By Richard McWhorter, SR. Retirement Mortgage Advisor  

Ever worked with a seller who seemed eager to move – only to stall out for months?

You’re not alone.

Across the country, real estate agents are seeing the same pattern: Clients in their 60s and 70s say they want to downsize, relocate, or simplify… but never quite make the move.

At first glance, it looks like indecision. But it’s not. It’s fear. Uncertainty. And questions no one’s really answered.

Here’s what these homeowners are actually struggling with:

• “I don’t want another mortgage payment on a fixed income.”
• “What if I outlive my savings?”
• “Will I regret giving up a home that’s paid off?”
• “Can I afford to move closer to my kids… or buy something that’s more age-friendly?”

These aren’t objections – they’re signals. They’re saying “I don’t know how to safely do this!”

And that’s where you come in.

The HECM for Purchase: The Tool Nobody Tells Older Sellers About

Most Realtors haven’t been trained on it. Many clients haven’t heard of it. But for older homeowners stuck between wanting a change and fearing the financial consequences, the Home Equity Conversion Mortgage for Purchase (HECM for Purchase) could be the perfect solution.

Here’s the gist:

• It’s an FHA-insured reverse mortgage designed for home purchases – not just refinancing.
• It allows buyers aged 62+ to purchase a new primary residence using a combination of cash and a reverse mortgage loan.
• The result? No monthly mortgage payments required for as long as they live in the home (property taxes, insurance, and upkeep still apply).
• The buyer stays on title, retains full ownership, and the loan is non-recourse – meaning they nor their heirs can ever owe more than the home’s value at sale.

For your client, that means:

✅ They can right-size into a more suitable home without taking on new monthly debt

✅ They keep more of their proceeds or retirement funds in hand

✅ They gain flexibility and peace of mind instead of feeling “locked in”
And for you as the agent?

✅ You’re not just closing a sale – you’re removing emotional and financial barriers

✅ You’re adding value by solving a problem no one else even brought up

✅ You might just create two transactions: a listing and a purchase

Let’s Look at a Real-World Example

Imagine this:

A 70-year-old widow owns a two-story home valued at $450,000 with no mortgage. The stairs are getting harder, and her kids live in another part of the state. She’s ready for something smaller, single-level, and closer to family.

But she’s hesitant:
– She doesn’t want a mortgage payment on her Social Security income
– She worries that tying up too much in a new house will leave her “house rich, cash poor”
– She’s overwhelmed by the idea of making such a big move late in life

Enter the HECM for Purchase.

She sells her home and nets $420,000. Instead of spending all of it on a new home, or taking on a forward mortgage, she uses about $250,000 as the down payment on a $450,000 one-story home near her daughter, and the reverse mortgage covers the rest.

✅ No monthly principal and interest payments
✅ Roughly $170,000 still left in her account
✅ And the peace of mind that she’s set up for this chapter of life

That’s not just a win for her. It’s a win for the professional agent who helped her get there.

Why Most Realtors Miss This — And Why You Shouldn’t

To be clear, this isn’t magic. And it’s not for everyone.

But if you’re working with 62+ sellers and hearing a lot of “maybe next year”… it’s time to consider that what they need isn’t motivation – it’s clarity.

The HECM for Purchase removes the fear of the unknown and reframes what’s possible.

When you bring this to the table:

• You elevate the conversation beyond comps and commission
• You become the trusted advisor who actually solved the client’s deeper concern
• And you open up a new lane of listings and purchases with older homeowners who were previously “stuck”

Want to Learn More?

If you see older sellers hesitate – why not add a new tool to your listing presentation. Let’s talk.

Education is free. And the upside? It might just be the difference between a dead lead… and a done deal.
________________________________________________________________________________________________________

Let’s Have a No-Pressure Conversation

At Ridge Reverse, we’re not here to “sell” anything. We’re here to help you and your clients understand options. We work with homeowners, their families, financial advisors, attorneys, and real estate professionals provide real-world clarity – not fluff.

If you’re curious how a reverse mortgage could extend your savings and reduce financial pressure, let’s talk. A short, friendly conversation could open the door to years of breathing room.

Next Steps?

Simply reach out to us at Ridge Reverse, powered by Amerifund, and let’s discuss how we can help you with a product designed specifically to meet your needs for a lifetime of happiness… while enhancing long term cashflow and quality of life. Feel free to call, text (mobile: 404-313-9785 anytime, office: 863-456-7810), or email richard.mcwhorter@ridgereverse.com and find out more.

Ridge Reverse, provides an Equal Housing Opportunity. Information is subject to change without notice. This is not an offer for extension of credit or a commitment to secure a loan. Some restrictions may apply. This material is not from HUD or FHA and has not been approved by HUD or any government agency.

Richard W. McWhorter, NMLS 1618644, as an independent reverse mortgage specialist can assist in your reverse mortgage needs in most states. Follow him on LinkedIn, Reddit, the Ridge Reverse website or contact him directly at Richard.McWhorter@ridgereverse.com.

