HECM For Purchase Reverse Mortgages Generate Transactions With Right Sizing And Gray Divorces.
Ever know of anyone - buyer, seller or otherwise - who wants to relocate but can’t qualify for a conventional home loan due to a lack of income? The Home Equity Conversion Mortgage (HECM) for Purchase program solves this problem. In short, the senior citizen uses a large down payment, for example 50%, possibly the proceeds from the sale of their existing or prior home, and then would have no mortgage payments on the balance of the new loan.
This allows seniors to keep more cash from the sale of their home, giving them more freedom, flexibility and the ability to right size to a home that fits their lifestyle, move closer to family, a senior living community or to a more desirable climate.
That could possibly mean two Realtor transactions, one to sell the existing residence and another to purchase the next home. Call me at 805-276-1942 for a 10 minute slideshow presentation, I would love to show you how this can bring you more business 805-276-1942!
Realtors Become Heroes in Gray Divorces
Bowling Green State University did a study in 2013 that divorce rates doubled for couples over 50 years of age between 1990 and 2010. A gray divorce situation can possibly add up to three sales transactions for a Realtor but more importantly you can create a win-win-win for all parties involved, let me show you how.
A divorce typically ends up with a division of assets, which includes equity in property. Often times in a gray divorce retirees can not qualify for a cash out conventional home loan to buy out the other spouse due to lack of income.
With a HECM reverse mortgage, where income qualifying is not as much of an issue, the spouse who wants to retain the home can obtain the lump sum cash out, not have to make payments on that new mortgage loan, and the person receiving the funds takes the lump sum to go buy their own home, using a HECM for purchase home loan. After applying the large down payment they will not have any mortgage payments on the balance of that loan either!
If the couple chooses to sell their home, split the proceeds, and each takes their lump sums and buy their own respective homes using the HECM for purchase home loan, that would mean the sale of the existing residence and than two purchase transactions for you the Realtor.
The Realtor becomes the hero for giving the senior couple an option that many people don't know exists-the HECM for Purchase home loan.
To see what you or your client can qualify for feel free to use our HECM for purchase calculator or our HECM lump sum cash out calculator. Also feel free to send me your scenario as well by clicking here.
Want to know more? Give me a call or text me and I can do a 10 minute slide show presentation over the phone, 805-276-1942!
C2 Reverse Mortgage