Are Most Real Estate Agents Missing a Great Opportunity?

We at the Real Estate Tool Box think so..........................

With the growing number of Baby Boomers now searching for their "Last Home,"  Agents should be looking to innovative ways to help seniors achieve this with minimal financial impact.

Now, many of us in the industry have not the ability to think beyond the settlement table and earlier in my mortgage career, I was guilty of that same attitude.  You know what I am talking about!!

What we should be doing is providing service to the client's best interest & bank account and not our own. 

What was once only employed as a refinance loan for seniors, the REVERSE MORTGAGE can now be used to provide a financial tool for the purchase of a senior's home. This program can help senior homeowners relocate or downsize to a new home without giving up all their savings -- and save them thousands of dollars in the process.

The HECM (Home Equity Conversion Mortgage) is an FHA Program and is insured and regulated by the Federal Housing Administration.

The FHA developed the program because it noticed seniors were selling their homes, buying smaller, more affordable homes and then taking out reverse mortgages on the new properties. That meant they were paying closing costs twice -- first on the real estate closing, and a mortgage if they needed one to make the purchase, and then again when they switched to a reverse mortgage.

Why this loan program is so critical today is obvious.  With seniors having experienced significant economic challenges the timing could not be better. Seniors are today trying to boost their monthly incomes after being hit especially hard by the economic downturn: stock portfolio values plummeted, interest on investments shrank, and costs for health care and home repairs skyrocketed. This program will allow the buyer to purchase their new home with approximately 50-60% of the cash they would normally use for a cash purchase and allows them to keep the remaining cash in their bank account.

And the real great aspect of this loan program?  

They never have to make a single payment.

Any Real Estate Professional with the desire to be their client's Trusted Advisor will invest the time to ensure they are fully informed about how the new FHA HECM Reverse Mortgage can put their senior clients in a home without the client emptying their bank account.  This REQUIRES an informed & knowledgeable Loan Originator (LO) who, beyond all other talents, acts more as a counselor than sales person.

The LO will be responsible for interviewing your senior buyer to make sure they have an understanding of the reverse mortgage and will additionally determine whether the client should fulfill FHA's HUD Housing Counseling requirement by phone or in person.

Key Items an agent will need to know?

To qualify for the reverse mortgage a senior, age 62 or older, must:

1. Agree to live in the house as a primary residence.
2. Not be delinquent on any federal debt.
3. Participate in a consumer information session given by an HUD-approved counseling agency or HECM counselor.
4. Have the cash ability to pay the difference between the Purchase Price & Reverse Mortgage.
5. No income requirements.
6. No Credit Score Requirement.
7. The Property Condition must meet Standard FHA Loan guidelines.

Get More Delaware Info at my Web Info Page - Retire Delaware - HERE

The amount one can borrow depends on their age, current interest rates, and the appraised value of the home or FHA mortgage limits for the area, whichever is less. And, their current primary residence needs not be sold, but can be used as an additional income stream for the later years.

For the Agent looking to engage this market, the opportunity is there, because the client is there.   For those agents in States known for their favorable retirement status, those Agents who Specialize in the Senior Market would most likely not need to worry about being at the settlement table again.

To Find Out MORE on Reverse Mortgages visit our Reverse Mortgage Website Today - CLICK HERE

Remember - These Seniors have Middle aged children with families and grandkids entering the real estate market.  Treat  the Grands well and it could open all kinds of possibilities for you!!

"The Real Estate Tool Box - Providing The Best Tools For Your Home Loan"

The Mission of the Real Estate Tool Box is to Provide Solutions to Home buyers, Home Owners and Real Estate Professionals.

Chris Rowe lives in Middletown, Delaware is a licensed Mortgage Loan Originator working in all areas of mortgage financing and is also an instructor for the Delaware Association of Realtors.