1. A reverse mortgage could be a valuable option during retirement
HECM for Purchase
A reverse mortgage could be a valuable option during retirement
Reverse Mortgage USA is a division of Success Mortgage Partners, Inc. NMLS # is a HUD Approved Mortgagee, FHA ID# , Equal Housing Lender. Licenses: MI #FL-4128, IN #19238, SC #MLS , TX #130562, FL #ML , GA GRMA#36474, NC #RM-135, IL #MB All information is subject to change without notice. Not for distribution to consumers. This presentation is not from HUD or FHA and this document was not approved by the department or any government agency.

2. What is a HECM?
A reverse mortgage is a unique FHA-Insured loan that enables older homeowners (62+) to convert part of the equity in their home into cash without having to sell the home, give up title or ownership, or take on a new monthly mortgage payment
Reverse Mortgage USA is a division of Success Mortgage Partners, Inc. NMLS # is a HUD Approved Mortgagee, FHA ID# , Equal Housing Lender. Licenses: MI #FL-4128, IN #19238, SC #MLS , TX #130562, FL #ML , GA GRMA#36474, NC #RM-135, IL #MB All information is subject to change without notice. Not for distribution to consumers. This presentation is not from HUD or FHA and this document was not approved by the department or any government agency.

3. Retirement Income Sources Home
Why is This Product Important?
Demographics
Longevity
Retirement Income Sources
Home
Reverse Mortgage USA is a division of Success Mortgage Partners, Inc. NMLS # is a HUD Approved Mortgagee, FHA ID# , Equal Housing Lender. Licenses: MI #FL-4128, IN #19238, SC #MLS , TX #130562, FL #ML , GA GRMA#36474, NC #RM-135, IL #MB All information is subject to change without notice. Not for distribution to consumers. This presentation is not from HUD or FHA and this document was not approved by the department or any government agency.

4. Baby Boomers! Demographics
10,000 people will turn age 65 every day for the next 15 years in this country.
- Pew Research
“Millennials and Boomers will dominate the market for the next 10 years”
- Realtor.com® 2017 National Housing Forecast
Reverse Mortgage USA is a division of Success Mortgage Partners, Inc. NMLS # is a HUD Approved Mortgagee, FHA ID# , Equal Housing Lender. Licenses: MI #FL-4128, IN #19238, SC #MLS , TX #130562, FL #ML , GA GRMA#36474, NC #RM-135, IL #MB All information is subject to change without notice. Not for distribution to consumers. This presentation is not from HUD or FHA and this document was not approved by the department or any government agency.

5. Longevity
Longevity will affect healthcare, housing, retirement, job creation, traffic, entertainment and every other aspect of our society. 
Reverse Mortgage USA is a division of Success Mortgage Partners, Inc. NMLS # is a HUD Approved Mortgagee, FHA ID# , Equal Housing Lender. Licenses: MI #FL-4128, IN #19238, SC #MLS , TX #130562, FL #ML , GA GRMA#36474, NC #RM-135, IL #MB All information is subject to change without notice. Not for distribution to consumers. This presentation is not from HUD or FHA and this document was not approved by the department or any government agency.

6. Retirement Income Sources
Reverse Mortgage USA is a division of Success Mortgage Partners, Inc. NMLS # is a HUD Approved Mortgagee, FHA ID# , Equal Housing Lender. Licenses: MI #FL-4128, IN #19238, SC #MLS , TX #130562, FL #ML , GA GRMA#36474, NC #RM-135, IL #MB All information is subject to change without notice. Not for distribution to consumers. This presentation is not from HUD or FHA and this document was not approved by the department or any government agency.

7. 1. Downsizing or Rightsizing 2. Upsizing to that Dream Retirement Home
3. Aging in Place
Last year alone 4.2 Million people at retirement age moved into a NEW HOME and 30% of them actually “UPSIZED” into a larger retirement home.
Age Wave Calculations based on US Census Data
Nearly 90 percent of seniors want to stay in their own homes as they age, often referred to as “aging in place.”
- AARP AARP
Reverse Mortgage USA is a division of Success Mortgage Partners, Inc. NMLS # is a HUD Approved Mortgagee, FHA ID# , Equal Housing Lender. Licenses: MI #FL-4128, IN #19238, SC #MLS , TX #130562, FL #ML , GA GRMA#36474, NC #RM-135, IL #MB All information is subject to change without notice. Not for distribution to consumers. This presentation is not from HUD or FHA and this document was not approved by the department or any government agency.

