3 Unique Ways to Use Reverse Mortgages

We all knew it would be a matter of time when the median home price in Oahu would reach $1 Million.

In early September, we learned about this heartbreaking news. It was not surprising that some of my 1st time home buyer clients who were planning to purchase properties in Oahu stopped talking to me. I am not here sharing my grievance but sharing ideas how seniors can purchase homes, improve cash flow, or protect home equity through Reverse Mortgages.

HECM for Purchase (H4P):

Did you know that you can use a Reverse Mortgage to purchase a home? Imagine your home is too big and you want to downsize it, but you want to keep it simple and affordable. Then you may want to consider H4P. This is how it works. You purchase a smaller home after the sales of a larger home by using some of proceeds as a down payment. While it requires you to pay homeowner’s insurance, property taxes, and other fees as a homeowner, you are not required to pay monthly mortgage payments. You can pay off the mortgage when it reaches a maturity event.

Paying off the mortgage balance:

Are you currently experiencing difficulties with mortgage payments? If you are planning to keep your home for a long time and wishing to eliminate monthly mortgage payments, you may want to consider this option. It will convert your home equity to pay off the mortgage. Like H4P, it requires you fulfilling all obligations as a homeowner, but no monthly mortgage payments are required. Again, you can pay off the mortgage when it reaches the maturity event.

It should help you with your monthly cash flow.

Protecting Your Home Equity:

What does a Reverse Mortgage have to do with protecting your home equity? Suppose you just paid off the mortgage. Your home is free of liens. So, you want to keep it that way. Unfortunately, this can invite unexpected issues. Your whole home equity is available for creditors.

Read no further if you are fully protected or not going to have any auto accidents or any medical episodes (stroke, heart attack and etc.…) in the future.

Are you familiar with a Medicaid lien? Department of Human Services website states that they are required to place a lien of Medicaid recipients who receive long term care services with some exceptions. This is just one of many examples. There are other organizations or service providers with lien requirements too.

A Reverse Mortgage is a financial tool for seniors. Unlike Conventional, FHA, USDA, and VA loans, it was structured to convert home equity to meet with seniors’ unique requirements. For that reason, I hope more seniors will learn and understand its application and benefits so they can arm with more tools and options for their retirement planning. At the same time, I hope they will fully utilize and protect their home equity for safe and joyful retirement.

If you would like to know more, please call me at (808) 365-5900 or email me at Shinichi. Matsumoto@myccmortgage.com.

住宅ローンやリバースモーゲー ジに関し詳しくは (808) 365-5900 もしくは、EmailにてShinichi.

Matsumoto@myccmortgage.com まで、ご連絡ください。

Shinichi Matsumoto
Loan Officer
NMLS1852845
Direct: 808.365.5900
Email: Shinichi.Matsumoto@myccmortgage.com

CrossCountry Mortgage | 3555 Harding Avenue, #100 Honolulu, HI 96816 | NMLS3029 NMLS1379257
Equal Housing Opportunity. All loans are subject to underwriting approval. Certain restrictions apply.
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