Reverse Mortgages from Gefen Financial Corp. Enabling older homeowners to turn home equity into tax-free income.
Gefen Financial Corp <ul><li>Dovid Winiarz  President and Chief Mortgage Manager .... </li></ul><ul><li>Helping people man...
Reverse Mortgage Program <ul><li>Enables homeowners age 62 and older to tap the equity they have in their home and receive...
Some Benefits of the Loan  <ul><li>The homeowner always retains title and ownership of the home </li></ul><ul><li>Cash adv...
Eligibility <ul><li>62 years of age or older  (Revocable Trusts, Guardianships, Conservatorships, DPOA’s) </li></ul><ul><l...
Principal Residence <ul><li>The property must be the principal residence of each borrower </li></ul><ul><li>Married spouse...
Properties Eligible <ul><li>1 - 4 Unit Dwellings </li></ul><ul><li>Town homes / Condominiums </li></ul><ul><li>PUD’s </li>...
How much can be received? <ul><li>Age of the youngest homeowner </li></ul><ul><li>Current interest rate </li></ul><ul><li>...
Payment Plan Options <ul><li>Term  </li></ul><ul><ul><li>monthly payments for a specified period of time </li></ul></ul><u...
Payment Plan Flexibility <ul><li>In the HECM program, the borrower may change payment plans at any time </li></ul><ul><li>...
Settlement Costs <ul><li>Origination Fee </li></ul><ul><li>Mortgage Insurance Premium (MIP)  </li></ul><ul><li>Traditional...
Origination Fee <ul><li>This fee covers the lender’s administrative costs in processing and underwriting the loan </li></u...
Mortgage Insurance Prem.  <ul><li>Reduces the risk of loss in the event that the outstanding balance, including accrued in...
FHA Allowable Fees <ul><li>Appraisal </li></ul><ul><li>Title Insurance </li></ul><ul><li>Credit Report </li></ul><ul><li>R...
Adjustable Interest Rate <ul><li>Set by the U.S. Treasury Securities rate adjusted to a constant maturity of 1 year </li><...
Servicing Fee <ul><li>Lender is permitted to charge a servicing fee </li></ul><ul><li>Fee is established at closing as a m...
Consumer Protections <ul><li>Non-Recourse </li></ul><ul><li>No Prepayment Penalty </li></ul><ul><li>Three Day “Right of Re...
Counseling Requirement <ul><li>Ensures the participant understands how the program works </li></ul><ul><li>Examine options...
After Loan Closing <ul><li>Annual Payment of Property Taxes </li></ul><ul><li>Annual Payment of Homeowners Insurance </li>...
Termination Actions <ul><li>All the borrowers have died or sold the property </li></ul><ul><li>Property is no longer princ...
Recovery of Mortgage Proceeds <ul><li>When the borrower does not occupy the property for 12 consecutive months </li></ul><...
Requirements for Appraisals <ul><li>Property must meet Minimum Property Standards for existing properties </li></ul>
Required Repairs  (Less than 15%) <ul><li>Repairs that are estimated to cost less than 15% of the maximum claim amount can...
Tax Effects <ul><li>Payments received by the borrower are not taxable, as they are loan payments </li></ul>
Limited Liability <ul><li>The “non-recourse” provision of the program limits the borrowers liability to the net sale proce...
Prepayment <ul><li>The loan may be repaid either in whole or in part, at any time without penalty </li></ul><ul><li>If the...
Effect on Public Benefits <ul><li>Proceeds are considered a loan and  not  as income </li></ul><ul><li>Will  not  effect S...
Upcoming SlideShare
Loading in …5
×

Gefen Financial - New York Mortgage Broker

1,675 views

Published on

At Gefen Financial, we help people to manage their finances through debt consolidation, mortgages & loans for residential and commercial real estate properties, and equity financing.