8. HECM for purchase Also referred to as: Reverse For Purchase or H4P
Allows older adults 62 years or older to buy a home with HECM (Reverse Mortgage) loan proceeds
Preserve much needed CASH Assets for other retirement needs
Relocate to be closer to family
Purchase a single level, more accessible home
Rightsizing for more affordable living, less maintenance/upkeep
Reverse Mortgage USA is a division of Success Mortgage Partners, Inc. NMLS # is a HUD Approved Mortgagee, FHA ID# , Equal Housing Lender. Licenses: MI #FL-4128, IN #19238, SC #MLS , TX #130562, FL #ML , GA GRMA#36474, NC #RM-135, IL #MB All information is subject to change without notice. Not for distribution to consumers. This presentation is not from HUD or FHA and this document was not approved by the department or any government agency.

9. Consumer Protections
Reverse mortgages are non-recourse loans – meaning the borrower (or his or her estate) will never owe more than the loan balance or the value of the property, whichever is less; and no assets other than the home can be used to repay the debt. The maximum amount owed is the lesser of the value of the home at the time of sale or the balance of the mortgage.
Reverse mortgages have no time limit on how long borrowers can stay in their homes. Homeowners still own the property, so they can remain in the home for life, provided they continue to occupy and maintain their home in good condition, pay insurance and property taxes.
Borrowers are required to counsel with independent, third party counselors approved by the U.S. Department of Housing and Urban Development (HUD) in their local communities.
Reverse Mortgage USA is a division of Success Mortgage Partners, Inc. NMLS # is a HUD Approved Mortgagee, FHA ID# , Equal Housing Lender. Licenses: MI #FL-4128, IN #19238, SC #MLS , TX #130562, FL #ML , GA GRMA#36474, NC #RM-135, IL #MB All information is subject to change without notice. Not for distribution to consumers. This presentation is not from HUD or FHA and this document was not approved by the department or any government agency.

10. Eligibility Age 62 years or older
Must have enough net proceeds from sale of previous home or considerable liquid assets to bring to closing
No Borrowed Funds
Can Choose to Retain Current Home if they Qualify
Home must be primary residence
Home meets minimum FHA property standards
Occupy property within 60 days
Mandatory Counseling Session
Reverse Mortgage USA is a division of Success Mortgage Partners, Inc. NMLS # is a HUD Approved Mortgagee, FHA ID# , Equal Housing Lender. Licenses: MI #FL-4128, IN #19238, SC #MLS , TX #130562, FL #ML , GA GRMA#36474, NC #RM-135, IL #MB All information is subject to change without notice. Not for distribution to consumers. This presentation is not from HUD or FHA and this document was not approved by the department or any government agency.

11. Property types Eligible Properties Ineligible Properties
Single family homes
2-4 Unit properties
Townhomes
FHA/HUD approved condominiums
Newly constructed properties must have Certificate of Occupancy (C.O. -must have been issued prior to application date))
Ineligible Properties
Cooperative Units
Bed & breakfast properties, boarding houses
1st Financial Reverse Mortgages a division of Success Mortgage Partners, Inc. NMLS # is a HUD Approved Mortgagee, FHA ID# , Equal Housing Lender. Licenses: MI #FL-4128, IN #19238, SC #MLS , TX #130562, FL #ML , GA GRMA#36474, NC #RM-135, IL #MB All information is subject to change without notice. Not for distribution to consumers. This presentation is not from HUD or FHA and this document was not approved by the department or any government agency.

12. How Much Does My Client Qualify For?
3 Factors: Age, Maximum Claim Amount, Interest Rate
Age: Older you are the more LTV
MCA: Maximum Claim Amount, lesser of:
Final appraised value (as determined by UW);
Sales Price; or
FHA HECM mortgage limit (currently set at $636,150)
Interest: Fixed Rates % Adjustable %
Reverse Mortgage USA is a division of Success Mortgage Partners, Inc. NMLS # is a HUD Approved Mortgagee, FHA ID# , Equal Housing Lender. Licenses: MI #FL-4128, IN #19238, SC #MLS , TX #130562, FL #ML , GA GRMA#36474, NC #RM-135, IL #MB All information is subject to change without notice. Not for distribution to consumers. This presentation is not from HUD or FHA and this document was not approved by the department or any government agency.

