As a realtor, it may seem counter-intuitive to think that you need to know the ins and outs of reverse mortgages. But in fact, a specific type of reverse mortgage available to senior borrowers today may help you grow your real estate business.
A reverse mortgage for purchase, otherwise known as a Home Equity Conversion Mortgage for Purchase, allows borrowers who are 62 and older to use a reverse mortgage to purchase a new home.
Not all home buyers will qualify, but for those who do, the HECM for Purchase can help them achieve their home buying goals, and can help you drive more business in the process.
The Realtor’s Role
Work with a loan originator. Just as loan originators work with borrowers on their forward loans, a reverse mortgage loan officer must work with the senior borrower to determine whether he or she is eligible. The earlier this is established, the faster a home can be purchased.
The realtor can lend a hand by recommending the product to homeowners who are 62 and older, and by building a relationship with a licensed loan officer in the local market who has reverse mortgage experience.
Become educated on the product. You may be able to sell more homes in your marketplace if you’re open to the idea of reverse mortgage for purchase transactions. You may even be able to boost your profit margin on those sales. Attend seminars to learn more, and build your resource library. This may mean gathering information from the Department of Housing and Urban Development, which administers the reverse mortgage program, and maintaining relationships with reverse mortgage originators.
Educate borrowers. Don’t assume that senior home buyers are familiar with the reverse mortgage for purchase. Be prepared to educate borrowers and point them to additional resources where they can learn more. Ensure you are versed in the program rules and terminology so that serious borrowers will feel comfortable continuing to work with you on the HECM for purchase transaction.
If you are interested in learning about the Reverse Mortgage for Purchase product and how you can play a role as a realtor, continue to learn more here.