Fairway Reverse – Hoe Builder Series – Reverse Mortgage Loan Myths and Misunderstandings – FESCH.TV

FESCH.TV INFORMIERT:

Let’s talk about some of common myths that exist around reverse mortgage loans – as a builder or developer, you have probably heard a wide range of information.
Let’s start with the costs – a common concern. The truth is, that while a reverse mortgage may be more expensive than a traditional mortgage, they also may provide more options than a traditional mortgage, such as no mortgage payments and a growth credit line with a growth option with the unused funds. The borrower must still pay taxes, insurance, and maintain the home. And the biggest expense is often the mortgage insurance premium, but that is the non-recourse feature that makes sure your client will never be responsible for more than their home is worth.
Which brings up another common misperception – that a borrower’s home will be taken by the lender when they pass away and that heirs automatically lose the rights to the property. This is also not true – the house is in your buyer’s name, and they or their heirs make the decision to sell or pay off the mortgage balance. If the mortgage balance is too high, the payoff is limited to the value of the house, and the remaining amount is paid by the FHA mortgage insurance fund. That’s why they pay those mortgage insurance premiums.
As long as all loan terms are met – taxes and insurance are paid, and the home is maintained – the borrower will own the home and remain on title. The deed always stays in their name and they retain all the rights that they do now.
You may have heard that reverse mortgages are difficult or slow to close – not with the Reverse Mortgage Planning Pros at Fairway. In most states, in many circumstances, Fairway can close a HECM for Purchase in as little as 17 days. This, coupled with increased buying power, can give your home seekers, and realtor estate partners, a huge advantage and peace of mind. We will provide the consistency you need to sell your inventory in a timely fashion.