13. How Much Does My Client Qualify For?
Age 62 – roughly 50% Reverse Mortgage Proceeds, 50% CASH
Age 85 – roughly 65% Reverse Mortgage Proceeds, 35% CASH
Reverse Mortgage USA is a division of Success Mortgage Partners, Inc. NMLS # is a HUD Approved Mortgagee, FHA ID# , Equal Housing Lender. Licenses: MI #FL-4128, IN #19238, SC #MLS , TX #130562, FL #ML , GA GRMA#36474, NC #RM-135, IL #MB All information is subject to change without notice. Not for distribution to consumers. This presentation is not from HUD or FHA and this document was not approved by the department or any government agency.

14. What if the Home Needs Repairs? Required Repairs
Health, safety or structural integrity issues
Must be completed prior to closing by seller
Include in purchase agreement as addendum
Buyer cannot put any money into repairs before they own the home
Reverse Mortgage USA is a division of Success Mortgage Partners, Inc. NMLS # is a HUD Approved Mortgagee, FHA ID# , Equal Housing Lender. Licenses: MI #FL-4128, IN #19238, SC #MLS , TX #130562, FL #ML , GA GRMA#36474, NC #RM-135, IL #MB All information is subject to change without notice. Not for distribution to consumers. This presentation is not from HUD or FHA and this document was not approved by the department or any government agency.

15. Writing an offer:
Contracts should be written with 45 days to closing (w/ extension)
Be sure to put FHA “Reverse” as type of financing
Must have Fully Executed “Certified True Copy” or Original Contract
FHA Amendatory Clause must be in contract
Seller cannot pay closing cost – even if customary for the market
Seller must pay for ALL Repairs prior to closing
All repairs must be on the repair addendum and re-inspection required
For NEW CONSTRUCTION – Must have a Certificate of Occupancy
Reverse Mortgage USA is a division of Success Mortgage Partners, Inc. NMLS # is a HUD Approved Mortgagee, FHA ID# , Equal Housing Lender. Licenses: MI #FL-4128, IN #19238, SC #MLS , TX #130562, FL #ML , GA GRMA#36474, NC #RM-135, IL #MB All information is subject to change without notice. Not for distribution to consumers. This presentation is not from HUD or FHA and this document was not approved by the department or any government agency.

16. The Opportunity
As a Realtor, what is the opportunity for more sales and growing your business?
10,000 Baby Boomers turn 62 every day!!
Access to new market
Market is virtually un-tapped, you have little competition
Sell more homes at higher prices – more purchasing power!
List the homes they are selling
Move current listing faster by lower listing price
Create sales where they normally would not be possible with a traditional loan due to inability to qualify for payments
Reverse Mortgage USA is a division of Success Mortgage Partners, Inc. NMLS # is a HUD Approved Mortgagee, FHA ID# , Equal Housing Lender. Licenses: MI #FL-4128, IN #19238, SC #MLS , TX #130562, FL #ML , GA GRMA#36474, NC #RM-135, IL #MB All information is subject to change without notice. Not for distribution to consumers. This presentation is not from HUD or FHA and this document was not approved by the department or any government agency.

17. $150K need from Funds from Sale
Rightsizing
CURRENT HOME
Net Gain from Sale = $400K,000
NEW HOME
$300K Purchase Price
$150K from HECM
$150K need from Funds from Sale
($250K Cash Remaining)
**Based on age 62**
Reverse Mortgage USA is a division of Success Mortgage Partners, Inc. NMLS # is a HUD Approved Mortgagee, FHA ID# , Equal Housing Lender. Licenses: MI #FL-4128, IN #19238, SC #MLS , TX #130562, FL #ML , GA GRMA#36474, NC #RM-135, IL #MB All information is subject to change without notice. Not for distribution to consumers. This presentation is not from HUD or FHA and this document was not approved by the department or any government agency.

18. $150K need from Funds from Sale
Upsizing
CURRENT HOME
Net Gain from Sale = $200K,000
NEW HOME
$300K Purchase Price
$150K from HECM
$150K need from Funds from Sale
($50K Cash Remaining)
**Based on age 62**
Reverse Mortgage USA is a division of Success Mortgage Partners, Inc. NMLS # is a HUD Approved Mortgagee, FHA ID# , Equal Housing Lender. Licenses: MI #FL-4128, IN #19238, SC #MLS , TX #130562, FL #ML , GA GRMA#36474, NC #RM-135, IL #MB All information is subject to change without notice. Not for distribution to consumers. This presentation is not from HUD or FHA and this document was not approved by the department or any government agency.

19. THANK YOU! David R. Heilman, NMLS# 207439
Certified Reverse Mortgage Professional®
Cell:
NMLS#130562