How Realtors Can Benefit from Reverse Mortgages
Borrowers and retailers alike can reap the benefits of the Federal Housing Administration’s reverse mortgage program. If you are a Realtor, you may find a wealth of clients who could benefit from using a reverse mortgage to purchase a new home. At Great Florida Lending Inc., we specialize in helping borrowers apply for reverse mortgages, also called home equity conversion mortgage (HECM). Many clients who are exploring HECM as an option choose to work with a Realtor for their expertise. If you have questions about the Realtors and HECM for purchase or have clients who might benefit from a reverse mortgage, contact us. We serve clients in Miami, Kendall, Hialeah and Coral Gables, FL, as a respected resource for borrowers.
Qualifying for a HECM for Purchase
Our loan officers work with borrowers and Realtors to determine if a borrower is a good candidate for HECM for purchase. Borrowers must be at least 62 years old and have a substantial amount of equity built in their existing homes. They must be able to afford homeowners’ expenses other than a mortgage, such as insurance and taxes. They will also need to undergo phone counseling and undergo a financial evaluation.
If you have clients who meet these requirements and are looking to move into a new home for whatever reason, contact Great Florida Lending Inc. Our skilled team can help facilitate the loan process.
Selling a Client’s Existing Property
Realtors can actually benefit from two transactions when it comes to HECM for purchase. First, in the sale of the borrower’s existing home. While we help clients apply for their HECM, a Realtor will help sell their existing home. The equity they have built in the existing home will be used to pay for the next home. In exchange for this loan from the FHA, the equity in the new home becomes collateral to pay off the loan after the client’s death or if they move. As a Realtor, you can benefit from the listing of a client’s existing home while helping them find a new home.
Finding a Client’s New Residence
Many of our clients choose to use HECM for purchase because they would like to downsize or move to a more accessible home. Others choose to move closer to loved ones or to a more convenient location. As a Realtor, you can help these clients find the perfect home in which to live out their golden years. There are a few stipulations to note when your HECM for purchase client chooses a new home:
- The new property must be a single family home or approved condo.
- The client must pay the difference between the HECM loan and the purchase price of their new home, if there is one.
- The property must become the client’s primary residence within 60 days of the loan closing.
- New properties must be 100% completed at the time of inspection and loan application.
Helping Seniors Find Their New Home
While certain requirements must be met, many Realtors find reverse mortgage for purchase transactions to be very rewarding. In addition to the ability to gain commission off of the sale and purchase of a new home, you can directly improve a client’s quality of life. Helping seniors find more comfortable homes and the relief that comes without having to pay a mortgage are two reasons we are so passionate about this type of loan. If you are a real estate agent or Realtor in Miami, Kendall, Hialeah or Coral Gables, FL, contact Great Florida Lending Inc. and our loan officers will be happy to answer your questions today.