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#149: Using a reverse mortgage to help realtors help seniors downsize


As a long time real estate professional, you’ve always prided yourself of finding solutions to serve your clients’ needs. This is a tough time, you’re finding, for seniors. Many of the folks whom you helped purchase homes years ago are now finding those homes much too big for their needs and not easily adaptable to their less active lifestyles. With home prices in and around Indianapolis having dramatically escalated over the intervening years, it’s been a challenge getting those clients to take action. Not wanting to take on mortgage payments, they’re reluctant to tap their investments to cover the costs of a new purchase.

As their trusted advisor, you might help clients tap into their “housing wealth” they’ve created, helping them apply for HECM-for-purchase reverse mortgage loans. While coordinating the timing between the sale and the purchase can be tricky, the plan can work best for where seniors are having their new home built and the departure from their old home can take place in close proximity to the move-in to the new.

Using reverse mortgage financing addresses both the common concerns you’ve mentioned: Your clients avoid the need to tap into their investment holdings to afford a higher-priced home, and also avoid any need to take on monthly mortgage payments. (The “silent” mortgage balance is not due until the borrowers either permanently depart the home or sell.)

An added benefit to you, the realtor, is that your seniors are the largest single buying demographic in the USA today and a focus on them can help kick start your business in these very competitive times.

Reverse mortgage financing can help you help senior clients (and you) to “buy up” while “sizing down”.