ENJOY your best YEARS. An Informational Guide for Purchasing a Home with a Reverse Mortgage

Transcription

1 (800) NMLS #2052 ENJOY your best YEARS An Informational Guide for Purchasing a Home with a Reverse Mortgage

2 1... WHAT S INSIDE WHAT IS A REVERSE MORTGAGE & HOW DOES IT WORK? HOW IS IT USED? REVERSE MORTGAGE PROCESS PROCESS DETAILS FREQUENTLY ASKED QUESTIONS WHY ONE REVERSE MORTGAGE? FAMILY OF COMPANIES Copyright 2017 One Reverse Mortgage, LLC. All Rights Reserved.

3 2... WHAT IS A REVERSE MORTGAGE & HOW DOES IT WORK? What is it? A reverse mortgage for purchase lets you purchase a new home and obtain a reverse mortgage within a single transaction. It is similar to a traditional mortgage in the following ways: You borrow money based on the appraisal value of the new home. You are the owner of your new home. You can sell the home or pay the loan off with no prepayment penalty. In addition, the reverse mortgage for purchase comes with a few unique features: You can make payments if you like; however, no monthly mortgage payments are required. But do not forget, like all homeownership, you are still responsible for paying property taxes, homeowners insurance and maintaining the home. The amount of funds available to you in the line of credit option may increase over time. You also have the ability to receive money as a lump sum or monthly payments. You have protection against declining home values because it is a non-recourse loan.* It is a government insured loan. Who is eligible? To be eligible, you must be a homeowner who is at least 62 years old. You must also have enough equity in your home to qualify, and you need to have a substantial down payment. This amount varies and is based on age and interest rate. The older you are the less you have to put down. How does a reverse for purchase work? A reverse for purchase works similar to a traditional mortgage with just a few differences. The amount you qualify for is based on the equity in your new home, your age, and current interest rates. You will be required to have a minimum of 40% as a down payment on the new home This percentage is determined, in part, by your age. The older you are, the less you have to put down. The loan comes due when the last borrower vacates the home or passes away. A Family Decision Whether you are interested purchasing a home or you are looking for information for a loved one, choosing to buy a home with a reverse mortgage is a big decision. We understand if you want to include others in your decision. At One Reverse Mortgage, we encourage loved ones to be involved. Our licensed specialists can include others in phone conversations with you. Everyone is able to learn together, ask questions, and understand the process. *Non-recourse means that if the loan is not paid when due, and the sale of the home does not cover the balance, then the lender has no recourse against the borrower or their heirs.

4 ... HOW IS IT USED? 3 way1 Move Closer to Family or Warmer Climates George and Linda are both 68 and currently living in Michigan. They recently retired and decided to move to Florida to enjoy the warmer weather and spend more time with their grandchildren who live there. They sold their home for $200,000 and purchased a new home for $300,000. They use part of the proceeds from the sale of their old home to make a down payment of $156,000 on the new home. They use a reverse mortgage to pay for the rest and save the remaining $44,000 from the sale of their old home to put towards their retirement.* PURCHASE your dream HOME way 2 Move Into a Home that Meets Physical Needs Ron and June are 73 and live in a two-story home. Ron suffers from severe arthritis in the knees that makes it difficult to climb the stairs each day, and June s bad back prevents her from maintaining the home that has become too big for them. They sell their home for $155,000 and decide to downsize to a newly constructed one-story home. Since the home is new, they are able to add walk in tubs, grab bars, and other safety features. They purchase the brandnew, customized home for $165,000, using $82,000 from the sale of their old home, and $83,000 from their reverse mortgage. They save the $73,000 remaining from the sale of their old home for any unexpected expenses.* *Sample hypothetical scenario for illustrative purposes only

5 4... REVERSE MORTGAGE PROCESS step Initial Consultation This first step will help you decide whether purchasing a home with a reverse mortgage is right for you. Your licensed specialist will educate you on the loan and your product options. During this step, you will: Call to talk about your situation, get your questions answered and determine if you qualify. If you haven t found your dream home yet, your specialist can answer your questions along the way and give you helpful tools to finding your new home. If and when you find your new home, you must obtain a purchase agreement before moving on to the next step. Attend an educational counseling session, with a HUD-approved counselor. This is required by HUD. step 1 2 step3 Application and Review During the application and review, you ll have the opportunity to learn more about reverse mortgages and how they can work with your finances. During this time, you will: Receive your application and review it with your licensed specialist. Undergo a financial review to ensure you can uphold the financial responsibilities of the loan. Have your home appraised by an independent FHA-approved appraiser. Have all of your application documents reviewed and finalized. Closing and Disbursement This may be everyone s favorite step - the closing of your loan and disbursement of your funds! For this step, you will: Sign the final documents and close your loan in the comfort of your home. Receive your funds after the three day rescission period. Pay for your new home with your down payment and reverse mortgage proceeds. Enjoy your new home without a monthly mortgage payment! Just remember, you are still responsible for paying property taxes, homeowners insurance and maintaining the home.

