Do not try to make your Realtors loan officers. Cover the Basics. They are interested in the WIIFM. What’s In It For Me!
Additional cash can be used for upgrade or retrofitting for special handicap, medical, or safety upgrades.
Do not get into major detail on products, this is all about opportunity.
Shows the potential market and future growth for RM purchases.
Most lenders are only doing 1 unit purchases at this time, although FHA guides say it is OK for 1-4 units. Check with your lender and change this slide if necessary.
Note: Mfg. homes are OK if built after 1976
*market conditions at that the time will determine how much they will owe on current residence, to buy down on second home.
This is the best part…showing people how to help people
Keep in mind that funds must be proven in order to close on a reverse mortgage purchase. Most times, this will Involve a HUD-1 showing the purchase of the current primary. This will have to be produced to close on the purchase.
Recapping… You do not have get heavy on this elaboration…just brief as noted
Wrap up and summary. Be sure you have with your card. Include an informational kit for each Realtor. Capture all names and phone# of each realtor at your presentation Follow up with each. Send a Thank You card through our referral SOC system In REMALO… Follow up with phone calls and offer to meet with them again and with their clients when they get an appointment Or someone who is interested in making full use of their assets and perhaps preserving cash and getting their retirement Dream home.
You could use the attached questions as your pass out and use the power point as a pass out.
A Great Opportunity Everyone Should Know . . . Presented by: Patti Mazzara-NMLS #333279 Venture Development NMLS #373115 www.VentureLoanApp.com 952-285-4319
Sharon calls her local mortgage broker and inquires about different ways to finance the beach house without having to sell their primary home. Currently, there is a loan with a 50K balance and $575 monthly payment.
A cash out refinance is a possibility. This would give them the down payment for the second home. At the same time, this increases the loan payment on her primary home and gives her a new payment for the new property. This doesn’t sound too appealing. Is there something else?
Or they could try to do traditional 2 nd home financing and dip into their savings for their down payment. This would eat up their personal savings, so they’re not too excited about this option either.
Sharon is looking at the proposed and current mortgage payment on both houses, and quickly decides buying her dream house at this time is not an option. Instead, she will have to wait a couple of years when she is ready to sell her primary house.
You suggest that a Reverse Mortgage Refinance on the house they currently own would allow them to pull $92,000 out in one lump sum , after closing costs and then their current mortgage is paid in full.
Leaving them with no mortgage payment on their current primary home, freeing up $575 per month in additional cash flow.
The RM proceeds is more than enough for a 20% down payment and closing costs to purchase the second home on the golf course as their retirement home.
By doing this, they eliminated their payment on their existing house ($575) and financed only $183,000 on the second house, yielding them a payment of $982 a month. They had no problem qualifying, since their mortgage payment had been eliminated.
Gerald and Sharon went from owning one property for $575 a month to owning two properties for $982 a month. They spend every weekend playing golf for years, and sell their home in the city 2-4 years later. The sale of the 1 st home may net them enough to pay the second house off.
Because of current economic conditions and other reasons beyond seniors control, many are having to consider leaving their home primarily for affordability reasons. And in many cases some seniors cannot afford to purchase another home.
Here is a solution that should be considered!
Helping your senior client stay in their home if they wish to, but can’t really afford to purchase!
Homes everywhere have dropped in value. This means selling a home today will probably net the seller less than if they sold into a stronger economy and real estate sales environment. For the senior who needs cash today, suggest looking into a Reverse Mortgage Refinance. This is an alternative that allows them to stay in their home longer and live a better quality of life than they had ever hoped for. The senior gets to stay in their home instead of selling at the bottom of the real estate cycle and still have access to some current equity.
Careful consideration should be made to the time limitation you may have to sell the property. It is also important to remember that the clock starts ticking when the last borrower passes away or when the borrower permanently moves, not when the probate process is finalized or settlement is made on the new house. This time factor is an important consideration when selling.