On the surface, it may seem counter-intuitive for a realtor to use reverse mortgages to sell more real estate. With the exception of a HECM for Purchase, reverse mortgages are designed to enable senior homeowners to stay in their homes and not have to sell them. Here are a few strategies where a reverse mortgage may help to sell more real estate:

HECM for Purchase – A HECM for Purchase loan is designed to assist seniors buy their next home, combining proceeds from the sale of a previous residence with a reverse mortgage – all within a single transaction. Realtors leveraging this unique mortgage tool may help seniors purchase homes they might not normally think they could afford.

Down Payment Source – Reverse mortgages can be used as a source of a down payment for family or friends. Today’s increased down payment requirements can often prevent the realtor’s client from qualifying for the purchase of the home they want. This challenge is especially true with younger first-time buyers that often have parents or grandparents with equity that could be accessed via a reverse mortgage.

Investment Capital – Reverse mortgages can be used to unlock valuable equity in a senior’s home. Extra funds could provide investment capital that may be used to take advantage of real estate investment opportunities in today’s down market.

Unique Financing Option – Buyers who are 62 or older can use a reverse mortgage as a smart alternative to a traditional mortgage. With an increased risk for unexpected health events as one grows older, the security of knowing borrowers have the ability to stop making monthly mortgage payments without losing their homes —and utilize reverse mortgage funds to pay for these unseen events—is invaluable.