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What is a Proprietary Reverse Mortgage???

Mortgage and Lending with Christensen Financial Mortgage 385907

When I describe the features of a Proprietary Reverse Mortgage to one (or more) of my Realtor friends, without telling them what it is, or what it is called, I almost always get intense interest, and why shouldn't I?

Today, I'm going to stick with the value to my Realtor friends, which is to create more sales, and present exceptional value to their clients. So here's two major benefits to our clients.


The Senior is going to qualify for more home, in most cases.


The Senior will be able to retain significant assets.


Why will they be able to afford more home, you may ask? well let me address that.

A proprietary reverse mortgage is designed to deal with luxury purchases with more substantial asking prices. In many/most cases the senior will not qualify for traditional financing due to current mortgage guidelines, particuarly those regarding verifyable income. Most of these potential homeowners pay cash and often are prevented from purchasing the homes they truly want.

With a proprietary reverse mortgage qualified seniors can acquire mortgages up to $4 million, and do not need to qualify for the monthly payments, as those are optional, meaning they may make payments, but they are not required. They must however demostrate that they have the capacity to pay the taxes, insurance, and maintenece on the property. And of course HOA fees if there are any.

Retaining significant assets

One of the main issues for Seniors today is the fear that they will outlive their retirement income. Well when using a Proprietary Reverse Mortgage to buy a home, instead of paying cash they can put down, on the average 50% and retain the other funds in their investment accounts. The down payment is computed based on the age of the youngest borrower, and the purchase price. Once again, let me remind you that monthly payments are not necessary, which helps with the Seniors monthly, and annual cash flow.

I have to share with you that there are many more provisions of the proprietary reverse, and I could go on, and on, with more interesting facts, but I'll save some for another time.

Finally; please please, please find a mortgage professional who is well trained, and highly educated in the reverse mortgage field, before considering using this product. But

without a doubt the proprietary reverse mortgage is a very dynamic option for Seniors considering a new home purchase in todays marketplace.