Greetings!
Has anyone figured out a good way to move properties profitably in our current market here in Michigan?
There are a lot of opinions out there, but are they actually working? And who’s really benefiting in the long run, the investor or the homeowner?
How about a program that actually benefits both parties?
If you're a senior citizen over the age of 62 and you live in the Tri-County area, you can now get into a new home with zero out-of-pocket expense and zero house payments for as long as you're living in the house.
This program works anywhere nationwide but for the benefit of this article we're concentrating on the Tri-County area.
The program is a federally-insured mortgage loan backed by the government called a Home Equity Conversion Mortgage, or HECM for short. It is the ONLY reverse mortgage insured by the federal government and the FHA, which is part of HUD.
Who is eligible for this program you ask?
Anyone 62 years old or older is elibible. The house must be the individual's primary residence, it must meet HUD's minimum property standards and all they have to do is discuss the HECM loan program with a HUD approved counselor. That's it!
Do you think there is an opportunity here? Absolutely.
This is a fantastic way to get seniors into a house with no out of pocket expense and no house payments for as long as they reside in the house.
What are the benefits to the 62 and up homeowner?
Let me give you a simple example: We purchase a property at a steep discount on the NW side of town in a nice area. The ARV is $100k. We rehab the property. One of our clients, Joe Homeowner, aged 63, was introduced to the program and instantly became interested. He just happens to want to live on the NW side of town next to his grand-kids. We show him the property and he wants it. Our selling price is $65k.
That's $35k in built-in equity right off the bat for those of you keeping score at home.
HUD has already approved the property as meeting their minimum standards so that's no problem.
All Joe Homeowner has to do is discuss the program options with a HUD counselor and he's approved. No down payment, no out-of-pocket expenses, and no house payments for as long as it remains his principal residence.
He has $35k he now has access to anytime he wants, for anything he wants, as a 1) single lump sum. 2) for cash withdrawls set up as a "creditline" or 3) as a monthly cash advance for a specific period of time. Or any combination of the three cash advances.
And he never has to pay it back as long as he continues to live in the house!
That $35k will come in very handy in his golden years. Of course, he can only get as much as the house is appraised for.
But if property values go up eventually, so will his loan advances.
If the property appraises for $110k 2 years later, his $35k equity just turned into $45k that he can tap into whenever he needs to at whatever amount suits him.
No loan payments, no house payments. Ever.
The only stipulation to all this, and that's part of your HUD counselor discussion, is Joe Homeowner pays only the taxes and insurance on the property every year – that's it!
The counselors will make sure Mr. Joe Homeowner is able to afford the property taxes and insurance long before he closes on the house of his dreams. If that isn't going to be a problem, he's golden.
Obviously HUD and the government don't want to place people in homes they can't afford the taxes and insurance on; then nobody wins.
Are there any disadvantages to a reverse mortgage? Sure, there are pros and cons to every situation. We'll touch on those in the next email.
But in this real estate market right here right now in Michigan, this program is hands down a winner for seniors over 62 and for investors sitting on empty properties they can't move, now they have a great option.
If you have senior clients over 62 that you weren't sure what to do with before, now you know you can with a HECM reverse mortgage.
If you're a senior reading this article and are in the Tri-County area of Detroit, send us an email or give us a call and we'll be more than happy to walk you through the steps of the process.
You're under no obligation, but we can educate you on how a reverse mortgage can work to your advantage so your dream of owning your own home can become a reality no matter what your income is or how poor your credit currently is.
We can help you! Contact me below and I'll be more than happy to assist you with any questions or concerns you might have regarding a reverse mortgage.
In my next article I'll discuss the basic loan features of a reverse mortgage and how to make it work for you.
Glenn J. Clawson
GCCPropertySolutions@yahoo.com
Has anyone figured out a good way to move properties profitably in our current market here in Michigan?
There are a lot of opinions out there, but are they actually working? And who’s really benefiting in the long run, the investor or the homeowner?
How about a program that actually benefits both parties?
If you're a senior citizen over the age of 62 and you live in the Tri-County area, you can now get into a new home with zero out-of-pocket expense and zero house payments for as long as you're living in the house.
This program works anywhere nationwide but for the benefit of this article we're concentrating on the Tri-County area.
The program is a federally-insured mortgage loan backed by the government called a Home Equity Conversion Mortgage, or HECM for short. It is the ONLY reverse mortgage insured by the federal government and the FHA, which is part of HUD.
Who is eligible for this program you ask?
Anyone 62 years old or older is elibible. The house must be the individual's primary residence, it must meet HUD's minimum property standards and all they have to do is discuss the HECM loan program with a HUD approved counselor. That's it!
Do you think there is an opportunity here? Absolutely.
This is a fantastic way to get seniors into a house with no out of pocket expense and no house payments for as long as they reside in the house.
What are the benefits to the 62 and up homeowner?
Let me give you a simple example: We purchase a property at a steep discount on the NW side of town in a nice area. The ARV is $100k. We rehab the property. One of our clients, Joe Homeowner, aged 63, was introduced to the program and instantly became interested. He just happens to want to live on the NW side of town next to his grand-kids. We show him the property and he wants it. Our selling price is $65k.
That's $35k in built-in equity right off the bat for those of you keeping score at home.
HUD has already approved the property as meeting their minimum standards so that's no problem.
All Joe Homeowner has to do is discuss the program options with a HUD counselor and he's approved. No down payment, no out-of-pocket expenses, and no house payments for as long as it remains his principal residence.
He has $35k he now has access to anytime he wants, for anything he wants, as a 1) single lump sum. 2) for cash withdrawls set up as a "creditline" or 3) as a monthly cash advance for a specific period of time. Or any combination of the three cash advances.
And he never has to pay it back as long as he continues to live in the house!
That $35k will come in very handy in his golden years. Of course, he can only get as much as the house is appraised for.
But if property values go up eventually, so will his loan advances.
If the property appraises for $110k 2 years later, his $35k equity just turned into $45k that he can tap into whenever he needs to at whatever amount suits him.
No loan payments, no house payments. Ever.
The only stipulation to all this, and that's part of your HUD counselor discussion, is Joe Homeowner pays only the taxes and insurance on the property every year – that's it!
The counselors will make sure Mr. Joe Homeowner is able to afford the property taxes and insurance long before he closes on the house of his dreams. If that isn't going to be a problem, he's golden.
Obviously HUD and the government don't want to place people in homes they can't afford the taxes and insurance on; then nobody wins.
Are there any disadvantages to a reverse mortgage? Sure, there are pros and cons to every situation. We'll touch on those in the next email.
But in this real estate market right here right now in Michigan, this program is hands down a winner for seniors over 62 and for investors sitting on empty properties they can't move, now they have a great option.
If you have senior clients over 62 that you weren't sure what to do with before, now you know you can with a HECM reverse mortgage.
If you're a senior reading this article and are in the Tri-County area of Detroit, send us an email or give us a call and we'll be more than happy to walk you through the steps of the process.
You're under no obligation, but we can educate you on how a reverse mortgage can work to your advantage so your dream of owning your own home can become a reality no matter what your income is or how poor your credit currently is.
We can help you! Contact me below and I'll be more than happy to assist you with any questions or concerns you might have regarding a reverse mortgage.
In my next article I'll discuss the basic loan features of a reverse mortgage and how to make it work for you.
Glenn J. Clawson
GCCPropertySolutions@yahoo.com
posted by Ralph Marcus (Mark) Maupin | 4:39 PM
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