The post Older Sellers Hesitate – And How You Can Help Them Move Forward appeared first on Ridge Reverse.

“Will my savings last?”

With inflation, market uncertainty, and increasing medical costs, even well-prepared retirees are feeling the pinch. That’s where a reverse mortgage can come in — not as a last resort, but as a strategic tool to extend the life of your savings while preserving the lifestyle you deserve.

How a Reverse Mortgage Helps You Stretch Retirement Dollars

A reverse mortgage allows homeowners aged 62 and older to convert part of their home equity into tax-free funds — without giving up ownership or taking on monthly mortgage payments.

Here’s how it can work to your advantage:

• No Monthly Mortgage Payments Required
  That’s right — the home pays you. You remain responsible for property taxes, insurance, and basic upkeep, but you’re no longer writing a monthly check to the bank. That alone can free up hundreds or thousands of dollars each month.

• Protect Your Investment and Retirement Accounts
  When the market dips, the last thing you want to do is sell investments at a loss to cover expenses. A reverse mortgage gives you breathing room, allowing your portfolio to recover while your cash flow stays intact.

• Tailored Cash Flow Solutions
  Whether you need a lump sum for a major purchase, monthly income to supplement Social Security, or a standby line of credit for emergencies — reverse mortgages are flexible and customizable.

This Isn’t About Spending More — It’s About Stressing Less

Many of our clients aren’t looking to spend more — they just want peace of mind that comes from knowing their retirement plan can weather whatever comes next. Others want to enjoy life now without sacrificing lifestyle by second-guessing every dinner out, family vacation, or home upgrade.

Reverse mortgages aren’t for everyone. But for the right homeowner — or the right client — it can be the difference between making it through retirement… and thriving in it.

Let’s Have a No-Pressure Conversation

At Ridge Reverse, we’re not here to “sell” anything. We’re here to help you or your clients understand options. We work with homeowners, financial advisors, attorneys, and families to provide real-world clarity — not fluff.

If you’re curious how a reverse mortgage could extend your savings and reduce financial pressure, let’s talk. A short, friendly conversation could open the door to years of breathing room.

Next Steps?

Simply reach out to us at Ridge Reverse, powered by Amerifund, and let’s discuss how we can help you with a product designed specifically to meet your needs for a lifetime of happiness… while enhancing long term cashflow and quality of life. Feel free to call, text (404-313-9785), or email richard.mcwhorter@amerifund.com and find out more.

Ridge Reverse, provides an Equal Housing Opportunity. Information is subject to change without notice. This is not an offer for extension of credit or a commitment to secure a loan. Some restrictions may apply. This material is not from HUD or FHA and has not been approved by HUD or any government agency.

Richard W. McWhorter, NMLS 1618644, is an independent reverse mortgage specialist can assist in your reverse mortgage needs in most states. Follow him on LinkedIn, Reddit, the Ridge Reverse website or contact him directly at Richard.McWhorter@Amerifund.com.

The post Sacrificing Lifestyle to Stretch Savings? appeared first on Ridge Reverse.

 Are you still required to pay on a mortgage?

Donna B. was getting tired of the stress.  A residential Realtor for over 35 years, a former top performer in her market and a distant dream to just slow down.

The problem?  She had refinanced her home in order to buy investment rental homes, and the new mortgage payments just weren’t quite being covered by her rental income month in and out.

And, the worry that followed the pressure of making those mortgage payments was becoming overwhelming.

So, following the advice of a trusted friend, Donna reached out to Richard McWhorter of Ridge Reverse to see what could be done. And after a thorough review of her financial needs a solution was quickly agreed upon…

The solution?  Sell one of those rental homes, take some of the money along with a Home Equity Conversion Mortgage (HECM) to help pay off that first mortgage on her primary residence and use it to remove the pressure of those payments. Just like that, she is no longer worried about cash flow.

And now?  She is still very active in the residential real estate industry, as she has discovered what made her choose it as her lifetime of work…  the love of her day to day, the meeting new people and helping them buy their next dream home.

Today, she no longer has the hammer of making payments on that old first mortgage every month.  If she doesn’t close a loan, she skips that month.  When she does close one, she voluntarily makes a payment or two just to pay down the HECM loan balance.

Why pay it down at all?  Donna understands that every payment made goes toward increasing the line of credit balance that automatically came with her HECM loan…  a line that has no personal guarantee with the home itself as the sole collateral, that cannot be called as long as she continues to occupy the home as her primary residence, maintains the home and keeps current her taxes, insurance and HOA fees.

And the available line of credit borrowing capacity is FHA guaranteed to grow, every month, at the same rate she is paying on the outstanding loan balance regardless of the value of the home.  For how long? Again, as long as she lives in the home as her primary residence (and keeps the home in good repair and pays taxes, insurance and other fees when due).

