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Leverage Housing Wealth To Maximize
Your Clients’ Retirement

Long overlooked by financial advisers, housing wealth provides key benefits, which could enhance your clients’ retirement portfolio by using all of their assets instead of just some.  Strategic usage of home equity by way of a reverse mortgage can protect, prolong and improve your clients’ financial picture and secure their nest egg.

Today’s Baby Boomers typically don’t have pensions and a large part of their net worth lies in their home equity. In fact, untapped home equity levels have reached a whopping $7.54 trillion for homeowners 60+.*

Educating your clients on how to strategically and tax efficiently incorporate this home equity into their retirement plan may be the key to funding their longevity and making their money last throughout their lifetime.

*NRMLA/RiskSpan Reverse Mortgage Market Index, June 2020

Key Benefits of Reverse Mortgages

Reverse mortgages may help your clients limit portfolio distributions, helping you to manage more of their money longer. Loan proceeds can be used in a variety of strategic ways to supplement other income sources, and even delay drawing from Social Security or portfolios during down markets which can have devastating effects. 

Higher-Valued Home Options

Borrowers with higher-valued homes have even more of their net worth tied up in their home equity, and are representing a growing portion of homeowners taking out reverse mortgages. 

Jumbo reverse mortgages – also known as proprietary or portfolio reverse mortgages – offer several key advantages for homeowners 60+ with higher home values over the traditional HECM products.

My team recently has seen a surge of interest from business executives and CEOs in jumbo reverse mortgages. Many of these clients have been referred to us by financial advisers seeking to establish a buffer asset against market volatility for their clients.

Proprietary Reverse Mortgage Advantages

*Borrower(s) responsible for property taxes, home owners insurance and home maintenance. Proprietary loan options available in select states only.

Request An Analysis For Your Client

Increase Purchasing Power for Buyers 60+

Realtors®, if you want to sell more homes to the growing 62+ demographic, it’s time to consider the Home Equity Conversion Mortgage or (HECM) for Purchase.

This home loan is uniquely designed to meet the cash flow needs of older buyers.

Buyers on a limited or fixed income may have an easier time qualifying for a HECM for Purchase than they would a traditional mortgage, because credit requirements are not score driven and income requirements are far less restrictive.

Whether your clients want to upsize to the home of their dreams, downsize – or right size to a home more suited to meet their long-term needs, a HECM for purchase may be a better option, versus paying cash or taking out a 15-, 20- or even a 30-year mortgage at this stage in life.

Think about it. Does it make sense for buyers in their 60s and beyond to be making mortgage payments for the rest of their life? Hardly!

How It Works

Simply put, a HECM for Purchase loan combines a reverse mortgage with the equity from the sale of their previous home – or from other savings and assets – to buy their next primary home in one single transaction.

Regardless of how long they live in the home or what happens to the home’s value, they only make one down payment of roughly 50 percent towards the purchase, provided that they pay property taxes, homeowner’s insurance, and maintain the property.

Once the purchase is complete, they can make payments on the home or defer payback until the last remaining borrower leaves the home. There is no mandatory mortgage payment, making this option a great way to preserve cash flow later in life.

Higher-Valued Home Options

Jumbo reverse mortgages – also known as proprietary reverse mortgages offer several advantages for buyers 60+ seeking to purchase higher home values.

The biggest advantage is larger lending limits. While traditional reverse mortgages limit buyers to $822,375 as of 2020, jumbo reverse mortgages allow for loan amounts up to $3 million for homes valued up to $10 million.

More Proprietary Reverse Mortgage Advantages

*Borrower(s) responsible for property taxes, home owners insurance and home maintenance. Proprietary loan options available in select states only.

Contact A Licensed Reverse For Purchase
Specialist Today

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