What Every Real Estate Agent Needs to Capture More Buyers

What Every Real Estate Agent Needs to Capture More Buyers

What Every Real Estate Agent Needs to Capture More Buyers & More Closings The Reverse Mortgage Purchase Financing Option

of new home buyers revealed they wouldn’t have purchased a new home without reverse mortgage purchase financing! 25% What real estate agents and builders should know:

Reverse mortgage purchase financing option opens more doors for would-be buyers.

Reverse mortgages are often under-utilized and misunderstood by would-be buyers. Yet they can be a good funding option for new home purchases for buyers ages 60* and older. In a recent survey, homebuyers told us how the reverse mortgage purchase financing option unlocked their buying potential 1 : Would you still have purchased your new home if you did not have the reverse mortgage purchase financing as an option?

32.0% 43.8% 24.3%

Yes, definitely Probably not

No, definitely not

How important was the reverse mortgage financing purchase option in your decision to purchase the specific home that you bought?

Very important 72.8% Somewhat important 23.1% Not important 4.7%

*Not applicable in all states; some states may impose a higher age requirement. Visit www.reversefunding.com/equity-elite for details. 1 Report for Reverse Mortgage for Purchase Customer Survey, 2021.

Homebuyers who used our reverse mortgage purchase financing option also spent more.

How much more expensive of a home did you purchase above what you initially planned thanks to the reverse mortgage purchase financing option?

$25,000 more $50,000 more $75,000 more Over $100k more

16.8% 27.1% 16.8% 39.3%

How much more in upgrades did you add to your new home? $10,000 more 26.4% $20,000 more 25.5% $30,000 more 24.5% $40,000 more 23.6%

Despite these overwhelmingly positive results, many buyers don’t realize that a reverse mortgage is even a financing option for new purchases.

And those who did learn about reverse mortgages heard about it primarily from friends, family or a builder—not their lender.

Did the builder or real estate agent that you purchased your home through recommend the reverse mortgage purchase financing option? Yes 34.3% No 60.4% I’m not sure 5.3%

How did you initially learn about the reverse mortgage purchase financing option?

Friend or family

23.7% 20.7% 31.4% 12.4% 11.8%

Builder Other

News article

Financial advisor

MORE INSIGHTS

Did the reverse mortgage purchase financing option allow you to buy a more expensive home or property in a more desirable location than you originally planned?

Make it easier for people age 60 + and older to buy the home they desire Our reverse mortgage purchase financing option is specifically designed to help your clients buy the home they want—with fewer financial worries and limitations. The advantages of reverse mortgage purchase financing are clear for buyers: g  Buyers can get additional spending power. Buyers utilizing reverse mortgages spent more and closed more quickly on their loans than with traditional forward loans. g Buyers enjoy a flexible payment feature. Monthly principal and interest payments are optional, making it easier to manage cash flow.* g Buyers can make a purchase without necessarily jeopardizing their nest egg for retirement. Most buyers can keep more of their cash than they can with a conventional mortgage or all-cash purchase, leaving their nest egg for retirement intact.

Yes 63.3% No 36.7%

Did the reverse mortgage purchase financing option help you feel more comfortable with your financial planning goals for retirement? Yes, much more comfortable 75.7% Somewhat more comfortable 19.5% No, it had no impact 4.7%

+ Not applicable in all states; some states may impose a higher age requirement. Visit www.reversefunding.com/equity-elite for details. * As with any mortgage, buyer must meet their loan obligations, keeping current with property taxes, insurance, and maintenance.

Grow your business and close more sales by recommending the reverse mortgage purchase financing option. Real estate agents and builders also realize a host of benefits from telling would-be buyers about the reverse mortgage purchase financing option, including: g  It can help you attract and capture a brand new—and rapidly growing—market of home buyers. Did you know that 25% of today’s homebuyers are age 60+, according to a recent study by the National Association of Realtors ® ? 1 g  More shoppers can become buyers—leading to more customers for you. Our study revealed that 25% of buyers over 60* wouldn’t have purchased a new home without the ability to finance through a reverse mortgage. g  Expands your buyers’ options. A reverse mortgage gives buyers more purchasing power, allowing real estate agents and builders to show homes their customers think they may not otherwise be able to afford. g Untapped opportunity for lenders. Few loan officers understand how to position and sell reverse mortgages for purchase, leaving the market wide open with less competition. Set yourself—and your services—apart by demonstrating knowledge about a wider array of financing options. g  Borrowers have assets to qualify. They also usually have fewer credit issues and typically pass the residual income test. g  Loans close quickly! Properties almost always appraise for at least the purchase price and transactions have a scheduled closing date. 1 National Association of Realtors, 2017 Homebuyer & Seller Generational Trends Research * Not applicable in all states; some states may impose a higher age requirement. Visit www.reversefunding.com/equity-elite for details.

