What is a Reverse Mortgage Purchase

This allows seniors at least 62 years of age and above to purchase to buy their next home using a Reverse Mortgage purchase or HECM (home equity conversation mortgage) and some of the money from the sale of the last house.

Short version : Realtors: Ever have a client that sells thier custom home to downsize and walk away with $200000. They hoped to find a small “garden home” with thier proceeds and maybe a little savings. After they view the first few houses, they decide what they wanted won’t be possible. What if they could go look at a garden home at $400000. Using the Reverse Mortgage purchase they can get the house they want with about 50% down and no mortgage payment- doubling thier buying power and possibly doubling your commission. Win-win. We are closing these in the same time frame as a conventional mortgage. About 30 days currently.

The facts:

• The Reverse Mortgage Purchase a home with. A tool that every Realtor should be aware of the benefits. A Realtor could double their clients buying power. The qualification is easier. May help Realtors get a side of two sales. The Reverse Mortgage purchase a home has been around for over a decade.
• The Reverse Mortgage has become heavily regulated to the point that financial planners now recommend them.
• The traditional Reverse Mortgage has been around since 1989. They are for people aged 62 and above; but if the 62 + homeowner has a wife, they will be on the mortgage as a non- borrowing spouse.
• Realtors have told me they had bad experiences with other lenders taking longer to close but as a broker with top lenders to choose from I always use the few that have a “Purchase” department.
• I make this as easy as an FHA loan. Closing in 30-45 days. I also give top notch service by being the clients only contact. I do not take the application and hand it off to the processor and forget about it.
• I make it easy on you the Realtor also. You can be with a client and text or email me the younger persons date of birth, the home value and generally I will text you back the amount needed for them to close and that is all I need to produce a nice illustration that will be accurate and helps explain the program, I can email it to you at the same time. That way you can give them the amount needed to close immediately, if I have access to a computer.
• Your client can buy more house than they thought or use a portion of the funds for the purchase and save the remainder the proceeds for retirement income.
• The Realtors I work with do these repeatedly. They could easily mention this, and the buyer may be interested and move their budget from $200,000 to $400,000.
• Alabama has always had cities ranked as great to retire to. Our property taxes are low and then there is the possibility of being tax exempt. People are moving from places like California and New York where Reverse Mortgages and the Reverse Mortgage purchase are more common. Allot of time these out-of-town home buyers will call me first me before looking for a realtor, so they can be sure they have a lender that is familiar with how to get one done fast.
• New Construction – A Reverse Mortgage has a 120-day rate lock once the application is signed.

 Rise of the single 55 plus buyer. Active 55+ communities      Realtors Active Rain Webinar.  Inside the reasons seniors choose the Reverse Mortgage (HECM for purchase.)

Click Here.   Read  Retirees can save with Reverse Mortgage Purchase. Read article on housing wire about Reverse Mortgage to purchase. One third of retirees would rather live somewhere else.     Forbes: Details on Reverse Mortgage for Purchase.

Reverse Morgage Purchase or How a Reverse Mortgage. Can Help You Buy a New Home. When you were younger, your home was the perfect place. Your spacious backyard, shaded by trees, provided the place for your children to run, laugh, and play. Your kitchen, along with your fully stocked fridge, continuously provided plentiful meals to feed your growing family. Your living room and den, outfitted with the television of the house, served as the family gathering spot to lure each member away from their individual rooms to cultivate family bonding time.

During those years, you may have thought that the last thing I plan to do is downsize. But as you enter retirement and your children have left the nest, you may begin to realize downsizing is not a bad idea.

Why Buy a New Home as a Senior? Perhaps the home that perfectly served your growing family in the past now seems too large for your current needs. Having a multiple-level home with several rooms and a huge garden may now take more work than you are willing to put in to maintain it and, if you are retired, you may prefer to downsize to a smaller, more manageable home. Or perhaps you need a home that caters to new physical needs, such as a one-level home with ramps or handrails and wider doorways. The allure of a warmer climate may be attractive, or you may simply choose to move closer to the rest of your family. Whatever your reasons, there is a viable option available to you for aging in a new home instead of your current one.

How Does It Work? The HECM (Home Equity Conversion Mortgage- real name for Reverse Mortgage.)  Purchase is a solution that allows you to accomplish two goals in just one transaction: to attain a more fitting principal residence and to obtain a reverse mortgage. This can save you money since you incur only a single set of closing costs because it consolidates two financial transactions—purchasing a home and financing it with a reverse mortgage loan—into one.

When is the HECM Purchase Due? Although there is no specific date in which the HECM Purchase loan is due, a few events can cause the loan to become due and payable. The following are such events that would cause loan maturity:

The last remaining borrower or non-borrowing spouse passes away or leaves the home to live elsewhere for more than 12 consecutive months. The home is sold.

You do not meet the borrower obligations of maintaining payment of property taxes, homeowner’s insurance, homeowner’s association fees, and basic home repairs or you fail to comply with other loan terms.

This can be a valuable option for seniors who need a new home that better meets their physical needs, or who wish to move closer to family members. Since this is a reverse mortgage product, monthly payments are not made on the new house.

This can be a way to get your buyer the perfect house and they have money left over. We have this down to an art, and close in under 1 month! Scott Underwood will meet with Realtors, clients, and other interested parties. My office is in Hoover, but I still make house calls to greater Birmingham most of Central and North Alabama with a Huntsville, Alabama office as well.

Unlike the traditional reverse mortgage, Reverse Mortgage (HECM) purchase loans require a down payment, which you must pay with your own cash. Typically, the down payment required is based on the borrower’s age. The older the borrower is, the lower the down payment requirement will be. Reverse Mortgage Purchase are subject to the same guidelines as a standard Reverse Mortgage (HECM) loan.

Birmingham and Huntsville Realtors – show clients how to purchase and keep money in the retirement fund! – a Reverse Mortgage used to buy a home. You may think its way to hard and takes too long, but we can close just like a traditional loan in a month! Scott Underwood and Reverse Mortgage Alabama can complete these loans in a month!!

Reverse Mortgage Purchase is an extraordinarily successful program and provides a wonderful opportunity to people who are 62 years or older to move to a home more suitable for aging. Perhaps living closer to family members and services or a single level home or an active adult community will be the best choice! A few examples are a couple lived in Clanton and wanted to move to Pelham to be closer to grandchildren and better hospitals. Another was a lady who lived in a house to large in CenterPoint and wanted to be able to buy a house she could not have afforded in Trussville.

The (HECM)  Reverse Mortgage Purchase option allows you to minimize your cash requirement (and keep more money in your retirement savings), get more home for your money and have no mortgage payments to make. Why take money from taxable retirement income when you can get down payment money from the reverse mortgage and not have to pay income taxes on it? Keep your money in your investments and let it continue to grow and maximize your funds.

There are additional forms needed when making an offer using a reverse mortgage as financing. Make sure you have the proper forms in your offer package. Our team will analyze your proposed transaction before making an offer. 

Please call Scott at (205)908-2993 or email scott@reversemortgagealabama.com. Birmingham and Huntsville offices.