6 ... PROCESS DETAILS 5 Counseling Information During your counseling session, a HUD-approved, third-party counselor will review your financial situation and ensure you understand how the loan program works. Counseling sessions usually last about an hour and, in most states, can be done over the phone. You must complete counseling before you can apply for a reverse mortgage. Your counseling certificate lasts six months, so you may want to take this step after you ve found your new home. HUD-Approved Counselors Below are just a few of the HUD-approved national counselors. You can find these and others by visiting hud.gov. National Foundation for Credit Counseling (866) ClearPoint Financial Solutions (877) National Council on Aging (800) Greenpath (888) Money Management International (877) Neighborhood Reinvestment Corporation (888) Financial Assessment A financial assessment was put in place by HUD to ensure people are in the best position to meet the obligations that come with this loan. We will review your income, assets, and credit history (credit scores are still not a requirement). Based on this review, we may reserve a portion of loan amounts to pay your property taxes and homeowners insurance, similar to an escrow account. Purchase Agreement After you put an offer in on your new home and it is accepted, a purchase agreement is prepared by one of the realtors involved. It s important that you obtain a copy of your purchase agreement because you cannot apply for a reverse for purchase without one. Appraisal Information An appraisal determines the market value of your home. Since the amount of equity in your home (along with your age) determines how much money you qualify for, appraisals are a necessary part of closing your loan. To get an accurate market value, a licensed FHA appraiser in your area will perform an inspection in your home and compare prices of similar homes in your area.

7 6... FREQUENTLY ASKED QUESTIONS Q1 How much do I need for a down payment? A When you purchase a home using a reverse mortgage, the down payment amount is based on three things: the age of the youngest borrower or eligible non-borrowing spouse, the purchase price of the home, and the interest rate on your loan. The older you are, the lower the down payment will be on your new home. Q2 Will my children be left paying for the loan if I pass away? A Your heirs have a few options. They can sell the home to pay off the loan and keep any remaining money from the sale or they can keep the home. If they decide to keep the home, they need to pay the lesser of the loan balance or 95% of the appraised value of the home. Q3 Do I need a good credit score to buy a home with a reverse mortgage? A To qualify for a reverse for purchase, you need to be at least 62 and have enough money for a substantial downpayment. There is no credit score requirement to get a reverse for purchase. Throughout the loan process, we review your credit history to determine if there are additional requirements. Q4 What types of homes will not qualify for a reverse mortgage for purchase? A There are some properties that do not qualify for a reverse mortgage. Make sure to ask your specialist. Some of the properties that do not qualify are: Second homes Cooperatives Manufactured homes Properties with more than 50 acres Q5 Why are you checking my credit history? A A requirement for someone getting this loan is to go through a financial assessment. This process helps us determine if you are willing and able to manage your debt and meet your financial obligations such as paying property taxes, homeowners insurance, and home maintenance costs. The purpose of this requirement is to set you up to succeed with your loan. Q6 Can I purchase a newly constructed home with a reverse for purchase? A Yes, but remember, - the loan process cannot start until the home is 100% complete. You must also have a Certificate of Occupancy when you apply for a reverse for purchase. Q7 Will the lender own my home? A You still own your home.* Like any other mortgage, your name remains on the title. * Homeowner is still responsible for paying property taxes, homeowners insurance and maintaining the home.