Maybe you, or someone you know, needs a similar success story but still thinks the new HUD/FHA Home Equity Conversion Mortgage is too good to be true?  As with any loan product, there is always additional information to discuss. Give Richard McWhorter of Ridge Reverse a call, text (863-456-7810) or email (richard.mcwhorter@amerifund.com) and find out why what you use to hear about reverse mortgages is keeping you from one of the best and safest long term financial products on the market today.

Next step?

Simply reach out to us at Ridge Reverse, powered by Amerifund, and let’s discuss how we can help you with a product designed specifically to meet your needs for a lifetime of happiness… while enhancing long term cashflow and quality of life. Feel free to call, text (863-456-7810), or email richard.mcwhorter@RidgeReverse.com and find out more.

Ridge Reverse, provides an Equal Housing Opportunity. Information is subject to change without notice. This is not an offer for extension of credit or a commitment to secure a loan. Some restrictions may apply. This material is not from HUD or FHA and has not been approved by HUD or any government agency.

Richard W. McWhorter, NMLS 1618644, is an independent reverse mortgage specialist can assist in your reverse mortgage needs in most states. Follow him on LinkedIn, Reddit, the Ridge Reverse website or contact him directly at Richard.McWhorter@RidgeReverse.com.

The post 62+, A Commissioned Salesperson and Still Worried About Cash Flow? appeared first on Ridge Reverse.

Reverse mortgages have been around for nearly 60 years and, during that time, have taken their fair share of knocks…  from the unscrupulous peddlers to the lack of sufficient government oversight. Find out below how the Home Equity Conversion Mortgages (HECM), (the only HUD approved, FHA insured reverse mortgage available) has been turned into one of the safest mortgages available on the market today.

To be sure, HECMs aren’t for everyone.  But once these 5 areas are understood, you might find them the right tool to finally move into that perfect 55 and over golf community or as a potential lifetime line of credit… or both!

1. Reverse Mortgage Myths: The Bank Will Own My Home

A Home Equity Conversion Mortgage (FHA insured reverse) is a mortgage, and a lien, like any other on a borrower’s home and the borrowers name remains on deed as owner. The lender’s only claim on your home is the balance of the mortgage itself at the end of the loan.  While HECM loan documents are nearly identical to a typical traditional mortgage, they have far more mandated protections than a typical loan provides.

In fact, with a reverse mortgage, borrowers and their heirs actually have significantly more flexibility available to them than a traditional mortgage, with the ability to take up to 12 months to sell, pay off the loan and keep all remaining equity, to turn in the keys should the loan balance exceed the value of the home, or simply pay off (or refinance) the mortgage and keep the home.

2. Reverse Mortgage Myths: If I have a mortgage, I can’t get a reverse.

A HECM reverse is a standalone mortgage that replaces all mortgages that may be on a home. For many borrowers, one of the primary objectives is to be mortgage free, significantly improving monthly cashflow by eliminating monthly house payments. A HECM provides for that same freedom from monthly mortgage payments, and frees up a portion of that “all cash equity” to be reallocated to better long term investment.

Additionally, if a borrower is considering a HELOC, the potential benefits of a HECM become even clearer. Non-callable, regardless of the value of the home, no personal guarantees, the ability to draw on available balance for the life of the loan and the removal of the monthly obligation of making mortgage payments can be tremendously valuable alternatives for homeowners.

Special Exception:  There is a reverse second mortgage product that has been introduced by the largest reverse lender in America… the Homesafe Second.  Now, if you would like to access some of your equity without losing that super low 3% rate on your current mortgage, just reach out for  the particulars!

3. Reverse Mortgage Myths: Reverse mortgages have large out of pocket expenses.

Reverse mortgage closing costs are included in the balance of the loan at closing and typically require very little costs out of pocket to close. While a reverse will be somewhat more expensive than a traditional mortgage, the largest single cost may well be the mortgage insurance due at closing.  But, that premium is the very reason a HECM can provide additional protections, such as allowing:

• the borrower nor their heirs have any personal guarantees on the loan,
• the available line of credit feature grows independent of the actual value of the home, and
• the line of credit is non-callable and non-freezable (as long as the home is your primary residence and you remain current on taxes, insurance and other property fees as well as honoring other loan promises similar to all mortgages).

So, are they more expensive to close? Yes. Does FHA and HUD guarantee significant additional benefits made available to the borrower as a result?  Yes, again. And, finally, are all of these benefits available on “normal” first mortgages or HELOCs? Absolutely not.

4. Reverse Mortgage Myths: I can’t leave my house to my children.

A corollary to Myth 1, above, this stems from the misconception that a reverse mortgage means the bank owns the home. The HECM is just a mortgage and, at the end of the reverse, the loan needs to be paid off like any other mortgage.  At Ridge Reverse, we encourage any interested party (whether heirs or financial professionals) to take an hour or so and sit in on the independent counseling required by HUD to ensure all parties are well versed in the true pros and cons of reverse.

