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Reverse mortgage  purchase pdf
Reverse mortgage  purchase pdf
Reverse mortgage  purchase pdf
Reverse mortgage  purchase pdf
Reverse mortgage  purchase pdf
Reverse mortgage  purchase pdf
Reverse mortgage  purchase pdf
Reverse mortgage  purchase pdf
Reverse mortgage  purchase pdf
Reverse mortgage  purchase pdf
Reverse mortgage  purchase pdf
Reverse mortgage  purchase pdf
Reverse mortgage  purchase pdf
Reverse mortgage  purchase pdf
Reverse mortgage  purchase pdf
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Reverse mortgage purchase pdf

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  • 1. Using A Reverse Mortgage To Purchase A Home Effective Mortgage Company 1
  • 2. A HECM (Home Equity Conversion Mortgage) is a specialtype of mortgage that enables homeowners age 62 or olderto tap into the equity in their home. Unlike traditional homeloans, no repayment of the HECM loan is required until youno longer occupy the home as your principal residence. Atthat time, the lender will declare the mortgage due andpayable. What is borrowed plus interest is due to thelender, remaining equity remains with the estate. Effective Mortgage Company 2
  • 3. The HECM is insured through FHA and is a non-recourse loan.So what does non-recourse mean?The homeowner or their heirs will never be asked to payback more than the value of the home, even if the debt hasgrown to be greater than the value. Effective Mortgage Company 3
  • 4. This sounds great for refinancing. How does the purchase work?The same way, the borrower will qualify between 61.9% to77.6% LTV depending upon their age. The older you are,the more LTV (smaller down payment) you qualify for. Sowith a purchase; figure a down payment of 22.4% to38.1%, plus closing costs.Chances are your senior borrowers may need at least thismuch of a down payment to qualify for traditional financingto get their DTI down. Effective Mortgage Company 4
  • 5. Effective Mortgage Companyusing IBIS (Reverse MortgageSoftware) can give your senior prospect an immediate down It is easy, it is fast!payment figure; all we need isa purchase price, date of birth and zip code! Effective Mortgage Company 5
  • 6. •No Mortgage Payment! (Taxes and Insurance paymentsare required and must be maintained)•Leverage crucial retirement cash liquidity•Buy up, get more house than paying cash•Cannot have had foreclosure, short sale, deed in lieu inthe last three years Effective Mortgage Company 6
  • 7. Effective Mortgage Company 7
  • 8. •SFR’s, PUDs and FHA approved Condos•No units, manufactured, log, dome, farm, etc.•No second homes or investment properties•New Construction- Not eligible until the Certificate ofOccupancy has been issued•Any repairs must be satisfied by the seller prior to closing•Home Inspection is required, new construction omitted Effective Mortgage Company 8
  • 9. •No NOD’s, short sale, deed in lieu, mortgage rating past120 days•Non borrowing spouse must have credit pulled to confirmprevious mortgage rating•All federal debt must be satisfied Effective Mortgage Company 9
  • 10. •No loan to get our loan; business, bridge, mortgage,retirement account, credit card, etc.•Proceeds from the sale of a business, real-estate, etc. areallowed. Paper trail must be documented.•All funds must be seasoned for 90 days, large depositssourced.•Mattress money, cashiers checks, etc. will not be allowed Effective Mortgage Company 10
  • 11. •Borrowers may keep existing Real Estate•All existing real estate housing expenses will beadded / buyers income (no credit for rentalincome) –Looking for 45% DTI (exceptions can bemade)•Borrowers will sign Verification of Occupancy andsome instance a Letter of Intent•Must occupy the residence within 60 days ordefault under the terms of the mortgage andforeclosure proceedings can begin Effective Mortgage Company 11
  • 12. No Concessions Allowed •No seller, concessions •No lender concession •No broker concession •No real-estate agent (buyer or seller) concession •No concession from any party in the transaction before, during, or after the loan closing •No carry back financing •No gift of equity Gift funds are allowed! – They must be sourced Effective Mortgage Company 12
  • 13. 1.Home Inspection is done late – repairs must be satisfiedby seller2.Funds are not sourced properly with a clean paper trail —90 days unless from the sale of another property, business, etc.3.Real estate agents, sellers, and brokers attempt to workin concessions Effective Mortgage Company 13
  • 14. Effective Mortgage Company 14
  • 15. Bijan R Vaziri- Mortgage Leila Vaziri- MortgageOriginator Originator• bijan1@effective-mortgage.com • leila@effective-mortgage.com • 818-773-0033 • 818-773-0033 Effective Mortgage Company 15

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