1Youre a Baby Boomer. At 62+, you can buy a brandnew Smart Green Home for HALF PRICE.Why is it SMART?You make a onetime payment of approximately $70,000-$90,000 using ReversePurchase Mortgage, a special program guaranteed by the Federal Government. This ishalf the price of a brand new, average size Smart Green Home.The other half is financed by the bank with no income, no credit, no assets verification.Youll NEVER make a mortgage payment for the rest of your lifeExpect to pay approx. $150/month for power, water and insurance COMBINED!Florida Real Estate taxes are some of the lowest in the country and Flagler County hassome of the lowest in the State. Along with our homestead exemption of $50,000 it’sanother smart reason to build our Smart Green Home.Our houses are built without products that contain formaldehyde, chlorofluorocarbons,asbestos, fiberglass or other toxic materials. We use only Certified Green: Zero VOCPaint, Cabinetry and Carpet.It’s virtually allergen, mold, pollen, pollutant and dust free.The healthy environment inside keeps the occupants healthy, minimizing the need tovisit the doctor quite so often.Reverse Purchase Mortgage Program.Youve built-up a nest egg, have a "retirement fund," have come into a bequest, havemembers of your family able to "gift" you or and friends able to "back" you.You can enjoy paradise year round in a certified Florida Green Home and, all withouthaving to pay one thin dime to a mortgage holder… EVER!
2If youre a Baby Boomer whos 62+, this is your plan. Through a relatively simple transaction, you can Reverse Purchase your certifiedGreen Home in paradise, Making a onetime payment of roughly 50% of the contract amount, and nothingmore. The other half is financed by the bank with no income, no credit, no assetsverification. You hold title to your new Smart Green Home, and dont pay any financialinstitution anything for the rest of your life. The arrangement is guaranteed by the U.S. Government!Reverse Mortgage Program.You can enjoy the best of both worlds... with a Reverse Mortgage.Live in your current home for the "good months" and in a certified Smart Green Home,in paradise, for all the other times, all with no monthly mortgage payment, all withouthaving to pay one more thin dime to a mortgage holder… EVER!Youve owned your current home for quite some time. By todays standards, you paidvery little for it and over the course of time, it has appreciated. Its worth more, even intodays market, than you may have expected. But, selling it outright -today- may not bean easy task.Your current home is either paid-off OR theres very little remaining on themortgage. Along the way, youve taken very good care of that home.Now its time for that home to take care of you! If youre a Baby Boomer whos 62+, thisis your plan. In effect, you can own two homes, not one, and not be indebted to any financialinstitution for a mortgage payment for the rest of your life. Your current home, that youve taken such good care of over the years, is yournest egg. Your equity in it (or, outright ownership of it) is, now, your line of creditto obtain your piece of paradise; your Florida Green Home in Greater PalmCoast/Flagler Beach/The Hammock.
