Reverse: For Real Estate Agents
$10,000 people per day in the United States turn 62. There is a huge market for senior housing needs!
One way you can help your senior clients downsize or re-size in this new phase of their life PLUS ease their monthly cash flow is through a reverse mortgage.
What do you need to know?
Who qualifies for a reverse mortgage?
At least one homeowner must be aged 62 or older. Reverse mortgages are only permitted on primary residences. The borrower must have sufficient equity in their current home, or put a high percentage down on a purchase.
The property must meet FHA property standards and flood requirements, meaning an FHA appraisal will be ordered on the property. FHA-eligible properties include 1- to 4-unit homes and HUD-approved condos and manufactured homes.
What do closing costs look like?
The borrower will pay 2% of the home value as an up-front mortgage premium to FHA, as well as traditional mortgage closing costs such as title fees, origination fees, and real estate commission/fees as applicable. These costs can be paid out of pocket at closing or added to the loan balance.