This myth is yet another reason why your HECM reverse mortgage consultant should learn as much as possible about your individual needs.

While the HECM is not for everyone, if you are looking at this mortgage to help:

• payoff existing mortgages to improve monthly cashflow,
• augment your long term financial plan,
• avoid relying on children for emergency spending,
• enjoy the freedom to travel when and where you desire,
• purchase that retirement (or next) home, or
• any of the great reasons to have instant access to some of your cash equity in your home,

it may indeed be a solution worth considering.

5. Reverse Mortgage Myths: Reverse mortgages are only for desperate people

It is true that, originally, reverse mortgages were considered a “loan of last resort”.  And while you can still get a reverse mortgage when no other loan is an option, it is an unfortunate reality today that if a financially strapped borrower seeks a reverse as a last lifeline, with new HUD financial assessments required many find they may no longer qualify.

The best advice? Don’t wait until desperation to learn more about the benefits of a reverse mortgage. And, to take full advantage of the Line of Credit growth factor to its fullest, the smartest move is to secure your reverse as soon as you qualify to make sure your available line grows as fast as possible during this higher interest rate environment.

As always, the above information is the tip of the iceberg in what you need to know about one of the safest loan products available.  As with any financial instrument, you should always consult the new HECM rules and protections with a trusted financial professional and an experienced reverse mortgage originator.

If you find yourself thinking a Home Equity Conversion Mortgage or proprietary reverse may be of interest, but still have more questions, feel free to call, text (863-456-7810), or email richard@amerifund.com and find out more!

Next step?

Have other questions or heard of other reasons why a HECM might not be right for you? Simply reach out to us at Ridge Reverse and let’s discuss how we can help you with a product designed specifically to meet your needs for a lifetime of happiness… while enhancing long term cashflow and quality of life. Feel free to call, text (863-456-7810), or email richard@amerifund.com and find out more.

Richard W. McWhorter, NMLS 1618644, is an independent reverse mortgage specialist and can assist in your reverse mortgage needs in most states. Follow him on LinkedIn, the Ridge Reverse website or contact him directly at richard.mcwhorter@ridgereverse.com.

The post Reverse Mortgage Myths, Or Why You May Miss One Of The Most Important Loan Products Available Today… appeared first on Ridge Reverse.

According to Pew Research, almost one-half of adults in their 40s and 50s fall into the Sandwich Generation, with about one-third (32%) of those saying they had given a parent financial support in the past 12 months. And when those middle-aged adults also have children to support, welcome to the financial cost of older parents on children.

Tom and Julie M. found themselves in just that position.  Trying to raise their children and increasingly being called upon by their parents for financial assistance.

It wasn’t that their parents didn’t have some means, but unfortunately nearly all their savings were tied up in the equity in their home.  A common occurrence in today’s older households.

But, something had to give, because the fear of the unknown expenses were causing a great deal of stress between Tom and Julie and, of course, with their parents.

Enter Ridge Reverse and Richard McWhorter, who was referred through Tom and Julie’s financial professional.  After sitting down with the family and learning of their needs, a Home Equity Conversion Mortgage Line of Credit was agreed upon as the solution.

The parent’s home had a value of $750,000 and a small first mortgage of around $100,000, but unfortunately had a $50,000 home equity line of credit that was soon to convert to its amortization period.  Not a good situation on their limited income.

So, Richard proposed a $300,000 Home Equity Conversion Mortgage that paid off the $150,000 first and second loans and left the remaining as a line of credit that could be drawn upon whenever any necessary repairs or other unexpected expenses came up.*

Why was the HECM the solution for them?

• A HECM has no personal guarantees to the parents or heirs. The home is the sole collateral.
• A HECM LOC is non-callable and non-freezable, provided one of the borrowers continues to live in the home as their primary residence and maintains the home, pays the expenses (taxes, insurance and upkeep) and honors other default provisions common to other mortgages.
• The Line of Credit has an FHA guaranteed growth rate that is the same as the rate on the outstanding loan balance and grows without regard to the underlying value of the home. (A key factor in this higher interest rate environment…)
• The HECM requires no monthly payments, freeing up the parents to forego their previously required monthly mortgage payments and substantially improve their cashflow.

But, best of all, Tom and Julie are relieved knowing that the parents are self-sustaining, that they can not just survive, but live more comfortably now that their expenditures are covered by the increased cash flow as well as the home equity when needed.

For the parents, they far preferred their equity being used to solve cashflow problems than to have to ask their children for the help.  Tom and Julie far preferred it as well!

*Note, the example used herein is for informational purposes only.  Actual equity proceeds available are based on age, appraised value and the expected interest rate as determined by HUD.

Maybe you, or someone you know, needs a similar success story but still thinks the new Home Equity Conversion Mortgage is too good to be true?  As with any loan product, there is always additional information to discuss. Give Richard McWhorter of Ridge Reverse a call, text (863-456-7810) or email (richard.mcwhorter@amerifund.com) and find out why what you thought you knew about reverse mortgages is keeping you from one of the best and safest long term financial products on the market today.

