Now that we have several months of Reverse for Purchase under our belts, it's a good time to step back and look at where we are. This valuable addition to our menu of programs has certainly made a difference in the lives of seniors and I predict it will continue to increase in popularity.
For some of us who have not been in the loop on the purchase market for a while, we feet a bit nostalgic. We're able to go back to working with our Realtor partners again, and this time with a product that could truly enhance someone's life. There is a need for some education to be provided to all parties to be sure the transaction is structured properly, but all things considered, I have welcomed this challenge.
And given the way this reverse for purchase transaction differs from a purchase using a forward mortgage, I have to say the experience has been a positive one for the real estate professionals I have worked with as well as the senior clients. Helping a senior obtain a home that better meets their needs now and in the future is truly a task worth pursuing.
Just a few reminders on the parameters of the program:
1) The senior must occupy the home as the primary residence within 60 days of closing.
2) Reverse mortgage counseling is required.
3) The home must be 100% complete at the time the reverse mortgage application is taken if the home is new construction.
4) As with any reverse mortgage, all borrowers must be at least 62 years old.
5) Any funds required for closing must come from the borrower's own resources (no seller seconds or contributions, etc., are permitted).
Continue to get the word out about this innovative reverse mortgage program and educate the real estate professionals in your area on how to utilize the concept. One of the ways I have done this over the years is to teach a reverse mortgage class for continuing education credit at the local real estate boards.
Put on seminars at the offices you call on. Show the real estate professional how to include this in a discussion with a senior who is listing a home. The purchase of another home may be the right choice for the senior rather than going into an apartment or moving in with family. You'll renew those relationships and position yourself as a true expert in your market.
Sue Haviland is a reverse mortgage consultant in Baltimore and the founder of Reverse Mortgage Success, a leader in the training and education for originators around the country in the rapidly growing reverse mortgage arena. Ms. Haviland has worked in the lending industry since 1981. She has been originating reverse mortgages for the last six years and still originates loans every day. She has helped hundreds of families all over the country in the last several years. Sue also shares her knowledge of this market in presentations before the Women's Council of Realtors, Mortgage Bankers Association, National Association of Professional Mortgage Women, and SRES - Senior Real Estate Specialists, Brian Sacks' Insider Seminars, as well as the public. Sue is a Certified Senior Advisor and is active in many professional organizations. Sign up for her free 7-part mini-course at
