Clients at or near retirement age have specific financial needs. At age 65, many people don’t have enough savings to maintain their standard of living during retirement. Many seniors downsize their home for easier living, both physically and financially. A reverse mortgage may help your clients make the most of their retirement years. Reverse mortgages are more highly regulated than ever in their history, making one an option you and your clients can trust.
With a reverse mortgage, real estate professionals have another way to tap into the aging Baby Boomer market. This rapidly expanding over-60 crowd may want to “right-size” their home, relocate to a warmer climate, or move near family.
A Home Equity Conversion Mortgage (HECM) for Purchase from Finance of America Reverse LLC (FAR) can make it easier and more affordable for clients age 62 and older to buy a home that suits their current needs.
With you as their guide, the FHA-insured HECM loan can give clients more available cash to pay off an existing mortgage and purchase a new home.
Contact one of FAR’s HECM for Purchase loan officers to find out more about this unique resource. Reverse mortgages offer a range of benefits for you and your clients.
Clients age 62 and over have to carefully manage their finances to ensure they maximize their retirement savings.
In addition to suggesting portfolio diversification to suit a client’s age and financial status, financial advisors can offer reverse mortgages as another useful, proventool to provide additional tax-free* income. A reverse mortgage can give clients income to maintain their standard of living while withdrawing less from their retirement savings—leaving more to grow.
Clients must use the proceeds to pay off an existing traditional mortgage, which can substantially improve cash flow. They can also receive funds as a line of credit to pay for unexpected hospital bills and other expenses.
* Not tax advice. Consult a tax professional.