MORE INSIGHTS

How were you planning to purchase your new home before learning about the reverse mortgage purchase financing option? All cash 15.4% Traditional forward mortgage 17.8% Cash + a traditional mortgage 66.9%

Identifying an ideal candidate for the reverse mortgage purchase financing option g  The borrower must be age 60 + or older and be able to make a one-time investment of approximately 45% to 62%. 1 g  The home they are purchasing must be their primary residence. Eligible properties include single-family homes, FHA- or RMF-approved condominiums, townhouses or Planned Unit Developments (PUDs), and manufactured homes meeting HUD guidelines. * g  Monthly principal and interest payments are optional. However, the customer is still responsible for property-related expenses as part of their loan obligations. These include taxes, insurance, and maintaining the property in good condition. We will conduct a financial assessment to ensure that each prospective borrower has the willingness and ability to meet their loan obligations. g  The down payment must come from an allowable source, such as the sale of a home, gift from a family member, or other assets (not from another loan; certain restrictions apply.) g  Buyers must participate in mandatory loan counseling by an independent, FHA- approved counselor to ensure they understand the process, program details, and individual terms of the loan.

“This program has worked perfectly for us. We used income from the sale of our previous house to upgrade to a wonderful home on a lake in a beautiful development. We could never have had a home like this without a reverse mortgage.” -RMF Survey Respondent

+ Not applicable in all states; some states may impose a higher age requirement. Visit www.reversefunding.com/equity-elite for details. 1 This example is for illustrative purposes only. Actual cash required may vary and is based on age of youngest borrower, interest rate, home value and other factors. Please contact Reverse Mortgage Funding LLC (RMF) for details about credit costs and terms. * This material has not been reviewed, approved or issued by HUD, FHA or any government agency. The company is not affiliated with or acting on behalf of or at the direction of HUD/FHA or any other government agency.

Add reverse mortgage purchase financing to your list of funding options—and watch the opportunities grow. Ready to get started? For more information about our reverse mortgage purchase financing option, call: 877-820-5314 “Our RMF agent was extremely helpful in explaining the entire process to us and putting our minds at ease. They gave us the comfort to proceed by answering all of our questions thoroughly and in a timely manner. This program allowed us to purchase our dream home in the best location.” -RMF Survey Respondent

For more information, Call: 877-820-5314 Visit: reversefunding.com

NOT FOR CONSUMER USE This material has not been reviewed, approved or issued by HUD, FHA or any government agency. The company is not affiliated with or acting on behalf of or at the direction of HUD/FHA or any other government agency. Equity Elite Reverse Mortgage (“Equity Elite”) is Reverse Mortgage Funding LLC’s proprietary loan program, and it is not affiliated with the Home Equity Conversion Mortgage (HECM) loan program, which is insured by FHA. Equity Elite is available to qualified borrowers who also may be eligible for HUD, FHA’s HECM program or are seeking loan proceeds that are higher than HUD, FHA’s HECM program limit. Equity Elite currently is available only for eligible properties in select states. Please contact your loan originator to see if it is currently available in your state. Upon a maturity event, any non-borrowing individuals with an ownership interest in the property, including non-borrowing spouses, will have a short period of time (for example, 30 days from a due and payable letter or an alternate time specified by the loan servicer if extensions are available under the circumstances) to purchase the property from the estate or, if the non-borrower inherits the property, pay the loan in full using any sources of funds available to them. Any non-borrowing individual, including a non-borrowing spouse, should have a plan to pay off an Equity Elite reverse mortgage upon the borrower’s death or any other maturity event. If the non-borrower is unwilling or unable to purchase the property or pay the loan in full, there is no protection for the non-borrower (including a non-borrower spouse) to maintain an interest in the home or to continue residing in the home past the maturity event and the non-borrower may be evicted upon foreclosure. The FHA HECM program has protections in place for certain non-borrowing parties, so a reverse mortgage applicant with certain non-borrowing parties should strongly consider a FHA-insured HECM loan (see HECM guidelines or ask an RMF representative for details). Under the Equity Elite reverse mortgage loan program, a maturity and/or default event occurs when the last surviving borrower no longer lives in the home as his or her primary residence for at least 12 months, the property charges (including taxes, insurance, or any other property charges) are not paid, required repairs are not completed or the property is not maintained, or any other maturity and/or default event, as specified in the Security Instrument, occurs. ©2021 Reverse Mortgage Funding LLC, 1455 Broad Street, 2nd Floor, Bloomfield, NJ 07003, 1-888-494-0882. Company NMLS ID: #1019941. For licensing information, go to: www. nmlsconsumeraccess.org. Arizona Mortgage Banker License #0927682; Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act; Loans made or arranged pursuant to a California Financing Law license; Georgia Mortgage Lender Licensee #36793; Massachusetts Mortgage Lender License #ML1019941; Licensed by the New Jersey Department of Banking & Insurance; Licensed Mortgage Banker-NYS Department of Financial Services -in-state branch address 700 Corporate Blvd, Newburgh, NY 12550; Rhode Island Licensed Lender. For California consumers: For information about our privacy practices, please visit https://www.reversefunding.com/privacy. Not all products and options are available in all states. Terms subject to change without notice. Certain conditions and fees apply. This is not a loan commitment. All loans subject to approval. L3806-Exp052022