Presentation on theme: "1/19/2014Daniel Dobbs 949 250-3981 The Specifics of Reverse Mortgages Daniel Dobbs….Loan Officer (949) 250-3981"— Presentation transcript:
1/19/2014Daniel Dobbs The Specifics of Reverse Mortgages Daniel Dobbs….Loan Officer (949) Offering: ½ % Down FHA FHA /VA/ 203k 20% Down VOE /Stated Lite 5% Down No MI Reverse Mortgages 30 Day Loan Closings
1/19/2014Daniel Dobbs Introduction Daniel Dobbs; 24 yrs. as a loan consultant. Prof. public speaker. Available for speaking engagements at office meetings & trade assoc. Closed over 1,000 personal transactions. Brokers & Notary License. B.A in Communications from CSUF. Published writer, photographer. Have produced 4 RE videos & 4 highly ranked (Google) Websites.
1/19/2014 Daniel Dobbs Additional Webinars Credit Restoration …A 90 Day Guide to Higher Credit Scores Surviving the Mortgage Crisis …A 2009 Guide to Current Lending Criteria Attracting 1 st Time Buyers to Your Website Convert Your Website into a Lead Generator FHA Bailout Loans..The Coming Homeowner Bailout The Specifics of Reverse Mortgages…
1/19/2014Daniel Dobbs What it is a Reverse Mortgage Its an FHA loan enabling homeowners age 62 and over to tap into their homes equity. Max. LTV is based on age of youngest borrower. No income or credit check or repayment is req. until borrower permanently leaves the home. Borrower(s) also continues to live in the home while retaining title to the property. Receives tax-free income from the cash disbursements. Does not affect social security. Can pass homes remaining equity to heirs.
1/19/2014Daniel Dobbs What if my spouse, (co owner /dom. partner) is not 62? The younger co owner can be removed from the title using a quit claim deed. There are significant risks to consider i.e. what happens if the older spouse dies 1st. If one co owner permanently enters a nursing home. Can we participate? Yes, only 1 co borrower needs to occupy home. Please advise your borrowers to seek professional tax advice before application.
1/19/2014Daniel Dobbs Who should NOT get a reverse mortgage? The loans initial closing costs (which are always rolled into the loan) are quite substantial …but they are offset by a below market interest rate. So seniors who have only a short life expectancy (less than 2 years) will have to little time to offset the initial costs.
1/19/2014Daniel Dobbs Property Types 1- 4 units FHA-approved condos & manufactured homes that are attached to a permanent foundation.
1/19/2014Daniel Dobbs HighTechLending Loan Amounts The Maximum Claim (loan) Amount is currently set at $417,000 nationwide. To determine a monthly award the senior (s) is to receive… the loan officer simply inputs the homes appraised value & the age of the youngest co-owner into a processing program. There are many adjustable & fixed rate options. No pre pay penalties.
1/19/2014 Closing Costs Closing costs are fully financed into the loan balance. These fees include: Appraisal Title insurance, Escrow Costs Credit report Flood certification Mortgage Insurance Premium (1.5%) Max. Origination Fee is 1.5% plus up to a 1.5%YSP
1/19/2014Daniel Dobbs Types of Disbursement Plans Tenure: Borrower(s) receives a monthly check for as long as they live in the home. Line of Credit: Borrower(s) can draw up to maximum the amount & in any amounts of the Borrower(s) 's choosing. Lump Sum Cash Advance: A lump sum of cash can be distributed at closing. Modified Tenure:Any combo of the above
1/19/2014 Repayment The receipt of payments expires and loan becomes due when the borrower permanently leaves the home. What is permanent?. Death, or a medical condition req. permanent hospitalization (i.e. stroke, coma, total dementia). So when is the lender notified of the permanent condition? The heirs then have 12 months to sell or refinance the home.
1/19/2014Daniel Dobbs HighTechLending The 4 Step Process Education HUD Counseling… before submitting an application, borrower(s) must complete HUD Counseling with an independent HUD counselor. See Hud.gov for a list of Hud Counselors Application Closing.. 4 – 6 weeks to complete the entire process from start to finish.
1/19/2014 Items Needed at Application Original counseling certificate provided by third party reverse mortgage counselor (see #4). Photocopies of driver's license, social security card and birth certificate, if available. Copy of property tax statement & insurance bill. Original death certificate of spouse if deceased spouse has not been removed from title to home Copy of any trust agreement & Durable POA Names & account #s for any current mortgages
1/19/2014Daniel Dobbs HUD.gov
1/19/2014Daniel Dobbs In Closing If youd like to be on my mailing list.. please give a call or an Id like to know your thoughts of the webinar & any suggestions on how to make it better And thank you, I know your time is valuable this market is driving all of us to work harder and smarter…..and I hope this time we spent together was worthwhile. Thank you & good luck