Next step?

Want to know more about how access to your equity line of credit can help you thrive? 

Simply reach out to us at Ridge Reverse and let’s discuss how we can help you with a product designed specifically to meet your needs for a lifetime of happiness… while enhancing long term cashflow and quality of life. Feel free to call, text (863-456-7810), or email richard.mcwhorter@amerifund.com and find out more.

Richard W. McWhorter, NMLS 1618644, is an independent reverse mortgage specialist and can assist in your reverse mortgage needs in most states. Follow him on LinkedIn, the Ridge Reverse website or contact him directly at richard.mcwhorter@ridgereverse.com.

The post HECM And The Sandwich Generation – Relieving The Financial Cost Of Older Parents On Children appeared first on Ridge Reverse.

A question for real estate and financial professionals: What do retirees, and those preparing to retire, want in what could be their last home purchase?

• Single-story living
• Modern design
• Upgraded kitchen
• Outdoor living space
• Low Maintenance
• Neighborhood and nearby amenities
• Proximity to family, children and grandchildren
• Manageable or no monthly payments

The Problem:

They just sold their home, or are thinking about it, and want to purchase the next home all cash. But, all cash in this market doesn’t find a home that meets their wants and needs… Or, the market is now telling them holding on to some cash in the upcoming period of uncertainty might be a good idea.

The Solution:

There is a unique, little known loan program that was designed just for them that you should consider.

It is available for the issue middle income and affluent boomers have had in purchasing their dream home… their cash available to spend won’t meet all the requirements wanted in what could be their last home. Especially in this high interest rate environment!

It is called the Home Equity Conversion Mortgage Purchase Program, or just H4P, and has only been offered since 2009 and the Great Recession.

What makes this program different? It carries a lower interest rate than current market, requires just one payment of about 60% of the purchase price of the home (depending on the age of the borrower) and there is no monthly mortgage payment required for as long as the home is the borrower’s primary residence (where the borrower typically spends the majority of the calendar year) as well as property charges and upkeep are maintained.

How does this help? Your client could significantly improve their purchasing power compared to paying cash or taking out a regular mortgage.

And now for 2024, your clients can qualify for homes up to $1,149,000 with the FHA HECM or $4,000,000 with some excellent lender proprietary products.

How Do They Qualify?

The new H4P program is for borrowers 62 and up, are required to take independent HUD approved counseling and must undergo a financial assessment. It’s insured by the FHA, regulated by HUD and is a mortgage just like any other, except with far more protections provided through vigorous federal government oversight.

Protections and Benefits?

• The borrower still owns the property and remains on the deed. The lender merely has a lien on the property, just like a “normal” mortgage.
• The loan is easier to qualify for, in that income requirements do not include a monthly mortgage payment and credit history is reviewed as opposed to credit scores.
• There are no personal guarantees from borrower or heirs. The home is the sole collateral and neither will ever owe more than the value of the property at disposition.
• It can have a unique line of credit feature that grows in borrowing capacity at the same rate as is being charged on the outstanding loan balance.
• The line can not be called or frozen regardless of the value of the home (assuming the borrower keeps the home as their primary residence and there are no significant defaults common to all mortgages).
• While rare, the loan can grow to be in excess of the market value of the home, making it a near perfect hedge against a housing bubble blowout.
• There is no prepayment penalty, nor prohibition against making payments, on the loan. And, many borrowers voluntarily repay the loan as if it were a typical mortgage in order to increase their available line of credit dollar for dollar on repayments.
• It can become a near perfect buffer asset, freeing up liquidity reserves for better allocation with available line of credit access within 3-5 business days.
• When the time comes to sell or the last borrower no longer lives in the home… simply sell, pay off the mortgage and all remaining equity belongs to the borrower or their heirs.

It’s a mortgage just like any other, except far safer and far more flexible.

Just like that, they can buy the home they really want, without tying up a large portion of their savings or drawing down their long-term retirement portfolio.

Next step?

Simply reach out to us at Ridge Reverse and let’s discuss how we can open an entirely new source of income for realtors and a preservation/enhancement of long-term retirement assets for financial professionals. All, with a product designed specifically to help meet your client’s needs for a lifetime of happiness… while enhancing long term cashflow and quality of life.

Richard W. McWhorter, NMLS 1618644, is an independent reverse mortgage specialist and can assist in your reverse mortgage needs in most states. Follow him on LinkedIn, the Ridge Reverse website or contact him directly at richard.mcwhorter@ridgereverse.com.

The post All Cash Home Purchase Coming Up Short? appeared first on Ridge Reverse.

Jack and Irene F. had been married 52 years, raised two wonderful adult children, watched them both marry the perfect wives and had 4 perfect grand babies.

Unfortunately, those 52 years were not all rosy and some scars just can’t be repaired.  And, sometimes just riding off together into the sunset no longer seems an option.