Published in: Economy & Finance, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,675
On SlideShare
0
From Embeds
0
Number of Embeds
14
Actions
Shares
0
Downloads
6
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Gefen Financial - New York Mortgage Broker

  1. 1. Reverse Mortgages from Gefen Financial Corp. Enabling older homeowners to turn home equity into tax-free income.
  2. 2. Gefen Financial Corp <ul><li>Dovid Winiarz President and Chief Mortgage Manager .... </li></ul><ul><li>Helping people manage the debt through mortgage and equity financing since 1986 </li></ul>
  3. 3. Reverse Mortgage Program <ul><li>Enables homeowners age 62 and older to tap the equity they have in their home and receive tax-free income </li></ul><ul><li>No repayment is required until the home is no longer their principal residence </li></ul><ul><li>There are no income, asset, employment or credit requirements to participate </li></ul>
  4. 4. Some Benefits of the Loan <ul><li>The homeowner always retains title and ownership of the home </li></ul><ul><li>Cash advances can be used for any purpose </li></ul><ul><li>No Fixed Maturity Date </li></ul><ul><li>Tax-free income will not affect Social Security or Medicare benefits </li></ul>
  5. 5. Eligibility <ul><li>62 years of age or older (Revocable Trusts, Guardianships, Conservatorships, DPOA’s) </li></ul><ul><li>Own home free and clear or have a balance that can be paid off with the reverse mortgage </li></ul><ul><li>Occupy property as principal residence </li></ul><ul><li>Agree to attend a informational session with an approved counseling agency </li></ul>
  6. 6. Principal Residence <ul><li>The property must be the principal residence of each borrower </li></ul><ul><li>Married spouses or other co-borrowers may be living apart because one of them is in a health care facility; however </li></ul><ul><li>At least one borrower must be living in the home in order for the HECM to close </li></ul>
  7. 7. Properties Eligible <ul><li>1 - 4 Unit Dwellings </li></ul><ul><li>Town homes / Condominiums </li></ul><ul><li>PUD’s </li></ul><ul><li>Manufactured / Mobile Homes </li></ul><ul><li>(FHA Standards) </li></ul><ul><li>Life Estate </li></ul><ul><li>Leasehold Interest in Property </li></ul><ul><li>Co-op’s (Pilot in NY State only) </li></ul>
  8. 8. How much can be received? <ul><li>Age of the youngest homeowner </li></ul><ul><li>Current interest rate </li></ul><ul><li>Market value of home </li></ul><ul><li>County where property is located </li></ul>
  9. 9. Payment Plan Options <ul><li>Term </li></ul><ul><ul><li>monthly payments for a specified period of time </li></ul></ul><ul><li>Tenure </li></ul><ul><ul><li>monthly payments for as long as homeowner occupies the property </li></ul></ul><ul><li>Line of Credit </li></ul><ul><ul><li>payments received upon request </li></ul></ul><ul><li>Combination of Above </li></ul>
  10. 10. Payment Plan Flexibility <ul><li>In the HECM program, the borrower may change payment plans at any time </li></ul><ul><li>This flexibility enables the homeowner to reshape the loan as circumstances change </li></ul><ul><li>Administrative charge of $20 </li></ul>
  11. 11. Settlement Costs <ul><li>Origination Fee </li></ul><ul><li>Mortgage Insurance Premium (MIP) </li></ul><ul><li>Traditional “FHA Allowable” fees </li></ul>
  12. 12. Origination Fee <ul><li>This fee covers the lender’s administrative costs in processing and underwriting the loan </li></ul><ul><li>Borrower is permitted to finance a minimum fee of $2,000 and no more than 2% of the Maximum Claim Amount </li></ul>
  13. 13. Mortgage Insurance Prem. <ul><li>Reduces the risk of loss in the event that the outstanding balance, including accrued interest, MIP, and fees, exceeds the value of the property at the time the mortgage is due and payable </li></ul><ul><ul><li>A one-time non-refundable initial MIP equal to 2 % of maximum claim amount </li></ul></ul><ul><ul><li>A monthly MIP equal to one-twelfth (1/12) of the annual rate of 0.5 % of the balance </li></ul></ul>
