Ways to Purchase a Home with a Reverse Mortgage

1. 1
Ways to Purchase
a Home with
a Reverse
Mortgage 2
5LifestyleHousingAmenities
DesiredbyMatureAdults
TipsforSellingHomesto
MatureAdults 3
RealEstateAgentsand
BuildersTogether
WhyRealEstateProfessionals
ShouldBlog
FEATURED IN THIS ISSUE
Ways to Purchase a Home with a Reverse Mortgage
Many mature adults would like to continue to live
independently and remain homeowners but their
current home may not be ideal. They may want to right-
size to an all-on-one-floor, maintenance-free home in a
community that offers a more carefree lifestyle. A Home
Equity Conversion Mortgage (HECM, reverse mortgage)
can help increase purchasing power and flexibility for
homeowners aged 62-plus years, which are looking to
purchase their next home.
The HECM for Purchase is a Federal Housing
Administration (FHA) insured home loan that enables
homeowners to use the equity from the sale of a
previous residence to buy their next primary home.
Home buyers only make one initial loan investment,
the down payment, towards the purchase of the home.
They may also eliminate monthly mortgage payments,
improve their monthly cash flow and preserve their
savings with a reverse mortgage loan. There are a few
different ways to use a reverse mortgage loan when
buying a home:
Pay all cash for the home, then
take out a reverse mortgage
The simplest way to purchase a home is to pay all cash.
It also gives home buyers the option of choosing a
pre-owned home or new construction. However, many
homeowners may need to liquidate other assets to get
the cash. A reverse mortgage loan can help them replace
some of those depleted assets by improving overall
monthly cash flow.
Buy the home with a conventional mortgage
and then pay it off with a reverse mortgage
Homeowners that cannot make all cash purchase for a
home typically need obtain a conventional mortgage.
However, if the mortgage amount is small enough it
may be paid off with a reverse mortgage loan. Thus,
homeowners can still eliminate their monthly mortgage
payments. However, to obtain a conventional mortgage,
the buyer would need to qualify and this may be difficult
to mature adults with insufficient income or poor credit.
Also, there would be settlement costs for both the
conventional and reverse mortgage loans.
Purchase the home and obtain
a reverse mortgage at the same time
With the HECM for Purchase (reverse mortgage loan),
buyers can purchase a home and take out a reverse
mortgage loan at the same time, incurring only one
set of settlement costs. Closing costs are similar to a
regular FHA insured mortgage and are financed into
the mortgage. Loan amounts vary and the amount a
buyer is required to bring to the home closing will vary
depending on the youngest borrower’s age and the
purchase price of the home. Qualifying for a HECM for
Purchase loan is typically easier than qualifying for than
a conventional mortgage.
Reverse mortgage loans are designed to easily allow
mature adult buyers to purchase a home that suits
their lifestyle. The home must be the buyer’s primary
residence or for new homes, the buyer must physically
occupy the home as a primary residence within 60 days
of the purchase.
Learn more about the eligible property types for a
reverse mortgage loan and how offering the financial
option to your clients may benefit you – Contact a
Reverse Mortgage Advisor today.
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Senior Housing Matters
Elise David, Reverse Mortgages
(760) 702-2352 Nmls#236833 California

2. 2
Tips for Selling Homes to Mature Adults
5 Lifestyle Housing Amenities Desired by Mature Adults
The most important amenities in a mature adult housing
community are not only the features/design of the
home but also access to fitness activities, multiple dining
options, updated technology, personal transportation,
and health services. Senior Housing News, mentions that
amenities are not only important to attract new residence
but also to keep them in the community.1
A recent Life Care Services (LCS) market research survey,
determined the most wanted lifestyle amenities in
mature adult housing are:1
Fitness
• 73 percent surveyed desired access to fitness center
and walking/bike paths
• 55 percent wanted an indoor pool
Multiple Dining Options
• Elegant and Casual Dinning
• Outdoor dining and To Go Options
Up-to-Date Technology
• High Speed Wi-Fi
• Electronic Health Records
Transportation
• Personal parking space
• Individual transportation to appointments
Health Services
• Dedicated nursing staff in community
• On-site health centers
Mature adult homes are not just property; they are
communities that support the lifestyle of an aging
individual. This type of living is certainly in demand. A
national study by Real Estate Consulting of California,
“found that five of the top-selling master-planned
communities in the nation were active adult projects.”2
If you are working with mature adult clients, aged 62-
plus years, be sure to check out the benefits of a reverse
mortgage loan. Your client may be able to increase
their purchasing power and make lower upfront cash
investment than a cash purchase for their next home.
Contact a Reverse Mortgage Advisor to learn more.
As the baby boomer generation continue to age, the
number of Americans aged 65-plus years is expected
to double between 2010 and 2040 (Over 40 Million
Americans age 65-plus years and growing).3 With such a
large pool of potential clients looking to make a choice for
their retirement home, it is important to determine how to
tap into this growing market. Here are a few tips from Life
Health Pro:4
Get Online
The 2014 Pew Research Center study found that more
than half (59 percent) of mature adults today are Internet
savvy. Don Chamberlin, CFEd, president and CEO of The
Chamberlin Group, found“that when marketing to seniors,
print ads are not as effective as a strong online presence.”4
Educate
Establish yourself as an expert in the real estate industry.
Provide education to the mature adult community through
seminars, podcasts, radio shows, 1-on-1 meetings, etc.
Being an educator will help you earn credibility and trust in
the marketplace.4
Be Available
Make yourself available when your client needs you most,
it is essential in making a sale. Keep them informed.
Be Patient
Many times, people get impatient when working with
mature adult clients. Remember that clients may be
hesitant to make a change and may need more time to
consider their options. Help guide them through the
process by providing helpful information but be careful
not to pressure the older clients.
MakeYour Business Senior-Friendly
Be sure to make your office accessible for mature adults
by providing features such as convenient parking
and handicap access. Tailor your marketing and
communication pieces to have larger font, which makes it
easier to read.
If you are working with clients, aged 62-plus years, be sure
to check out the benefits of a reverse mortgage loan.Your
client may be able to increase their purchasing power for
their next home. Contact a Reverse Mortgage Advisor to
learn more.

