The Reverse Mortgage for Purchase is a tool by which Realtor's who are selling a home to a Senior over the age of 62 can now purchase that home using a modest down payment, plus a Reverse Mortgage instead of a traditional forward mortgage.
For those Realtor's that have used this program in the past year, you know it works. For those of you who are skeptical, I urge her to contact me and I will make you a believer of the program.
In many cases I have had the opportunity to educate the consumer who has then contacted you, the Realtor, telling you he wants to buy a house using the Reverse Mortgage Purchase Program. And, in most instances the Realtor's reaction is that it cannot be done. But it is a fact, it can be done, it has been done for the past several years, and I would love the opportunity to sit with you and show you how this is such a simple loan to do since we are not concerned with credit scores, nor income or employment verifications.
So, if you're looking for a niche market to develop new business, this will be your next move.
"Homesharing" and Seniors is a big thing?
Well, it is a very big thing!
There is even a National Shared Housing Resource Center! These people are tasked with matching Seniors who do not want to live alone, and are willing to share a house.
Many of these Seniors are also using the Reverse Mortgage as a tool to meet the surging demand for affordable housing in a time of shrinking subsidies and economic distress.
Since many Seniors are looking to stay in their homes, using a Reverse Mortgage is a great way for "home sharers" to make ends meet as well as future security when one passes. The Affordable Living for the Ageing (ALA) concludes that a large majority of Seniors are house rich and cash poor" and the Shared Housing program is their best solution.
So as realtors, here is another "niche" area for you to get more business for 2013.
If you have a customer who may benefit from "Home Sharing" or from a Reverse Mortgage, call me to discuss
how this may affect them and your business.
Do you know anyone who is becoming part of the "Sandwich Generation"? For those who are thinking of living or experiencing this phenomenon where the adult children have to take care of their own kids as well as their aging parents, allow me to suggest a possible solution.
If the elder parents are still living in their own homes, a Reverse Mortgage may be a solution for them, and you. Before making any drastic decisions, please allow me to explain how a reverse mortgage works, and how it may be beneficial for all involved. It did for me, in my personal life, when taking care of my elder mother.
With a Reverse mortgage, you can use the equity in a Senior's home to give the Senior the freedom to stay in their home, and have the services they will need available to them at their home without having to sell, or move in with their children!
A home can be Purchased with a Reverse Mortgage! Absolutely!
A Senior can purchase a home by putting a modest down payment and taking a Reverse Mortgage for the balance of the purchase price.
In many instances, Seniors are selling a home first, then, buying another property, often a smaller home, and they can use some of the funds from the sale for the down payment. This allows them to keep a sizable portion of their selling price to use as savings or as they see fit.
Remember, there is never a monthly payment on a Reverse Mortgage, even when its a purchase!