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Down Payment Requirements on a HECM for Purchase (FHA Reverse Mortgage)

03-20-11

Jeannette Grismer - Reverse Mortgage Expert~Temecula Murrieta Menifee Hemet

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Office: (951) 634-4265

Mobile: (760) 744-1112

I get this question in various forms from a lot of customers and professionals.

Lenders and Realtors will ask, “What’s the LTV on a Reverse For Purchase?”

Homebuyers will wonder, “What kind of down payment do I need?”

The amount of money required as the down payment on a reverse mortgage is based upon three factors.

The appraised value, sales price or FHA lending limit (Whichever is less)
The current EXPECTED interest rate.
The age of the youngest buyer.

Once all these variables are known, your reverse mortgage consultant will enter them into the HECM loan calculator which will use current HUD Factors to determine the loan amount. The difference between that loan amount and the sales price is the “down payment”.

Don’t forget as a buyer you are responsible for also bringing in funds to cover the buyers closing costs, including but not limited to settlement fees, title insurance premiums, loan origination fees, Mortgage Insurance Premium, recording fees, homeowners insurance premium, pro-rated taxes & homeowners dues and transfer fees (if any) WHEW!

Purchasing your new retirement home, or any home for that matter is a complex transaction. . Be sure to utilize the services of an SRES certified Realtor and a Reverse Mortgage Consultant experienced in HECM for purchase transactions in order to avoid unnecessary stress.

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I just pended a listing in 3 days in the Four Seasons community in Hemet, a 55+ Community. Where are the doom gloomers now?

09-13-10

Tom Bashe - Broker, Realtor, Temecula Homes for sale, Temecula Real Estate

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Office: (951) 225-3030

Mobile: (951) 491-5052
Secondary: (951) 225-3215

I love being able to blog about this topic. I recently listed a 2 bedroom, 2 bathroom home in the guard gated community of Four Seasons in West Hemet. I took the listing, recommended a list price, the seller agreed to my list price, as they always do, and I proceeded with inputting the listing onto the MLS

This part never changes. I always fill in 100% of MLS data regardless if it is required to input the listing or not! I always use the full 500 character description, and input the maximum amount of photos (25 on the IMRMLS). My photos are taken by our in house photographer, who trained himself, he does use a very expensive camera along with a photo editing program, but the difference with him vs. other photographers: I get 50-100 high resolution photos to pick and choose from, whereas most professionals take 10-20 before wanting to immediately up their fee! I believe quality photos go a long way in drawing buyers in the door!

The address to my listing is: 7688 Couples Way, Hemet CA 92545. MLS # T10090970

My only other wish is that I could send this to every news anchor in town, so they can stop spreading this ridiculous Doom Gloom attitude torwards real estate! They need to stop relying on 1 drop in sales due to the expiration of a first time buyer credit, and start properly educating consumers! Bottom line, the market is fine if you price your home correctly, it always has been, and always will be!

A few photos below of 7688 Couples Way, Hemet CA 92545

ENJOY

Couples

AMAZING CURB APPEAL

Couples

PRIVATE BACKYARD

Couples

GOURMET KITCHEN

Couples

BEAUTIFUL GOLF COURSE

Couples

CLUBHOUSE

COUPLES

DINING ROOM

Couples

MASTER BEDROOM

1 Comment

Great Photos can be the difference between selling in days vs. Months!

09-03-10

Ryan Case

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Office: (800) 313-9050

Mobile: (951) 760-3170

Couples Front Photo The importance of great photos can never be underestimated! We chose to hire a photographer to shoot our homes as we feel the difference between traditional photos and photos taken and professionally edited is night & day. It can be the difference from your listing sitting on the market 1 day vs. 30-90 days! Buyers eyes immediately go to the vidid colors, and the "cartoon" feel as I like to call it. I feel in a down market, with less buyers and more sellers, the only way to stand out from the competition! Go the extra mile, take photos worthy of a magazine cover whether the home is a $50,000 home or a $5,000,000 home. You owe it to the sellers, to the family that entrusted you with selling their property in the shortest timeframe while getting the highest possible net. Look at the photos shot for us on one of our latest acquisitions, located at 7688 Couples Way, Hemet CA 92545. Let me know what you think! Input appreciated!

Couples Alt Front Photo Couples Backyard

Couples Kitchen Couples Kitchen Alt

Couples Master bedroom Couples Master Bathroom

Clubhouse Entrance golf course

6 Comments

You know you're doing good when......

09-02-10

Ryan Case

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Office: (800) 313-9050

Mobile: (951) 760-3170

I was reviewing comparable listings on a project we listed just last week in the Four Seasons 55+ community of Hemet when it brought a huge smile to my face. I was unsure of what price to go out at as the listings in that community are all over the place, from the 130,000 range to the 200,000 range. I realized that about 75% of those were short sales, which I do not consider competition. I then chose to see only Standard and Bank Owned homes, as those are homes where the seller has the ability to sell without needing approval of some sort. The following results made me jubilant (Yes, I get excited easily).

There are 11 standard and 9 REO listings inside Four Seasons, which is a private guard gated community on the west end of Hemet. The lowest Standard listing was listed at $139,900 and was 300 square feet smaller. The lowest REO listing was $139,900, and this was a trashed home 200 square feet smaller needing complete rehab. The average price was $160,000. The average price of our model was $180,000. Ultimately I decided to go out at $144,900. I did this for several reasons. I wanted to be the lowest listed home of our exact size. I wanted to ensure we had instant showings, instant offers, and that we weren’t stuck with a high list price in a down market.

Now that my list price was set, I decided to review in great detail the competition. There were 3 other homes active or pending that were model matches to our property. The one I found most interesting was one listed at $179,900, on the market for 127 days. Upon visiting the property, I made the following observations; the home was in the same condition as ours; the home backed an open field; and the home ultimately was a great comparable. Now to the part that made me smile. This was a standard investor owned sale. The investment group PAID $142,600!!! This means they PAID about what we are SELLING ours for!! We on the other hand PAID just $110,500! This goes hand in hand with our “buy low, sell low” policy! If we buy under the competition, and sell under the competition, we will remain in business for many years to come!