Why has One of the Nation’s Leading Lifestyle-Rich Home Developers Made the Reverse for Purchase Program a Priority?
Epcon Communities, a home building and land development franchise operator based in Dublin, Ohio. Today, more than 26,000 families and individuals call an Epcon community home, which has made them one of the top lifestyle-rich home developers in the country year after year.
Now their business plan calls for nearly 1/3 of all their active adult purchases to be financed with a HECM Reverse Mortgage for Purchase!
This is a testimony to the work that my college Ann Marie Harrison (Security One Lending’s National HECM for Builder Director) has accomplished.
Why are Retired Clients Turning To This Strategy?
1. Retirees Don’t Want to Lock Up Cash in Equity. It has become increasingly unattractive in this environment to have resources locked up in the equity of your home AFTER a move.
EXAMPLE: A couple sells their $400,000 home and moves to another home (with no maintenance) that costs $400,000. But instead of paying for it cash and LOCKING up the equity. They opt to use the Reverse Mortgage for Home Purchase, that allows them to put around 50% down ($200,000) and have the Reverse Mortgage Finance the Rest. The Benefit:
- They did not spend all of the proceeds, They have $200,000 in liberated assets to help with their retirement enjoymen
2. Retirees Don’t Want A Monthly Mortgage Payment or
3. Retirees Don’t Want to Pull Cash Out of Savings
EXAMPLE: The same couple as above wants to move to a $600,000 home. In order for them to do this they would either have to take out a traditional mortgage and make payments or pull money out of savings. Neither of these are attractive to them, nor wise in most people given situation. See the post What’s the Impact of Paying Off An Existing Mortgage