So divorce it was… and attorneys and money being spent they really didn’t have to spend without impacting their retirement.  A retirement which now was going to be spent in separate households.

Irene wanted to stay in the home… a place with so many great memories but also with a small mortgage that must be paid.  Jack just wanted to move to a condo near one of his children, the grand babies and a golf course.

With assets being divided, their divorce attorney recommended Richard McWhorter of Ridge Reverse, for having worked with him in the past it was an easy solution.

Richard worked with Jack, Irene and their attorney to guide them through the Home Equity Conversion Mortgage process.  A process that was a win/win for everyone…  or at least as good a “win” as could be achieved under the circumstances.

Irene closed on the reverse mortgage and, due to her age, was able to get 57% of the equity value of the home in cash at closing.  Jack was then paid his share, and promptly closed on that condominium with a reverse mortgage of his own using a HECM for Purchase.

Now, neither have a mortgage payment to worry about, the children are happy that the financial strain of the divorce has been resolved without their “assistance” and all are now moving on.  Thankfully it was a relatively amicable splitting, and family holidays with everyone present remain happy occasions.

Hard to say it was a true win/win, as Silver Divorces are rarely a solution anyone wants.  But, the HECM was their best solution to the housing issues… making the division of assets at least one of the easier parts of the process.

Hopefully, you nor anyone you know will ever have to endure a divorce in retirement years.  But, should the unfortunate event occur, feel free to call us  to see how the Home Equity Conversion Mortgage and the HECM for Purchase may be the best solution available.

Maybe you, or someone you know, needs a similar success story but still thinks the new HUD/FHA Home Equity Conversion Mortgage is too good to be true?  As with any loan product, there is always additional information to discuss. Give Richard McWhorter of Ridge Reverse a call, text (863-456-7810) or email (Richard.McWhorter@Amerifund.com) and find out why what you use to think about reverse mortgages is keeping you from one of the best and safest long term financial products on the market today.

Next step?

Want to know how home home equity can help solve some of your life’s issues? Simply reach out to us at Ridge Reverse and let’s discuss how we can help you with a product designed specifically to meet your needs for a lifetime of happiness… while enhancing long term cashflow and quality of life. Feel free to call, text (863-456-4810), or email richard.mcwhorter@amerifund.com and find out more.

Richard W. McWhorter, NMLS 1618644, is an independent reverse mortgage specialist and can assist in your reverse mortgage needs in most. Follow him on LinkedIn, the Ridge Reverse website or contact him directly at richard.mcwhorter@ridgereverse.com.

The post HECM And Silver Divorce: Sadly It Happens And Home Equity Conversion Mortgages Help Clear The Deck appeared first on Ridge Reverse.

The Department of Housing and Urban Development (HUD) now requires that a third-party counselor be involved in every FHA insured Home Equity Conversion Mortgage (HECM).

Why is this so important in the protection of the borrower’s interests?  Because in the old days older homeowners were getting into loans that were poorly understood and, prior to 2013, were many times were not the right loan product for them.  And those loans lead to a great deal of heartache.

Now, with the changes to HECM loans by HUD, borrowers, co-borrowers and non-borrowing spouses must attend independent borrower counseling, whether in person or by phone.  Heirs are also encouraged to take the counseling course, which can take from 60 to 90 minutes. Why should you include your heirs?  If they are indeed going to be heirs, the last surprise anyone wants to hear from an executor is…  “there’s a mortgage on your parent’s property”.

How do you get the details behind the counseling? 

The loan originator will provide a list of approved counselors, however, in protecting the borrower even further, the originator is forbidden from recommending any particular counselor to the borrower. They are all FHA/HUD approved, but your mortgage originator just cannot recommend one over the other.  The borrowers then call as many as they would like, find out the when and how, and then book the appointment.

What happens during the independent borrower counseling session?

The counselor makes sure that the HECM loan is well understood, that the borrower understands the risks of the product and what the borrower’s responsibilities are to make sure the loan does not unintentionally come due… Just like any mortgage.

So, what are some of those items that can cause the loan to come due?

• The last borrower vacates the home for more than 12 months.
• Taxes, insurance, other required property fees (HOA, Flood insurance, etc,) are left unpaid.
• The home is not kept in good repair.

Other than the first bullet, all these items are typical of any mortgage.  Liens and lack of maintenance directly impact the lenders collateral and can cause a default on a mortgage.  Remember, it’s still your house and still just a lien against the property that has to be satisfied at the end of the loan.

Maybe you, or someone you know, needs a success story but still thinks the new HUD/FHA Home Equity Conversion Mortgage is too good to be true?  As with any loan product, there is always additional information to discuss. Give Richard McWhorter of Ridge Reverse a call, text (863-456-7810) or email (richard.mcwhorter@amerifund.com) and find out why what you use to think about reverse mortgages is keeping you from one of the best and safest long term financial products on the market today.

Next step?