8 ... WHY ONE REVERSE MORTGAGE? 7 Our Mission: At One Reverse Mortgage, our licensed specialists are here to answer questions and help with your decision. One of the great advantages of working with us is that your licensed specialist is with you throughout the entire process. We do this by living our core philosophies, such as: Every Client. Every Time. No Exceptions. No Excuses; Responding with a Sense of Urgency; and Always Do the Right Thing. One Reverse Mortgage Is one of the largest reverse mortgage companies in the nation.* Is a Quicken Loans company, which means we know the mortgage business. Is licensed in all 50 states (currently operating in 47). Has a team of close to 100 licensed mortgage specialists that are highly trained and experienced to build a mortgage solution for seniors. Can assist people 24 hours a day, 7 days a week. Provides the highest level of client service. Our 98% client satisfaction rating is proof.** Credentials We are approved by the Federal Housing Administration (FHA) and the Department of Housing and Urban Development (HUD). We have an A+ rating with the Better Business Bureau. We are a proud member of The National Reverse Mortgage Lenders Association (NRMLA). BBB Where You May Have Seen Us *U.S. Department of Housing and Urban Development Fiscal Year 2016 HECM Endorsement Reports (10/1/16), based on active lenders. **Satisfaction rating is based on reviews from

9 8... FAMILY OF COMPANIES Welcome to the Family! One Reverse Mortgage is one of the largest reverse mortgage lenders in the country.* We are also proud members of the larger Quicken Loans family of companies. We re thrilled to welcome you to the family, where you ll benefit by association! As a valued part of our family, you get more than just great home finance options we also provide you access to an array of products and services to support your retirement lifestyle. Quicken Loans makes it easy and fast to refinance or buy a home.** quickenloans.com The largest independent provider of title insurance, property valuations and settlement services in the nation. titlesource.com The preferred real estate partner of Quicken Loans and your go-to for the best real estate agents across the country. inhouserealty.com Pioneer of wireless home security and one of the fastest growing companies in the industry. protectamerica.com Provides a unique sense of security for older Americans, with a medical alarm. connectamerica.com Officially licensed in every major sport and entertainment property, Fathead offers life-size, high-def wall decals of your favorite athletes, entertainers and characters, along with custom graphics for your home or business. fathead.com *U.S. Department of Housing and Urban Development Fiscal Year 2016 HECM Endorsement Reports (10/1/16), based on active lenders. **Quicken Loans is an Equal Housing Lender. Licensed in all 50 states. NMLS #3030

10 (800) Eastgate Mall, Suite 320 San Diego, CA Woodward Ave Detroit, MI One Reverse Mortgage is a licensed mortgage lender. These advertisements and materials are not provided nor approved by the U.S. Department of Housing and Urban Development (HUD) or the Federal Housing Administration (FHA). The following states require disclosure of licensing information. (If your state is not listed, it doesn t require a specific license disclosure or we are not currently licensed in that state.) AZ: One Reverse Mortgage, LLC, North Pima, Suite 200, Scottsdale, AZ, Mortgage Banker License # ; AR: One Reverse Mortgage, LLC, 4445 Eastgate Mall, Ste 320, San Diego, CA, Mortgage Lender/Mortgage Broker License # 42785; CA: Licensed by the Department of Corporations under California Finance Lenders Law License # and Residential Mortgage Lending Act License # ; GA: Residential Mortgage Licensee (#23385) 4445 Eastgate Mall, Ste 320, San Diego, CA; IL: Residential Mortgage Licensee #MB Department of Financial and Professional Regulation, 122 S. Michigan Ave 19th Floor, Chicago, IL (312) , 4445 Eastgate Mall, Ste 320, San Diego, CA; ME: One Reverse Mortgage, LLC, Supervised Lender License #SLM10965; KS: Licensed Mortgage Company, One Reverse Mortgage, MC ; MA: One Reverse Mortgage, LLC, Mortgage Lender License #MC 2052; NV: One Reverse Mortgage, LLC 8275 South Eastern Avenue, Suite 200, Las Vegas, NV 89123, License #1984; NH: Licensed by the New Hampshire Banking Department #10940-MB; NJ: Licensed Mortgage Banker NJ Department of Banking, first (and/or second) mortgages only; NY: Licensed Mortgage Banker, N.Y.S Banking Department, License #107328; OH: One Reverse Mortgage, MB ; Oregon License #ML-3511; PA: Licensed by the Department of Banking License # 21860; RI: Rhode Island Licensed Lender; TX: One Reverse Mortgage, LLC 4445 Eastgate Mall, Ste 320, San Diego, CA; VA: One Reverse Mortgage, LLC., NMLS ID #2052 ( WA: Consumer Loan Company License CL Equal Housing Lender, One Reverse Mortgage Nationwide Mortgage Licensing System Number 2052 Copyright 2017 One Reverse Mortgage, LLC. All Rights Reserved.