I saw a statistic the other day that completed astounded me... Since the FHA Reverse Mortgage Purchase LOAN was introduced in 2008 there not been a lot of these loans closed. This made sense to me after the experience I have had over the last 90 days talking to over 100 Real Estate Agents in Southern California. I hear a lot of agents complaining that they are not busy, they are trying to do short sales or seminars to get short sales etc...I ask them all this question: If I could show you a tool that will help you tap into an under served market that will generate Equity Listings and well qualified buyers with large down payments, would you be interested? They all are interested! But that is where it ends.
Here are some facts:
1. A fast growing segment of our population is the baby boomers.
2. By the year 2020 the people living in their homes over the age of 65 will increase by 20%.
3. As people age and retire they look to downsize and move closer to family and friends.
4. It is difficult to get a conventional loan as a retired person on a fixed income.
5. Most senior citizens do not want to use all of their equity from the sale of their current home to buy a house cash. For a lot of them their house represents their biggest part of their retirement funds or savings.
In summary, there is a large segment of our population that wants to move but cannot due to a number of different reasons ranging from:
1. Inability to get a loan due to more stringent lending standards.
2. Lack of desire to buy a home cash because they need the money to help with living expenses etc..
How can we help this market of people? The answer is easy and it is an answer that can bring lots of units and closings to Real Estate Agents! Educate people over the age of 62 on how to use an FHA Reverse Mortgage for Purchase loan to buy their next home. This loan solves most of the problems that are keeping them from moving!
1. No income verification or requirements.
2. No credit requirements (they can have bad credit and get this loan).
3. No mortgage payments ever.
4. Easy qualifications.
These loans are based on 3 things:
1. Age (you must be 62 years or older)
2. Value of the house you are going to purchase and the zip code for the home.
3. Down payment
Here is an example:
A person the age of 65 wants to buy a home for $400,000 in Yorba Linda, Ca. The FHA will give them an FHA Reverse Mortgage Loan in the amount of $240,898. They will have to come up with a down payment of $159,102 plus fees.
The same scenario for a person that is 72 years old is:
FHA Reverse Mortgage Loan amount = $256,898
Down Payment = $143,102
They can buy a home and never have to worry about mortgage payments for as long as they live in that home. They can also sell it and do it again.
If you are a Real Estate agent I encourage you to contact me so I can educate you on this tool!! There is a market of equity listings and well-qualified buyers waiting for you!
Noah S. Burford
noahb4@gmail.com
949-278-9244
NMLS#360982
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