Did You Know?

A Reverse Mortgage Purchase Loan Could Help Your Client’s Money Go Further

Reverse Mortgage Home Purchase Loan 

Ask us for a side-by-side comparison, Reverse & Conventional home financing.

When we think of down-sizing, right-sizing or closing on the perfect retirement home, our priorities are different than when we were possibly raising a family, needing to live in the middle of the city, or needing space (lots of space). It makes sense too that the mortgage structure you had then, may not be the most advantageous for you now.

Managing monthly cash-flow when the work income stops for Retirees & Pre-Retirees is top of mind now. Having a required monthly principal & interest payment, versus the option to skip or NOT make a monthly payment, factors into your Buyer’s purchase price, location, amenities and qualifying for any loan.

In strolls the “Reverse for Home Purchase” loan advantages…

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Buyers may have MORE purchasing power with a reverse purchase loan.

Qualifying can be easier, weighted towards equity in the property with less emphasis on debt-to-income ratio and credit scores.

Then there is cash-flow as mentioned above… Borrowers are not required to make a monthly principal & interest payment during the term of the loan.

Borrowers are required to pay taxes, insurance, HOA (if applicable) and maintain the home, just like other lending.

P.S.   If you are retiring soon and will be looking to buy a new home, be sure to meet with a mortgage broker like us, BEFORE you resign from your job.  We  tell you what the lending requirements are for the the loan type you want, and that can impact your timing.

Recognizing the Opportunity

      • FHA  Reverse (HECM) Age minimum is 62+
      • Non-FHA Condo & Jumbo Reverse Loans, Age minimum is 55 Oregon, 60 Washington
      • Clients are ready to Down-size, Right-size or even Up-size!
      • Goals are moving closer to family or ready for lower maintenance
      • MORE THAN READY to buy their “DREAM HOME” and don’t want to take on a required monthly mortgage payment!
      • Concerned about their fixed income and the monthly cash-flow strain of a mortgage payment
      • Want to preserve some proceeds from the sale of their current home for a cash reserve or other retirement needs and still buy the home that they want.

Competition is steep, buyers need a depth and breadth of financing pre-approvals. Kim is uniquely qualified, providing simultaneous purchase pre-approvals for Reverse & Conventional loans.

Help your Clients Age 55+ Gain a Competitive Advantage

*Reverse mortgage Borrowers are required to pay their taxes, insurance, HOA if applicable, maintain the home & live in it as their primary residence. 

Single, Multi-Family Home or Townhome

When writing your offer, list FHA as the Loan Type. Sellers can contribute to Buyer’s closing costs per FHA new rules in 2024.  Underwriting times similar to conventional. A loan type all buyers age 62 & older should look at.

Deb & Dane’s Story

Deb & Dane needed a home in retirement that fit their lifestyle; one-story, garden space and a chicken run. An FHA Reverse Purchase loan provided protection from volatility in the financial markets.  If their IRA balances took a beating & inflation was slow to moderate, not having to make a monthly mortgage payment made all the difference.

Condos & Jumbos

Condominiums using FHA HECM Reverse, best for home values up to ~$1.15 million. May qualify for FHA SINGLE USE APPROVAL (SUA) or the complex must be FHA approved.

JUMBO Reverse Purchase Loans do not require FHA SUA or complex approval. Minimum purchase values apply, generally $500K +

One set of documentation.
All financing options side by side.

“When you find the right home, we have the right loan. Our Buyers are ready to act!”
~ Kim Dodge

Link to “Dream Home Purchase”

Realtors