REVERSE MORTGAGE FOR HOME PURCHASE

New Business Building Opportunities for Realtors!

Great Florida Lending

Jose F. Lopez

Lic. Loan Originator

T. 305-310-7804

jlopez@greatfloridalending.com

www.greatfloridalending.com

R

EVERSE

M

ORTGAGE

FOR

C

OURSE

M

ISSION

S

TATEMENT

The purpose of the Home Equity Conversion Mortgage (HECM) for Purchase course is to educate Realtors on a unique financial product that can be used to target one of the largest demographics in the real estate industry, ―Seniors‖. and their real estate needs. By marketing to the real estate needs of Seniors, particularly the Baby Boomer Generation, Realtors can focus on one of the wealthiest generations in American history.

R

EVERSE

M

ORTGAGE

H

ISTORY

 1987 — FHA program

began.

 2007 — Fastest growing

segment of the market.

 2009 — HECM for

Purchase program becomes effective.

 2010 — Over 493,815

lives changed through the Reverse Mortgage process. 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 110,000 '9 0 '9 1 '9 2 '9 3 '9 4 '9 5 '9 6 '9 7 '9 8 '9 9 '0 0 '0 1 '0 2 '0 3 '0 4 '0 5 '0 6 2 0 0 7 E s t. En d o r s e d L o a n s

W

I

T

H

E

C

M

(HECM) F

P

?

 An FHA-insured Reverse Mortgage.

 Enables Senior homebuyers, age 62 or older, to

purchase a new primary residence and obtain a reverse mortgage in simultaneous transactions with no monthly mortgage payments.

 Allows Senior buyers to combine reverse

mortgage proceeds with a down payment from their current home sale or other assets, to

H

C

T

HECM

P

B

R

?



Expand your customer base by telling

prospective buyers about this program and

its benefits.



Allows Realtors to list the properties of

potential customers looking to downsize or

upgrade their current residence.



Real estate agents may benefit from two

potential transactions – a home sale and

purchase.

Applicants have to be 62 years or older. Only 62+ year old Seniors can be on title. United States Citizen or Permanent Resident with Alien Card. -No Income -No Assets -No Minimum Credit Score -No Problem!

W

HO

A

RE

T

HE

C

ANDIDATES

FOR

A

R

EVERSE

P

URCHASE

?



Very flexible income and qualification

Requirements: Senior Buyers that don’t

qualify for conventional or FHA financing.



Funds required can all be gifted by multiple

sources.



Useful tool for senior borrowers wanting to

relocate and downsize. (Empty Nesters)

W

?

 Single family homes

(attached or detached)

 Duplex, Triplex, &

Fourplex.

 Condos & Townhouses

(FHA approved)

 No co-ops, nor new

construction where the certificate of occupancy has not been issued.

B

ENEFITS

OF

A

R

EVERSE

M

ORTGAGE

 No monthly payments,

ever.

 Does not affect Social

Security or Medicare benefits.

 Senior holds title to the

property bought just like a regular purchase.

 Senior keeps all

remaining equity when property is sold.

ONE

: IDENTIFY THE NEED.

Robert & Samantha Jones, both 74, want to buy a more accommodating single-story home.

They work with a real estate agent,

you, to sell their current two-story home priced at $450,000.

In separate second transaction, they look into buying a new single-story home. The Jones meet with you and look at several homes priced at

TWO

: APPLY FOR THE LOAN.

You introduce the Jones to a reverse mortgage consultant (Licensed Loan Originator).

The HECM for Purchase consultant shows the Jones how the reverse mortgage for purchase could provide the additional funds they’ll need:

Purchase Price $300,000

Reverse Mortgage Proceeds $197,700

THREE

: CLOSE TWO TRANSACTIONS.

The Jones combine the

$102,300 from the sale of their departure home with the

$197,700 reverse mortgage to purchase a new home for

$300,000 — and have no

monthly mortgage payments! • You handled two real estate transactions for the Jones.

T

HE

R

EVERSE

M

ORTGAGE

P

ROCESS

.

• Before submitting your buyer’s loan

application they must complete HUD required counseling. (Counseling is typically a 30

minute phone consultation)

• Borrower fills out and signs 1009 Application.

HUD

COUNSELING &

APPLICATION

• The appraisal is scheduled immediately after counseling certificate is obtained.

APPRAISAL

• Your Senior Buyer Closes within 15-20 days after appraisal & owns their new home.

SAMPLE SCENARIO ONE:

 Purchase Price: . . . $625,000.00

 Down Payment: . . . $235,500.00 (38%)  HECM Loan Amount: . . . $389,500.00

SAMPLE SCENARIO TWO:

 Purchase Price: . . . $200,000.00

 Down Payment: . . . $ 82,500.00 (41%)  HECM Loan Amount: . . . $117,500.00

B

ENEFITS

OF

A

R

EVERSE

M

ORTGAGE

 You will never owe more

than the home value.

 No credit, income or asset

qualifications.

 Repay at any time with no

prepayment penalty.

 No upfront fees collected.

HECM P

URCHASE

M

YTHS

 I would be buying my house but the bank will own my home:

FALSE---You keep the title to your house.

 My heirs won't inherit anything:

FALSE---Your estate only owes the balance on the

reverse mortgage.

 I could get forced out of my home:

FALSE---FHA/HUD reverse mortgages specifically

HECM P

URCHASE

M

YTHS



Social Security and Medicare will be

affected:

FALSE---Money from a reverse mortgage is not

considered income and doesn’t lower Social Security or Medicare Benefits.



There are big out-of-pocket expenses:

FALSE---All of the costs, whether closing costs or

I

MPROVE

Y

OUR

C

USTOMERS

L

IFE

.

 A HECM for Purchase

allows the Senior

Borrower to qualify for a loan.

 A HECM for Purchase

has no Monthly

mortgage payments.

 Make life easier and

worry free for your senior buyers. Home Equity No Payments Better Life

5 R

G

R

P

 Buyer owns their home for life—Not the

bank.

 Buyer never makes a mortgage payment as

long as they maintain their home as their homestead.

 Buyer’s heirs still inherit the home.

 Buyer and heirs never owes more then their

R

EPAYMENT

O

PTIONS

/ O

BLIGATIONS

 When the buyer/borrower sells their home.

 When senior leaves the home for more than 12

consecutive months for medical reasons.

 After the passing of the last homeowner.

 Senior can Repay or refinance at anytime during the

loan (No Pre-payment Penalty).

 If Senior doesn’t pay their homeowner’s insurance

O

BLIGATIONS

D

URING

THE

L

OAN



Maintain the home as primary residence.

Keep the home in good condition.



Maintain paying homeowner’s insurance

and property taxes.



Continue to use the Property for its

New Business Building Opportunities for Realtors!

Great Florida Lending

Jose F. Lopez

Lic. Loan Originator

T. 305-310-7804

jlopez@greatfloridalending.com

www.greatfloridalending.com

R

EVERSE

M

ORTGAGE

FOR