Case 2: Buying more house with a Reverse Purchase
A 70 year old widow has $350k life insurance settlement for a down payment on a new home. She’s looked around but doesn’t like neighborhoods at the $350k price point. She doesn’t want to take out a loan to buy in nicer neighborhoods since she will always live on a fixed income. Her kids want her to live in a nicer area & enjoy her new home – not settle for less. You meet her and her family and realize you have an opportunity to be a hero!
Solution:
Your borrower evaluates a Reverse Purchase with the kids’ blessing. Based on her age and passing the mandatory financial assessment, she gets approval ahead of time and knows she can get a $233k Reverse Purchase. Her kids love the idea that she can now look at $583k homes in nicer neighborhoods and not have a monthly mortgage payment. You find her dream home, earn more commission on a higher priced property and now have her "sphere of influence" as a source of referrals and leads.
Please note that in this as in all Revere Mortgage scenarios, borrowers are always responsible for timely payment of property taxes, insurance and maintenance on the home.
