Reverse mortgage for homepurchaseNew business-building opportunity for youReverse Mortgage SpecialistFirstBank Mortgage FirstBank… Where YOU Matter Most!
Trusted leadership you can count on –meeting the needs of senior homeowners FirstBank is committed to helping seniors age 62 or older use the equity in their homes to realize financial independence and peace of mind. Now with the new reverse mortgage for purchase program, count on FirstBank to help provide a new home financing option for your senior homebuyers. 2 2
Table of contents What is a Reverse Mortgage? What is the Home Equity Conversion Mortgage (HECM) for Purchase? How can it help you build your business? How can it help senior homebuyers? Example of a HECM for Purchase transaction Frequently asked questions 3 3
What is a reverse mortgage? A reverse mortgage is a non-recourse loan that enables senior homeowners — age 62 and older — to convert a portion of their home’s equity into tax-free1 funds There are no income, health, employment, or credit-score qualifying requirements2 The amount of funds clients can qualify for is based on their age, the property’s value and current interest rates Funds may be obtained in a lump sum, monthly payments, a line of credit, or a combination of any of these options Applicants must agree to participate in a counseling session with a HUD approved agency Homeowners retain title to the property and continue to own their home1. Consult a tax advisor9. Loan proceeds are not considered income and will not affect Social Security or Medicare benefits. Monthly reverse mortgage advances may affect borrower eligibility for other programs. Consult either a local program office or an attorney to determine how, or if, monthly reverse mortgage payments might affect a specific situation.10. As long as all program requirements are met. 4
Reverse mortgage for purchaseWhat is the Home Equity Conversion Mortgage(HECM) for purchase? An FHA-insured reverse mortgage Enables senior homebuyers, age 62 or older, to purchase a new primary residence and obtain a reverse mortgage in simultaneous transactions with no monthly mortgage payments Allows buyers to combine reverse mortgage proceeds with a down payment from their current home sale or other assets, to purchase a new home 5
Reverse mortgage for purchaseHow can it help build your business? Expand your customer base to include senior homebuyers now able to take advantage of this new financing option You may be able to sell more homes with this new financing option Real estate agents may benefit from two potential transactions– a home sale and purchase 6
Reverse mortgage for purchaseHow can it help senior homebuyers? Purchase a new home without taking on a new monthly mortgage payment Purchase a primary residence suitable for their current needs Purchase a home in a senior housing community Move into a new home that’s easily accessible with modern amenities Downsize to a smaller, easier-to-maintain home Relocate closer to friends and family members 7
Reverse mortgage for purchaseHow does the program work?Step one: Gloria and Ted Palmer, both 74, want to buy a more accommodating single-story home They work with real estate agent Jane Mills to sell their current two-story home In a separate transaction, they look into buying a new single- story home in a housing development being built by Bill Davis The Palmers meet with Mills and Davis and look at several homes priced at $300,000 8
Reverse mortgage for purchaseHow does the program work?Step Two: Mills introduces the Palmers to Chris Beard, a reverse mortgage consultant with FirstBank Mortgage Chris shows the Palmers how the reverse mortgage for purchase could provide the additional funds they’ll need4 Purchase Price $300,000 Reverse Mortgage Proceeds $177,000 Cash Required To Close $123,0004. Actual loan amounts available depend on the rates in effect when a loan is closed and the actual origination fee and closing costs charged, the appraised home value and current equity loan limits in your county. 9
Reverse mortgage for purchaseHow does the program work?Step Three: The Palmers combine the $101,920 from the sale of their departure home, as a down payment with the $198,080 reverse mortgage to purchase a new home for $300,000 — and have no monthly mortgage payments! Jane Mills handles two real estate transactions for the Palmers5 Bill Davis sells another home in his housing development Chris Beard shows the Palmers how the reverse mortgage for purchase could provide the additional funds they’ll need to purchase a new home.5. Purchase and sale transaction can be handled by one or more real estate agents. 10
Frequently asked questionsWhat sources are allowed for the cash required to close?6 The sale of the departure home The sale of the homebuyer’s other assets The homebuyer’s savingsWhat sources cannot be used for the cash required to close? Seller financing and concessions Cash withdrawn from credit cards A bridge loan of any kind Subordinate financing Gift money from parties involved in the transaction Down payment assistance programs (DAPs)6. These are examples of what sources may or may not be used to cover the cash required to close. For detailed information please contact your Reverse Mortgage Consultant. 11
Frequently asked questionsWhat property types are eligible? Single family HUD-approved condos Planned unit developments (PUDs) Two- to four-unit properties (one must be owner-occupied) Manufactured homes built after June 15, 1976What property types are not eligible? Co-ops Second homes Boarding houses Bed and breakfast establishments Manufactured homes (built before June 15, 1976) and any on leased land 12
Frequently asked questionsWhat requirements must the new home meet? Must become the buyer’s primary residence Must be occupied by the buyer within 60 days from closing date Construction must be complete, the property habitable, and a certificate of occupancy or its equivalent issued prior to the loan application 13
Essential facts Enables senior homebuyers age 62 or older to purchase a new home without taking on monthly mortgage payments Reverse mortgage customers receive title to their new home. The sale of a departure home is a completely separate transaction from the purchase and reverse mortgage for purchase transaction Reverse mortgage is placed on the new primary residence Reverse mortgage proceeds will be calculated based on the youngest homebuyer’s age and the lowest value of either the new home’s sale price or appraised value or the national HECM lending limit 14
An industry leaderWell Established. Well Respected. FirstBank. FirstBank is Tennessee’s largest independently owned and operated bank, with locations across the state. The bank, headquartered in Lexington, TN, services every major metropolitan market in the state and, with $2 billion in total assets, has the resources to provide a comprehensive variety of financial services and products. FirstBank Mortgage offers Mortgage Banking Services in 45 States. 15
Together, we can make this new business- building opportunity yours! Contact Information Chris Beard, NMLS# 353274 Reverse Mortgage Specialist 9822 Montague Street Tampa, FL 33626 Cell: 813-857-1254 Toll Free: 866-684-7868 email@example.com www.GoLocalReverseMortgage.comBorrowers must be age 62 or older. Consult a tax advisor. Reverse mortgage borrowers are required to obtain aneligibility certificate by receiving counseling sessions with a HUD-approved agency. Family members are alsostrongly encouraged to participate in these informative sessions. Call for more detailed program information. Loanproceeds are not considered income and will not affect Social Security or Medicare benefits. Monthly reversemortgage advances may affect borrower eligibility for other programs. Consult either a local program office or anattorney to determine how, or if, monthly reverse mortgage payments might affect a specific situation. Thisinformation is for real estate and building professionals only and is not intended for consumer distribution.Information is accurate as of the date of printing and is subject to change without notice. NMLS# 472433 16
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