✅We will be discussing basic product information, borrower qualifications, and compensation models under our new referral platform. We will also strategize how to network with realtors using the HECM for Purchase, which allows a senior to buy a home using a reverse mortgage. To learn more about this program please contact Doug Ziegler at email@example.com or go to http://www.financeofamerica.com/products-and-services.
Here’s what you’ll learn:
The Federal Housing Administration (FHA) is a United States government agency created in part of the National Housing Act of 1934. It sets standards for construction, underwriting, and insures loans made by banks and other private lenders for home building.
(1:36) Reverse Mortgage: A financial agreement in which a homeowner relinquishes equity in their home in exchange for regular payments, typically to supplement retirement income.
-Designed specifically for seniors, 60 years or older.
Principles: Looking at the home value, age of the bower, interest rate involved in the loan to determine how much money is available for the senior.
This money is made available to use at their discretion.
Home health care, pay off existing expenses, monthly income.
(2:10) NO repayment as long as they live in the home.
As long as they live in the home, they are responsible for up keeping the property, maintenance, paying obligations (taxes, insurance, etc.)
Reverse Mortgage is meant to give them access to the equity. To either eliminate part of their current expenses or to generate more cash flow.
The original programs were “equity shares” where the bank used to take ownership. This no longer happens.
FAH has put protection in place, safe guards and counseling for seniors. It’s really evolved and has been truly a blessing for people because without this program they couldn’t live happy or actually enjoy their retirement.
(3:30 min) Do you need an Income to qualify for this property?
There is a financial assessment. It’s pretty simplified. Residuals income and credit history check to make sure that they can fulfill and pay their obligations
Eligible properties: Primary residents, approved condos, certain manufacture homes, two family homes. Different options to help you qualify.
General rule of thumb about 40% equity.
4 different variations of the reverse mortgage
1. Annual Adjustable
2. Monthly Adjustable
3. Fixed Rate Adjustable
4. Jumbo Proprietary Product (one of two which is offered in the whole country)
Most popular is the annual adjustable that has the best safe guards for the senior and provides the most flexibility for payment options.
(5:05) FHA Benefits:
Essentially we look at the individual, senior, client and we tailor it around them.
For instance, if a senior has 40,000 mortgage they are currently paying off, 20,000 in credit card debt, but they are also looking for additional monthly income, we can essentially do all of that.
-pay off your mortgage
-eliminates your monthly obligations
-pay off your credit card debt
all results in creating more cash flow, putting that money into a line of credit which is money you can ALWAYS access.
(8:45) LIVE Q&A Most commonly asked questions:
Compensation: There are 2 models on the floor right now for loan officers,
First, is the full ability to originate yourself. Simple model. Family takes 2% FOA takes 2% of the total revenue and the rest is allocated back to the branch
Second, is the referral model where you they don’t want to take the time to learn to the product and simply just refer it, the branch would still make their FHA margin.
If you are looking to originate yourself we have a full support motto, full training, partnered with our sister company FOA Reverse one of the largest companies out there doing these programs. We have extensive marketing material, training materials to get you up and running if you want to take on this process.
Do both spouses have to be 62? No they do not. (Non Borrowing Spouses)
There are certain protections that the FHA has put into place to protect the younger spouse. Originally the younger spouse would be removed from the title and forced out of the home. Now there are previsions to protect the younger spouse from that ever happening.
If you are looking to move within the next couple of years then this program probably isn’t best for you. This is a long term, sustainable product. The idea is to provide a sustainable solution for the next 5-10 years.
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