Want to know more about the special protections FHA, HUD and the CFPB put in place for your HECM? Simply reach out to us at Ridge Reverse and let’s discuss how we can help you with a product designed specifically to meet your needs for a lifetime of happiness… while enhancing long term cashflow and quality of life. Feel free to call, text (863-456-7810), or email richard.mcwhorter@amerifund.com and find out more.

Richard W. McWhorter, NMLS 1618644, is an independent reverse mortgage specialist and can assist in your reverse mortgage needs in most states. Follow him on LinkedIn, the Ridge Reverse website or contact him directly at richard.mcwhorter@ridgereverse.com.

The post FHA’S NEW REVERSE: Independent Borrower Counseling … And We Encourage Heirs To Attend! appeared first on Ridge Reverse.

Reverse mortgages have become one of the primary drivers of 55+ communities over the last several years.  In fact, Epcon Communities (one of the largest developers of 55 and over neighborhoods), stated after introducing their FHA Home Equity Conversion Mortgage for Purchase (H4P) in 2013^[1], “Now, 30% of our homebuyers utilize this buying option.  After the closing, they only pay taxes, [insurance and] HOA fees…”

That’s right, with an H4P you no longer are burdened by a required monthly mortgage payment. Nor, are you prohibited to make payments at your convenience. It’s your home, and your mortgage… the loan just gives you the option to help make ends meet in those months when cash flow is tight.

The reverse mortgage for purchase (more accurately described as the Retirement Mortgage?) home financing option can make it easier and more affordable for homebuyers age 62 and older to buy a home that better fits their life.  Essentially, it allows borrowers to obtain a federally insured and regulated mortgage and buy a new home all within a single transaction.

Here are the top 5 reasons you may want to explore this option:

1. You’re selling your old home, and are considering an all-cash purchase… 

If you simply don’t want payments, 100% equity in non-liquid assets such as a home is not the only option and, many times, not even the best option. Consider putting a portion of that money in your new home and retaining the balance as part of your long-term financial plan, for traveling, for updating your otherwise perfect home for aging in place, or whatever you may need. No payments needed, nor prohibited!

2. Maximize your retirement planning options… 

For added flexibility, your retirement plan can be bolstered by creating a line of credit when you purchase your home with an H4P… especially if your plan was to pay all cash anyway.  Why not overfund the loan (pay all cash and fund the line of credit at the same time) and maximize your options?  For those looking to downsize, free up assets from the sale of the previous home and use those funds to create your line of credit.

More importantly? The available balance on the line of credit is guaranteed to grow at the same interest rate as is being charged on the loan balance outstanding. It’s is an automatic increase in availability and remains true even if your home value drops. And the line, as long as you are not in default on the loan, cannot be frozen or called… unlike a HELOC or a second mortgage.

 3. Increase your purchasing power… 

To buy a home with an H4P is to give homebuyers more purchasing power if they don’t want to drain all their cash in pursuit of their next home. It gives them the luxury to get a nicer home and add all the upgrades wanted and still have no mortgage payment.

Why “settle” for a retirement home that doesn’t match your dreams? You can use an H4P to afford a bigger, newer home with better amenities, in nicer neighborhoods within walking distance to shops and restaurants, or even the 55+ golf community you’ve always wanted.

And, still have no monthly mortgage payment when desired!

4. You want maximum flexibility and safety for you and your heirs…

Unlike a regular mortgage or home equity line of credit, there are no personal guarantees and the loan cannot be called by the lender unless you are no longer the primary resident, default by ignoring home maintenance or not staying current on taxes, insurance or other homeowner fees just like a “normal” mortgage.

You no longer risk losing the home because the next economic downturn has caused the value of your home to decline below a typical bank’s appetite for risk. The FHA mortgage insurance guarantees it.

And now, to something more important than purchasing a house with a Retirement Mortgage…

5. Create peace of mind by helping ensure your taxes and insurance are paid…

An H4P has a voluntary feature called a Life Expectancy Set-Aside (LESA) which will automatically pay taxes and insurance for you for the rest of your actuarial life.

These costs are paid by the lender (or servicer) by drawing from funds it set aside for you at the beginning of the loan term.  While these funds work like an escrow account, they actually are simply a set aside of the funds available to you… only drawn when due.

A line of credit allowing seniors to forgo monthly mortgage payments and draw against their equity to help ensure their taxes and insurance are paid is a tremendous benefit, allowing true peace of mind for borrowers and their heirs.

Concerned about what happens at the end of the mortgage? It’s still your (or your heirs) home! At termination, there are three options:

1. You and/or your heirs (should they want to keep the home) will simply owe the lesser of the loan balance or 95% of the appraised value.
2. Decide to sell?  There are 6 months to repay the mortgage with, in most cases, two 3-month extensions available by showing the home is actively marketed.
3. Or, with no personal guarantees, you or your heirs can simply hand the keys to the lender and walk away with no further obligations or impact on your, or your heirs, credit.

