogging.d  We had over 35 show up.  I was so pleased that you joined us. Hope you enjoyed the food, the company and the house!

Thank you.

Margaret

May 04, 2011 02:58 PM