3 Through a relatively simple transaction, you can obtain a Reverse Mortgage thatwill give you, in cash, up to 50% of the value of your current home. That can be used to purchase your Smart Green Home outright. Now, you own TWO homes living a lifestyle that many cannot. You hold title toboth of them, and dont pay any financial institution anything for the rest of yourlife. The arrangement is guaranteed by the U.S. Government!Smart Homes for Smart People.Buying a Brand New Smart Green Home (through government guaranteed programs)means the buyer only has to come up with $70,000 - $90,000 (using Reverse PurchaseMortgage).We -simply- have to ask “Why wouldnt you want to wake up in the morning, throw openthe sash or walk out the door, and smell the crispness of the pine, the sweetness of theflowers, watch the palms gently swaying in the ocean breeze, and take in the 24/7/365green environment that, Mother Nature has so bountifully provided?"Greater Palm Coast/Flagler Beach/The Hammock is that paradise.Live in a Certified Green ecological area that provides a healthy environment and anactive lifestyle.Calculate your savings.Retired people living in our healthy, robust Florida climate have healthier and moreactive golden years.So, let’s calculate how much money a couple 62+ can save when they buy a new SmartGreen Home; one with three bedrooms, two baths and a two car garage - a total livingarea of approximately 1300 sq. ft.; making use of a program guaranteed by the FederalGovernment.Where do the savings come from? How can you calculate what you’re going to save?Assuming a period of 20 years, or 240 months, our calculations of average savingsshow:
41. You will not be paying a monthly mortgage, which could be around$500/month. Multiply that by 240 months = $120,000.2. You will be saving on your power, water and insurance payments, in theneighborhood of $150/month. Multiply that by 240 months = $36,000.3. You will be saving on repairs and maintenance, because your home is brand newand of the highest quality.4. Your savings over a 20 year period while living in a Smart Green Home couldpossibly be in the neighborhood of $156,000.ONE HUNDRED FIFTY SIX THOUSAND DOLLARS IN SAVINGS for 20years living inGreen home built by Florida Green Homes, LLC.Want a child and your grandchildren to live close to you, butseparately?We can build you a two-family home. You live in one half; your child and family in theother.With you as the owner, neither you nor your child will make a monthly mortgagepayment ‘til the end of your life. The Federally guaranteed program allows you to dothis!Multiply the savings on power, water, insurance and monthly mortgage payments bytwo families and the potential savings over the course of living in a Smart Green two-family home for 20 years could possibly be $300,000.Of course, you have the option of renting the other side out to afamily that’s not related to you, and you’ll benefit from receiving thatmonthly rent check.What kind of value do you place on peace of mind? Many retirees never think aheadabout how they’ll pay a monthly mortgage, or their utility bills and homeownersinsurance premiums. Some of these expenses are bound to go up while pension andSocial Security payments will not.
5Asks & Questions.1. Am I eligible for a reverse mortgage?To qualify for a reverse mortgage, you must: Be at least 62 years old. In the case of a couple or co-owners, both must be 62 iftheir names appear on the title to the home. * Be a homeowner with equity in your home. You may qualify even if you have anoutstanding balance on your first mortgage. Single-family homes and qualifiedcondominiums, townhouses, manufactured homes, and 1- to 4-family owner-occupied residences are eligible. Cooperative apartments may be eligible byyear-end 2002.* If one spouse or co-owner is under 62, that persons name must be removedfrom the title so that the other person can qualify for the reverse mortgage.2. How much money can I get?This depends on a few factors, including your age at the time of loan closing, the valueof your home, the amount of built-up home equity, and interest rates at the time oforigination. Other factors are the type of reverse mortgage product and particularpayment option you select.Calculators that can help you estimate how much you could receive under differentproducts and payment options are available at NRMLAs Web site(http://www.reversemortgage.org), and from most reverse mortgage lenders andcounselors.YOUR HOME MUST BE DEBT-FREE TO QUALIFY FOR A REVERSE MORTGAGE.INCORRECT. Even seniors with an outstanding first mortgage or some other debt ontheir home may qualify for a reverse mortgage. The proceeds of the reverse mortgage,though, must first be used to pay off such debts.3. What are my payment options?You decide how to receive the money generated by a reverse mortgage. In general,your payment options are: An upfront lump sum payment; Line of credit; Fixed monthly payments for as long as you remain in your home (or apredetermined, shorter period); or, if you choose,
6 A combination of monthly income and line of credit.4. How much does a reverse mortgage cost? What are the upfront and closingfees?Many of the same costs of home purchase mortgages apply to reverse mortgages. Youcan expect to be charged an origination fee, an upfront mortgage insurance fee (forFHA Home Equity Conversion Mortgages, or HECMs), an appraisal fee, and certainother standard closing costs. In most cases these fees and costs are capped and maybe financed as part of the reverse mortgage.5. Do I need to get an appraisal of my home to get a reverse mortgage?Yes. Since the value of your home is a factor in determining how much money you canget from a reverse mortgage, an appraisal is required. Normally the lender will order theappraisal, which is paid for by the borrower at the time of application.6. Do I need a lawyer to apply for a reverse mortgage?Legal counsel is not required. However, NRMLA encourages you to seek the advice ofa legal, tax, or financial advisor before committing to a reverse mortgage.7. Am I required to receive counseling before I get a reverse mortgage?Yes. Counseling, one of the safeguards of reverse mortgages, is required for all threecurrent reverse mortgage products before you can obtain a loan.Counseling is an educational session at which you are informed about reversemortgages and your other options. You can get the name of a local counseling agencyor qualified telephone counselor from a reverse mortgage lender or by calling AARP (toll-free 1-800-424-3410) Fannie Maes Homepath service (toll-free 1-800-732-6643) HUDs Housing Counseling Clearinghouse (toll-free 1-888-466-3487).8. Is the money from a reverse mortgage taxable income?Funds from a reverse mortgage are tax-free; its your money, not additional income.9. Will it affect my Social Security benefits or other government benefits?A reverse mortgage does not affect regular Social Security or Medicare benefits. Toassess the impact, if any, on other federal or state assistance or medical programs, youmay wish to consult with your local Area Agency on Aging (to locate, call 1-800-677-1116, or visit http://eldercare.gov), a reverse mortgage lender, or a tax attorney.
