Zach Boyle

You won't really find many people that offer this as it can be frustrating and both the sellers lender and the buyers have to agree, but you can do a CEMA to save the NY Mortgage Tax, which in the boroughs (1.8%) can be alot of money, even on the (0.8%) island or upstate it is still alot of money. You are really adding a lot of value by being the person bringing it to your buyer. You aren't even adding time to the transaction if you get the ball rolling on this right away.

This will only save the tax on the existing mortgage current balance, the buyer will have to pay mortgage tax on the difference.

Zach Boyle

Zboyle@nwecorp.com

http://www.reversemortgagenyny.com

http://nwreverse.com

This is the biggest issue that faces First Time Home Buyers in our area. There are many people working off the books and what looks like an easy deal can turn into a nightmare fast if the downpayment is put down without someone looking at the account they are using to check for large deposits.

To avoid this issue you should have your buyers go over their bank statements with their loan officer to make sure that you won't have an issue. If there is a deposit that is large and not consistant with their income you have to show where it came fr

There are some loopholes as with anything but I can't really go into that, just like there is still a bank out there that you can close FHA loans without adding in the unreimbursed business expenses when they are a straight W2 employee.

Call us if you ever get stuck: 516.612.7000

Zach Boyle

NWReverse.com

Right now is the best time for someone looking for a Reverse to Purchase or Reverse to Sell (see my other blog(. The supply is low and the demand is very high. The fixed rate has hit an all time low of 4.99% fixed, the lenders are all offering no service fee, and as a Reverse mortgage lender we are able to offer 0 upfront origination where the standard charge is normally up to $6,000.00. In addition to the very low rates, the lenders are offering no service fee which means an extra 3 to 5,000 in your clients pocket.

With the limits at $625,500 for the rest of this year it seems this spring is going to be the best time to capitalize on a reverse mortgage even with the lower home values that we are experiencing. These rates are going to go up with the currently rising interest rates. Keep the reverse in mind for all of your senior clients that may want to buy a 2nd home to capitalize on these amazingly low purchase prices.

Everyone has heard of Reverse for Purchase, but many realtors don't consider Reverse to Sell.

A Reverse to Purchase is a Government insured loan for home buyers 62 or older that can make a large downpayment. A good ballpark is if the buyer is only 62 they will qualify for a loan of about 45% of the purchase price up to the current temporary loan limit of $625,500, the older the buyer is, the greater of a loan percentage they will qualify for. The benifits are that the buyer or buyers will have No payments for the rest of their lives. There is also no income qualifications (which is the problem with most purchasers) and no credit check. Hopefully potential buyers age when over 62 is starting to light off a few sparks for you.

The sparks that normally don't go off are a Reverse to Sell, this is when you list a dilapidated property for a senior that is over the age of 62. Many seniors have a hard time keeping up with renovations and just maintaining their property. When you mention what you would like to see them change or update to help sell the house they have no money, or are possibly even selling because they are in foreclosure. You are the expert that knows that with about $30,000 in renovations and landscaping you will be able to get them $70,000 more of a sale price, and you will be able to sell the property much faster without trying to keep the potential buyers from looking at the kitchen too long.

If the seller has the equity and are over the age of 62 they qualify. If the loan makes sense to them to do this pretty much nothing can stop them, the loan even allows for a cost to cure. The biggest catch with Reverse Mortgages is the cost, well timing is everything and right now is the perfect time. Due to very high demand, low rates and lack of supply (the banks are paying high YSP for the lowest floor rate) we are not even charging an upfront origination fee (most lenders charge the max or $6,000) The lenders have even droped the servicing fee which saves the borrower another 4 to 5K. Also it is ok for the property to have been on the market yesterday, take it off to close, and you can put it right back on while you are renovating.

A great website I found to get basic reverse info is: www.nwreverse.com

Thanks for reading,

Zach Boyle

Nationwide Equities

516-612-7000