3. 3
Real Estate Agents and Builders Together
According to RIS Media, John Caulfield,“For the past
several years, builders have actively sought help from
Realtors® to find qualified buyers.”5 Two-thirds of new
homes sold last year (2013) were purchased by buyers
that were brought to home builders by real estate
agents.1 Home builders are willing to work with real
estate agents, as they see a benefit to the reassurance
a real estate agent can provide a client.
Rei Mesa, president and CEO of Berkshire Hathaway
Home Services Florida Realty, stated that“some builders
have even stepped up their bonus programs and
commissions for real estate agents.5 Real estate agents
often times can bring their marketing and sales expertise
to the table, helping the home builder sell more homes.
Why Real Estate Professionals Should Blog
Blogs can be a useful tool to attract readers who are
looking for someone to help them with their real estate
decisions. One good reason to blog is to demonstrate to
prospective clients that you are knowledgeable about
a product and gives you the opportunity to build trust.
However, blogs to take some time commitment to be
successful. You must make an effort to keep the blog
fresh with new relevant and useful information.
Wondering if maintaining a real estate blog is worth
your time investment? Sean Matyia, RIS Media, Leader
in Real estate Information, believes it is for the following
reasons:6
To position your brand as an industry leader
Educational articles can portray creditability and your
expertise. Be sure to take the time to research what your
target market needs to know and stay abreast of changes
in the marketplace – this will help you in your blog
writing.
To develop and maintain customer relationships
Blogging is another form of communication that helps
you stay in touch with past, current and potential clients.
Increase your website traffic and search engine rankings
Blogging can increase the number of indexed pages and
keyword usage on your website. This should allow web
search engines to rank your website higher in generated
search results, so your website shows up more often to
potential clients.
If you are in the mature adult real estate market, you
may think blogging won’t be valuable to your clients.
However, the 2012 Pew Research Center found that:6
• 59 percent of seniors go online
• Among mature adults with an annual household
income of $75,000 or more, 90 percent go online
• 71 percent of the mature adults go online every day or
almost every day.
Mature adults not only go online, they also read blogs.
Pew research, reported in 2010 that 20 to 29 percent of
mature adults aged 55 to 74 years, read blogs.7
Adding blogs to your website gives you something new
to keep offering to your potential clients – keep them
coming back for more. Also, added opportunities
to toss-in some more calls to action and generate
additional leads.

4. 1 5 Must-Haves for Repositioning a Senior Living Community (Senior Housing News, June 2014). http://seniorhousingnews.com/2014/06/10/5-must-haves-for-repositioning-a-senior-
living-community/
2 Active adult communities attract home buyers seeking lifestyle amenities (Chicago-Tribune, 2011 May).http://www.chicagotribune.com/special/primetime/chi-primetime-mar-
ket-051111,0,1645492.story
3 Chart of Population 65 and over by age: 2000 to 2050 http://www.aoa.gov/Aging_Statistics/future_growth/future_growth.aspx
4 5 ways to sell to seniors (Life Health Pro, June 2014). http://www.lifehealthpro.com/2014/06/13/5-ways-to-sell-to-seniors?t=life-sales-strategies&page=2
5 Why Blogging Is Important for Real Estate Professionals (RIS Media, June 2014) http://rismedia.com/2014-06-15/why-blogging-is-important-for-real-estate-professionals/
6 Older Adults and Technology Use (Pew research, April 2014) http://www.pewinternet.org/2014/04/03/older-adults-and-technology-use/
7 Generations Online 2010: Summary of Findings (Pew Research, Dec 2010) http://www.pewinternet.org/2010/12/16/generations-2010/
References
This material is not provided by, nor was it approved by the Department of Housing & Urban Development (HUD) or by the Federal Housing
Administration (FHA).
Elise David, Senior Loan Officer
Reverse Mortgages
NMLS #236833 California
760 702-2352
Reverseforcash@gmail.com
Ask Elise Get Answers to your Reverse Mortgage Questions