7THE BANK OWNS THE HOME AFTER YOU GET A REVERSE MORTGAGE.INCORRECT. You own your home and retain title throughout the life of the reversemortgage.Once you permanently move out of your home or pass it to your estate, the loan mustbe repaid.10. Who owns title to my home while my reverse mortgage is outstanding – thebank or me?You retain title to your home during the period when you have a reverse mortgage, justthe same as with a regular home purchase mortgage.11. Am I required to pay anything during the course of the reverse mortgageloan?No. The flow of payments is reversed during the term of the reverse mortgage – thelending institution pays you. However, you are responsible for keeping up payments foryour homeownersinsurance and property taxes, and to maintain the condition of your home.12. Are there any limits on how I can use the funds from a reverse mortgage?No. Borrowers have spent the funds from reverse mortgages for a variety of purposes.Among these have been to pay health care expenses, supplemental retirement income,home improvements, home modifications, higher education, gifts to others, and long-term care insurance premiums. Some have used a reverse mortgage to purchaserecreational vehicles, start a small business, and travel the Amazon. Some have usedreverse mortgages to eliminate expenses by paying off mortgages and credit card debt.The only limit on how you use a reverse mortgage is your imagination.13. What is the interest rate on a reverse mortgage and how is it determined?The interest rate varies by type of reverse mortgage. For the HECM, the most popular product, the interest rate isadjusted eithermonthly or annually (the borrower chooses)based on an index called the "1-Year U.S. Treasury Constant Maturity Rate," which changes weekly. For monthly adjusting HECMs, the interest rate charged onthe loan for the next month is equal to the current 1-Year Treasury rate plus1.5%. For annually adjusting HECMs, the interest rate charged on the loan for thenext year is equal to the current 1-Year Treasury rate plus 2.1%.
8 For Fannie Mae Home Keeper loans, the interest rate charged on the loan forthe next month is equal to thecurrent "1-Month Certificate of Deposit Secondary Market Rate" plus 3.4%. For the Financial Freedom Cash Account loan, the interest rate charged onthe loan for the next six months is equal to the current LIBOR rate (LondonInterBank Offered Rate) plus a margin. The margin is 5.0% for the CashAccount product with the standard benefit option and 4.0% for the CashAccount product with the high benefit option. The latest 1-Year Treasury rate and 1-Month CD rate are issued by theFederal Reserve Board, and are published – along with the LIBOR rate – infinancial newspapers. Interest charged on a reverse mortgage is "accrued."That is, there is no payment of interest until the loan comes due.14. What are equity share reverse mortgages?Loans with an equity share feature allow you to receive a greater cash benefit inexchange for a portion of your homes future value. One of the reverse mortgageproducts currently available offers an equity share option. The potential amount sharedis limited by an overall interest rate cap. All reverse mortgages offered today have built-in consumer protection features that prevent you or your heirs from owning more thanthe value of your home at the time the loan comes due – even if your home declines invalue. This risk is assumed by the lender.WHEN A REVERSE MORTGAGE COMES DUE, THE BANK SELLS THE HOME.INCORRECT. When the loan must be repaid, you or your heirs can either pay thebalance due on the reverse mortgage and keep the home, or sell the home and use theproceeds to pay off the reverse mortgage.15. What happens if I move out of my house after I get a reverse mortgage?Once you no longer occupy your home as your principal residence for more than oneyear, the reverse mortgage comes due and must be repaid. Similarly, if you sell yourhouse, the reverse mortgage comes due.16. What happens when my house gets passed to my heirs?Once your home is passed to your heirs, the reverse mortgage comes due. Your heirsmay either pay the balance due on the reverse mortgage and keep the home, or sell thehome and use the proceeds to pay off the reverse mortgage. If they sell the home, theyget to keep any excess sales proceeds.
