A Realtor Comments on a Reverse Mortgage Purchase of a Home

An example of an actual Reverse Mortgage sale:

Set Up: The Buyer sold a home for $300,000 cash. They purchased a Resale home at Robson Ranch for $300,000 and put $138,000 down. AAG, the Reverse Mortgage Lender arranged for an FHA insured mortgage to finance the difference between the down payment and the purchase price plus the closing costs. The Buyer was over 62 years of age. The Real Estate Broker negotiated a regular TREC purchase agreement. An Appraiser assessed the value of the sale using FHA guidelines. A Home Inspector assessed the condition of the home to FHA standards. A Title Company closed the transaction as a normal sale.

Transaction: AAG worked with the Buyer to ensure a clear understanding of the transaction. The Buyer negotiated a normal Sales contract through a Real Estate Broker, BBS Realty. The cost to the Buyer was 46% of the purchase price including all closing costs and the down payment.

Results: The Buyer banked $162,000 or 54% of the purchase price. The Buyer can live in the home, mortgage payment free until the last surviving Buyer passes. The Buyer pays ongoing taxes, insurance and upkeep of the home. Since the Title is in the Buyers name, the applicable property tax exemptions are applied. The Buyer can sell the home in the future and can benefit from the appreciation less the principal and accrued interest. The entire process took 60 days to Close. All parties were happy with the transaction.

AAG Loan Officer: Bill Krumm 972-235-1135

BBS Realty Broker: Bill Marshall 940-390-9789

Buyer sell their homefor $300,000 Cash

Buyer obtains a Reverse Mortgage to Buy a new home

Buyer enjoys life with no mortgage payments Buyer purchases a

Robson Ranch Resale home with 46% Down

Buyer deposits 54% in an investment