Our relationships with estate agents run deep because of our ability to provide both traditional and reverse mortgage loans, giving them a vast spectrum of products to serve their client base, from first-time homebuyers to seniors seeking the perfect retirement venue. In particular, if you have older clients who are ready to sell their home and move into a new one that is closer to family, safer and easier to maintain, or nearer their favorite amenities or pastimes, share with them how they can achieve these goals with a reverse mortgage. Using proceeds from the sale of their previous residence as their down payment and combining it with a reverse mortgage loan, they can purchase a new home without having to worry about making monthly mortgage payments (borrowers must remain current on property taxes, homeowners insurance, HOA dues, maintain the home and otherwise comply with loan terms). The HECM for Purchase also has minimal income and credit requirements, plus many consumer safeguards, including FHA-insurance. Your clients get a great home, preserving their cash flow, and you get to sell two homes. That’s a great way to literally double your business!
Did you know homeowners 62 and up have over $9.5 trillion¹ tied up in home equity? That’s wealth your clients could use to sell their current home and apply a portion of their sale proceeds to buy a more age-appropriate residence closer to family, friends, and more of the activities and amenities they enjoy. A Home Equity Conversion Mortgage (HECM) loan does just that. The HECM provides the remainder of the funds to complete the new home purchase, potentially resulting in two transactions for you and a better retirement for your clients.
The concept is simple. Your clients (age 62 and up) contribute a portion (e.g. 60%) of the new home purchase price using proceeds from the sale of their previous home or other financial resources, like savings and investments, and the HECM loan covers the rest. The HECM, however, doesn’t have to be repaid until the homeowner leaves the property (or does not otherwise comply with the loan terms) and no monthly mortgage payments are required. Borrowers must of course continue to pay their property taxes, homeowners insurance, and maintain the home.
More AAG Options: VA, FHA, traditional, refinance, jumbo, jumbo reverse, reverse for purchase and jumbo reverse for purchase loans.
¹Senior Housing Wealth Tops 9.5 Trillion for First Time" – Reverse Mortgage Daily. October 17, 2021. https://