A Reverse Mortgage is one of the best financial tools out there today. It is amazing what you can do with them and the quality of life that can be had once they are put in place. There are many misconceptions that we will clear up and to start, here are some actual stories to review.
Lillian (70) had a monthly income of $2100 and a FICO credit score of 435. She sold her home, paid off the existing mortgage and had $100,000 left over. With that she purchased a $250,000 Condo. She now has NO Monthly Mortgage payments & there was NO Income verification or Minimum Fico Score.
Sam and his wife (65) sold their home and $350,000 left over. They purchased a new luxury retirement homes for $600,000. they now have NO Monthly Mortgage payments and $100,000 in cash left over AFTER it was done.
David and Kelli (ages 31) get the house they dreamed of
He was a young pharmacist and she was a nurse who just had their second child. They wanted to move into the house of their dream. But since she wasn’t going back to work right away, the mortgage they qualified for left them $60,000 short. Someone asked them if their parents would be willing to give them a gift for that amount, to which they both smiled and said “Mom and Dad don’t have that type of money” But if they did, the person asked, would they be willing to give a gift?” Mom and dad were both 65 and lived in a $300,000 home. They qualified for a Reverse Mortgage of $181,000 from which they were able to make a gift of $60,000 to their “grandchildren”. And David and Kelli moved in. Problem solved, dreams realized.
Yes, these amazing stories are all 100% true thanks to a small adjustment in the Reverse Mortgage program. The Housing and Economic Recovery Act of 2008 allows for people to use a Reverse Mortgage to PURCHASE a new home and even start the process before they go to settlement.
This is not your grandmothers Reverse Mortgage anymore. Lower Costs, Greater choices and don’t forget the 4 Nevers! What exactly are they? Glad you asked, here we go:
- Never make a monthly loan payment
- Never give up ownership or come off title of the house
- Never owe more than the value of your home
- Never be forced out of your home as long as you live in it!
Pat (65) sold her home for $300,000 and purchased a $300,000 rancher home in a community where she would never have to mow grass, shovel snow or even change a light bulb if she didn’t want to. The incredible part was that she now does not have to make Monthly Mortgage payments, she can leave the home to her kids and she had $180,000 in CASH left over after settlement.
It’s TRUE, It’s LEGAL, It’s FHA, It’s approved by Congress and it’s Waiting for you, your Mom and Dad or someone you know! And these are only a few of the stories about how the New Reverse Mortgage is changing lives.
See Below: How Much House Can You Buy
- Find nearest age of youngest borrower (70)
- Find Value of Home you want to Purchase ($400,000)
- See how much the Reverse makes available ($252,842)
- Subtract Reverse Mortgage $252,842 from Home Price $400,000 = $147,158
- $147,158 is amount a person must bring to settlement in order to move into a $400,000 Home
Got questions? Click HERE and Get the Basics of the Reverse Mortgage or call Don Graves 215-732-0814 Email: Don@RMAdvisorsGroup.com
Since 2000, Don Graves has been one of the Nations premier Reverse Mortgage educators. He teaches a 3 ½ CE Credit Course for Real Estate Professionals and a 2 CE Credit hour course for Financial Planners. He hails from Kentucky, via Cincinnati and then to Pennsylvania where he has been since 1985. He has been married for 22 years and has 3 children.