  14. 14. FHA Allowable Fees <ul><li>Appraisal </li></ul><ul><li>Title Insurance </li></ul><ul><li>Credit Report </li></ul><ul><li>Recording Fee </li></ul><ul><li>Termite Report </li></ul><ul><li>Flood Zone Certification </li></ul><ul><li>Document Preparation </li></ul>
  15. 15. Adjustable Interest Rate <ul><li>Set by the U.S. Treasury Securities rate adjusted to a constant maturity of 1 year </li></ul><ul><li>Monthly (Margin: 150 bps) or Annually (310 bps) Adjustments </li></ul>
  16. 16. Servicing Fee <ul><li>Lender is permitted to charge a servicing fee </li></ul><ul><li>Fee is established at closing as a monthly figure (Currently, $30) </li></ul><ul><li>The amount necessary to pay this fee is calculated and set aside at closing </li></ul><ul><li>The lender adds this fee to the borrowers outstanding balance monthly </li></ul>
  17. 17. Consumer Protections <ul><li>Non-Recourse </li></ul><ul><li>No Prepayment Penalty </li></ul><ul><li>Three Day “Right of Revision” </li></ul><ul><li>Advance Disclosures </li></ul><ul><li>Third Party Counseling </li></ul>
  18. 18. Counseling Requirement <ul><li>Ensures the participant understands how the program works </li></ul><ul><li>Examine options other than a reverse mortgage that might better meet the needs of the client </li></ul><ul><li>Provided by a HUD-approved agency </li></ul>
  19. 19. After Loan Closing <ul><li>Annual Payment of Property Taxes </li></ul><ul><li>Annual Payment of Homeowners Insurance </li></ul><ul><li>Maintenance of Property </li></ul><ul><li>To Make Repairs, if required </li></ul>
  20. 20. Termination Actions <ul><li>All the borrowers have died or sold the property </li></ul><ul><li>Property is no longer principal residence of at least one borrower for a period exceeding 12 months </li></ul><ul><li>Borrower refuses to fix property in disrepair </li></ul><ul><li>Borrower violates any other covenant </li></ul>
  21. 21. Recovery of Mortgage Proceeds <ul><li>When the borrower does not occupy the property for 12 consecutive months </li></ul><ul><li>Loan must be repaid in one lump payment </li></ul><ul><li>Usually the loan balance is paid from sale proceeds of the home </li></ul><ul><li>A non-recourse loan </li></ul>
  22. 22. Requirements for Appraisals <ul><li>Property must meet Minimum Property Standards for existing properties </li></ul>
  23. 23. Required Repairs (Less than 15%) <ul><li>Repairs that are estimated to cost less than 15% of the maximum claim amount can be completed after closing </li></ul><ul><li>At closing, the borrower must establish a repair set aside at least equal to 150% of the cost or repairs, plus a repair administration fee </li></ul>
  24. 24. Tax Effects <ul><li>Payments received by the borrower are not taxable, as they are loan payments </li></ul>
  25. 25. Limited Liability <ul><li>The “non-recourse” provision of the program limits the borrowers liability to the net sale proceeds from the sale of the property </li></ul><ul><li>No deficiency judgement may be taken against the borrower or the estate </li></ul>
  26. 26. Prepayment <ul><li>The loan may be repaid either in whole or in part, at any time without penalty </li></ul><ul><li>If the loan is repaid if full, this will terminate the loan and further draws would be unavailable </li></ul><ul><li>A partial repayment can be used to increase the monthly payment or set up a line of credit (revolving credit) </li></ul>
  27. 27. Effect on Public Benefits <ul><li>Proceeds are considered a loan and not as income </li></ul><ul><li>Will not effect Social Security, Medicare or others programs that are not based on need </li></ul>

×