917. And most important – Where can I get a reverse mortgage?Reverse mortgages are offered mostly by private, specialized lenders. For a list oflenders who belong to NRMLA who offer reverse mortgages in your state, visitNRMLAs Web site, http://www.reversemortgage.org (Click on Find a Lender), or callNRMLA, 1-866-264-4466.COME BUILD WITH US YOUR HEALTHY, ACTIVE, ECONOMICAL LIFESTYLE!Read on…Youve put in your time, youve paid your dues and, your lifes just about to begin!Come live with us in paradise. Full or part time. Its your choice.We -simply- have to ask “Why wouldnt you want to wake up in the morning, throw openthe sash or walk out the door, and smell the crispness of the pine, the sweetness of theflowers, watch the palms gently swaying in the ocean breeze, and take in the 24/7/365green environment that, Mother Nature has so bountifully provided?"Greater Palm Coast/Flagler Beach/The Hammock is that paradise.Palm Coast, by-the-way, is one of the few cities in Florida certified Green by the FloridaGreen Building Coalition.Theres so much to see, experience and participate in, here. Its a lifestyle like no other!The air is crisp and clean. Theres little traffic or congestion. The schools are top-notch.There are houses of worship representing a broad spectrum of faiths.And, lets not forget, Stage shows and concerts. There are local productions of highquality; and "bus & truck" performances from the entertainment centers of the countrypresented locally, as-well-as in St Augustine and Jacksonville to the North; DaytonaBeach and Orlando to the South… both easily reached within an hour or so.Restaurants and cuisine for all tastes; served in beautiful, formal restaurants, casualpubs and outdoor cafes - by staff that care about your enjoyment and who smile as theygo about their duties
10 Golf… one of the highest "golf courses per capita" areas in the country Tennis… courts galore, and a community tennis center recently recognized andawarded the Outstanding Public Facility Award for 2010 by the U.S. TennisAssociation. Fresh water and ocean fishing - deep sea, pier and beach Hiking/jogging/biking trails… miles and miles of them Historic preserves… steeped in the history of Florida and the Nation Youth, sports and nature parks… virtually everywhere you look The Atlantic Ocean and the Inland Waterway… bring your watercraft OR rentone, here And all of this is within minutes of a desirable home site. Your home site! A ten or fifteen minute walk or drive brings you to all the area has to offer… notan hour PLUS excursion. Our lifestyle is healthy… active… yet, relaxing. It just doesnt get much better than this ! ! !How could it get any better ? ? ?Why, your residence, of course. If youre living in paradise, shouldn’t your home rise tothe same standard?Each Florida Green Homes owner receives certificates from six different organizationsattesting to the fact that their new home is certified green… including -on the Federallevel- the Environmental Protection Agency.
11The Platinum Certificate depicted is one of a very few awarded by the Florida GreenBuilding Coalition throughout the State. It is an honor and an industry recognition weare, rightly, proud of. It represents being awarded some of the highest point tallies in abroad range of categories; all dealing with safety, health, energy efficiency, eco-friendliness, and more!Without any housing payments due for the rest of your life andanticipated savings on you utilities, maintenance and insurance… youwill be healthy and live a long life – free of financial problems.