Finally, FHA and HUD have cleaned up the reverse mortgage industry with far more protections, independent counseling and other items designed to insure your loan and your home remains in your hands. The home belongs to you. The lender simply has a lien like any mortgage.

These 5 great reasons are just the beginning of the benefits of an FHA insured, HUD regulated HECM. As usual, you should always consult your financial professional or a reverse mortgage specialist to determine how it may be the perfect loan for purchasing your perfect home.

Next step?

Simply reach out to us at Ridge Reverse and let’s discuss how we can help you with a product designed specifically to meet your needs for a lifetime of happiness… while enhancing long term cashflow and quality of life. Feel free to call, text (863-456-7810), or email richard.mcwhorter@amerifund.com and find out more.

Richard W. McWhorter, NMLS 1618644, is an independent reverse mortgage specialist and can assist in your reverse mortgage needs in most states. Follow him on LinkedIn, the Ridge Reverse website or contact him directly at richard.mcwhorter@ridgereverse.com.

The post Did You Know You Can Buy a Home with a Reverse Mortgage? appeared first on Ridge Reverse.

Jim and Shirley B. saved and invested for years and had all their assets in all the right places with a trusted financial advisor.

But, with both now 75 and in great health, they just didn’t need the “big house”.  So, she fixed up the old place, made it beautiful, sold it and, because Jim didn’t want to have a mortgage payment, they paid all cash to downsize into a nice new condominium.

But while they loved the new condo, they quickly realized it just wasn’t right for aging in place. Shirley said, “I told Jim right then and there, I would never again make our home perfect for somebody else!”

The only problem was, with all their investments appropriately allocated for their age, where now to get the money to prepare their condo for their later years?

At that moment, they remembered a seminar led by Richard McWhorter of Ridge Reverse almost one year prior.  Maybe a Home Equity Conversion Mortgage (HECM, or more aptly called a Federally Insured Retirement Loan) was the solution to their problem.

What did Shirley say then?  “I told him that we weren’t going to just make our forever condo perfect for aging in place, but we were going to make our condo beautiful!”

After a complete discovery review with Jim and Shirley, Richard determined that they were perfect candidates for a HECM Line of Credit loan.  Why?  Because with their financial planner’s support, and their children on board, they were quickly able to secure a HECM LOC of $300,000 on their $650,000 condominium.

Why did their financial professional jump on board the new plan? He learned what the couple already knew, the line of credit could not be called or frozen, had no personal guarantees and was the perfect vehicle for emergency (or just because) withdrawals without harming their long-term financial plan.

Oh, and it didn’t hurt that the undrawn line balance had an FHA guaranteed growth rate equal to their interest rate on the outstanding loan balance regardless of the underlying value of the home.

The happy ending?  Jim and Shirley drew $100,000 of their $300,000 line, completely remodeled their condo to make it appropriate for their plans to live there forever and left the balance available to simply grow as part of their long-term financial plan.

And, it will continue to grow every year… even if the available balance grows to more than their home is worth.  Talk about a hedge against the next housing slump!

Oh, and with a HECM, the loan is non-recourse which means the home is the only collateral on the loan, meaning neither they nor their heirs assets can be taken to repay the loan.  It’s the only mortgage on the planet that provides that level of protection.

Success.  They didn’t touch their assets appropriately placed by their financial advisor, and they utilized their equity which had been over allocated in their home to make needed improvements and begin living the rest of their lives together.  All while continuing to have no required monthly mortgage obligations.

And their children?  Happy for their parents to live the hard-earned life they deserve.  Thankful that the home is the sole collateral and their parents would never need to ask them for emergency cash. And, knowledgeable that should their parents pass or otherwise stop using the home as their primary residence the loan options would be just like any other mortgage…  Pay off the debt or, in the unlikely case the loan balance may be in excess of the value of the home, walk away… their choice without any personal liability or damage to their credit scores.

Maybe you, or someone you know, needs a similar success story but still thinks the new HUD/FHA Home Equity Conversion Mortgage is too good to be true?  As with any loan product, there is always additional information to discuss. Give Richard McWhorter of Ridge Reverse a call, text (863-456-7810) or email (richard.mcwhorter@amerifund.com) and find out why what you use to think about reverse mortgages is keeping you from one of the best and safest long term financial products on the market today.

Next step?

Simply reach out to us at Ridge Reverse and let’s discuss how we can help you with a product designed specifically to meet your needs for a lifetime of happiness… while enhancing long term cashflow and quality of life. Feel free to call, text (863-456-7810), or email richard.mcwhorter@amerifund.com and find out more.

Richard W. McWhorter, NMLS 1618644, is an independent reverse mortgage specialist and can assist in your reverse mortgage needs in most states.. Follow him on LinkedIn, the Ridge Reverse website or contact him directly at richard.mcwhorter@ridgereverse.com.

The post Aging In Place? Jim And Shirley Were In That Place, But It Wasn’t The Place For Them… appeared first on Ridge Reverse.