Four Ways to Sell more homes using Reverse Mortgages
1. Sell more homes with a Reverse Purchase
Most agents and many lending industry professionals are not aware that a qualified buyer can purchase a home using a Reverse Purchase Mortgage. An agent that knows this, can explain how a Reverse Purchase works and can share various scenarios of how a Purchase Reverse Mortgage can create new home sales and help clients meet their goals will have a huge advantage over a typical competing agent. Go to Purchase Reverse to get an explanation of how this works along with four Reverse Purchase case scenarios.
2. Generate more listings that lead to sales
An agent farming his territory in Anaheim engages in a conversation with a senior and learns that the couple have found the "home of their dreams" in nearby Brea. The purchase price though is $600k and they don't want to create a new monthly payment so they are resigned to stay where they are. He determines that after expenses the couple would net $400k on their Anaheim home. He explains that with a Purchase Reverse Mortgage, the couple can put $300k of the proceeds from their current home down and use the Purchase Reverse Mortgage on the balance to trade up to the home of their dreams. Additionally, they can put the remaining $100k in proceeds from the sale in the bank or let their financial planner invest it to enhance their retirement. The couple lists with the agent because he added value with his knowledge about Purchase Reverse Mortgages that 99 out of 100 agents would not even contemplate.
3. Reverse Mortgage as a catalyst to save & create deals
While prospecting a ReMax Owner/Broker stated that Reverse Mortgages have "saved deals". He went on to explain that a family with a grandmother moving in could not qualify for a conventional loan due to credit and inconsistent employment histories. The agent suggested they transfer title to the grandmother and the family was able to purchase and close escrow on the home with a Purchase Reverse Mortgage. The family would likely be renting but for the value added knowledge of the broker and agent.
You are working with a first time buyer couple with parents who want to help with the down payment as a gift in compliance with FHA guidelines. As you get to know them you learn that the parents are planning to get a HELOC on their home to provide the funds for the down. While the parents' credit is good you become concerned that their DTI might make getting the loan a challenge. You introduce the idea of using a Reverse Mortgage Refinance instead of the HELOC and find out they've been thinking about a Reverse Mortgage to pay off the first on their home. You address their initial objections, refer them to a Reverse Mortgage specialist they can trust, and after careful consideration they determine that the Reverse will pay off their loan and provide funds for the kids' down payment without creating a mandatory monthly loan payment. You coordinate FHA seasoning requirements for the kids' purchase and your value add knowledge improves the parent's cash flow as well.
You are a hero!
