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Senior Housing Wealth Exceeds Record $9.57 Trillion

October 28, 2021
 
 
Homeowners 62 and older saw their housing wealth grow by 3.7 percent or $339 billion in the second quarter to a record $9.57 trillion from Q1 2021, according to the latest quarterly release of the NRMLA/RiskSpan Reverse Mortgage Market Index.
 
"As the holidays approach, it's the perfect time for families to gather and take stock of their retirement resources and make necessary adjustments to ensure continued financial security," said Steve Irwin, President of NRMLA. "Housing wealth should be considered with other financial assets when developing a comprehensive retirement plan."
 
 
Watch the video to learn how your clients can benefit from a HECM for Purchase.
 
What Is a Reverse Mortgage?
 
As a senior, your most significant asset may be your home. If money is tight in retirement, you may be interested in getting a reverse mortgage. Here, we'll discuss everything you need to know about reverse mortgages so you can make the best decision.
 
Step One
 
Who qualifies for a reverse mortgage?
 
There are specific criteria you'll need to meet to qualify for a reverse mortgage, according to Steve Irwin, President of the National Reverse Mortgage Lenders Association (NRMLA):
 
·       Age qualification: All borrowers listed on the title must be 62 years old. If one spouse is under 62, it might be possible to get a reverse mortgage. However, the loan officer will need to collect additional information upfront to determine eligibility.
·       Primary lien: A reverse mortgage must be the primary lien on the home. Any existing mortgage must be paid off using the proceeds from the reverse mortgage.
·       Occupancy requirements: The property used as collateral for the reverse mortgage must be the primary residence. Vacation homes and investor properties do not qualify.
·       Taxes and Insurance: Borrowers must remain current on property taxes, homeowners' insurance, homeowners' association fees, and any other necessary costs related to owning your property.
·       Property Condition: Borrowers are responsible for completing mandatory repairs and maintaining the condition of the property.
·       Property type: Eligible property types include single-family homes, 2–4-unit properties, condominiums, and townhouses. Co-ops do not qualify.
·       Debt: Borrowers must not have any outstanding federal debt you're delinquent on, like an unpaid tax bill.
·       Counseling: Borrowers must take part in a reverse mortgage counseling session, so you understand what you're signing up for HECM Mortgage.
 
Step Two 
 
To learn more and discuss your options – schedule a call or meeting with Mike Bowers.
 
 
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