Items Tagged with 'HECM for purchase'

ARTICLES

  • US Mortgage sees opportunity in down HECM market

    Establishes reverse mortgage curriculum for LOs
    In challenging times, some see defeat and steer clear, while others see opportunity and dive in. When it comes to reverse mortgages, US Mortgage Corporation has opted for the later, launching a HECM division with a multi-layered curriculum designed to teach forward LOs how to originate reverses.
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  • HECM for Purchase gives builders competitive edge

    Helps attract more buyers to 55+ communities
    For many approaching retirement age, there comes a time when it makes sense to sell the family home and downsize. But for some, downsizing is more like “rightsizing,” and the search for a new home becomes a search for a dream home.
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  • Who uses a reverse mortgage to purchase a house?

    No one, really, even though it could be a retirement gamechanger
    A little-known reverse mortgage product lets older homebuyers use their equity to purchase a house. It could help older adults free up cash at a time in life when liquidity is especially important. Too bad no one's really heard of it.
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  • Originating: Marketing to Real Estate Agents

    Last year an associate was teaching a class in our conference room to a group of 20 Realtors about various mortgages and programs available to homeowners and buyers, including reverse mortgages. He asked that I come in and answer some questions for the group as a longtime reverse mortgage originator.I answered typical questions about the product and made light of some of the facts and myths about reverse mortgages: who owns the title, how does the loan work, what options are available, etc. One of the Realtor’s mothers actually had a reverse mortgage and she shared a bit about her
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  • Originating: Will Losing the Traditional Fixed-Rate HECM Affect the H4P?

    Just a few months ago I wrote an article stating that the HECM for Purchase, or “H4P” as many have come to call it, was the “sleeping giant” of both the reverse mortgage and the real estate industries. I have believed in this product since its inception, although its performance these last few years has been anything but impressive.There is no way to deny that the limited volume of H4Ps is entirely dominated by the traditional fixed-rate product. By definition, the Purchase product demands the entire lump sum up-front to close the transaction. So, now that we know the traditional
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  • Originating: The HECM for Purchase in Texas?

    Since the days of the Republic of Texas, the Texas Constitution has prohibited the forced sale of homesteads with the exception of cases in which the mortgage, property taxes or home improvement loans went unpaid, or for property settlements in certain divorce and probate proceedings.The voters of Texas finally approved reverse mortgage lending in 1999. Since then, more than 50,000 senior homeowners have obtained a reverse mortgage. Texas now ranks second in the United States in total reverse mortgages originated. According to the Texas Department of Savings and Mortgage Lending, the state’s chief mortgage regulator, in the last six years
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  • Feature: Selling the HECM for Purchase

    The HECM for Purchase allows seniors to finance a portion of a new home using a reverse mortgage. It can be a valuable tool for someone who is looking to downsize or move closer to relatives, but who has limited funds to support this transition.In light of the dismal statistics regarding the boomer generation’s lack of retirement security, the HECM for Purchase has considerable potential and could thrive as a useful product for those who want to maintain liquidity and still purchase a new home. But despite the obvious appeal of a product that allows you to do this without
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  • Depressed Housing Market Could Spur HECM for Purchase

    The instability in the housing market has been a point of frustration for the reverse mortgage industry, but there could be a silver lining that could spur the HECM for purchase product that has failed to gain much traction.   CNN Money reported on a trend of baby boomers taking advantage of the current housing market to purchase dream retirement homes that they could previously afford.  The article relates the story of seven different couples and how they were able to acquire their ideal retirement home for about half of the price they had originally expected in the places
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  • Originating: You Can Buy a Home with a Reverse Mortgage?

    “I didn’t know that!” That’s what I heard last week from 12 owners of real estate offices representing more than 110 agents. I had just given a presentation called “HECMs for Purchase,” the use of a reverse mortgage to buy a new home. Those incredulous real estate agents are not alone! Even experienced reverse loan officers do not understand how the “P-HECM” can improve the lives of seniors, with the bonus of adding an entirely new referral source to the mortgage broker’s database. Will you take the lead and be the first P-HECM trusted advisor in your marketplace?   How
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