““A Better Life”A Better Life”HUD/FHA Seniors Loan HUD/FHA Seniors Loan

ProgramProgram

Presented by

Ken MetcalfSenior Reverse Mortgage Consultant

of

American Pacific Reverse Mortgage Group

Understanding the Reverse Understanding the Reverse MortgageMortgage

Key BenefitsKey Benefits

Can eliminate a borrowers current monthly mortgage payment.

Can provide a line of credit for future periodic use.

Can provide a stable supplemental monthly income.

FHA insured.Credit is not considered.

Why Do a Reverse Mortgage?Why Do a Reverse Mortgage?

Current retirement income is not adequate for desired standard of living.

High costs of medical insurance, healthcare and medications. Desire to travel and do things during

retirement. Excellent means for accessing home equity

without the monthly payments to diminish lifestyle.

How Does the Reverse Mortgage How Does the Reverse Mortgage Work?Work?

Basically, the interest on the borrowed amount accumulates and is added to the principal. Both the accumulated interest and principal are paid back from the sale of the home at a later date.

Unlike a traditional mortgage the borrower has no responsibility to make monthly or periodic payments as with a traditional mortgage.

No repayment is required as long as borrowers occupy the property. However, if borrowers repay any portion of the principal, it will be available for them to borrower again.

Qualification CriteriaQualification Criteria

Borrower's must be at least 62 years old.Home must be titled in borrowers name

or in their trust.Home must qualify under HUD

standards.Home must have adequate equity based

on HUD established county limits.

Qualifying DetailsQualifying Details Counseling Certificate is required by law.

– This is performed through a non-profit company. Counseling takes about 45 minutes and can be done in person or over the phone.

Home will have a HUD appraisal. May require hold-back for maintenance

issues. Will require a structural engineer if

manufactured home on permanent foundation.*

*Most, if not all, of the above items may be included in closing costs.

Qualifying ExampleQualifying Example

Age 89 Home Value

$350,000 HUD Value Limit

$417,000 Old Mortgage $ -0- HUD Maximum Loan

Limit $297,850 Monthly payment of

$2828 or LOC of $280,083

Age 72/74 Home Value $350.000 HUD Value Limit

$417,000 Old Mortgage $101,000 HUD Maximum Loan

Limit $250,250 Elimination of $455.04

mortgage payment and a LOC for $129,058.

Additional funds may be available in the future through the streamline refinance process or changes in

the HUD county lending limits.

Primary Types of Reverse Primary Types of Reverse Mortgage LoansMortgage Loans

Annual Adjustable rateMonthly Adjustable rate The amount of principal available to a

borrower is based on the type of mortgage a borrower chooses, age and HUD maximum limits. The monthly adjustable typically provides the greatest amount of money and is the most popular choice among borrowers.

Payment OptionsPayment Options

1. Lump sum to pay off an existing mortgage or for any other reason such as purchasing a new car.

2. Line of Credit similar to an equity line.3. Monthly fixed payment.4. Combination of 1, 2 or 3. Borrower can change payment options monthly if

they choose for a small fee, typically $20 per change.

More about the Line of CreditMore about the Line of Credit If the borrowers choose the LOC option, they will

find that the LOC grows annually. The growth rate is the interest rate charged during the loan. This means that every year the LOC increases allowing more funds to be available to the borrowers in future years.

For example, a typical reverse mortgage may have a 6.5% interest rate during year 1. At the end of the year a $150,000 LOC would then be at $159,750 allowing borrowers to access a little more of their equity.

The fixed monthly payment option already factors in an anticipated growth rate.

Line of Credit IllustrationLine of Credit IllustrationAnnual Growth Rates

$-$200,000$400,000$600,000$800,000

1 4 710 13 16 19

Years

$ A

mou

nt

Home ValueGrowth 4%

LOC Growth at6.5%

Drawbacks to Reverse Drawbacks to Reverse MortgageMortgage

Equity in home will diminish with each passing year as interest accumulates. This means less equity in your estate to be passed on to heirs.

Closings Costs include a 2% loan fee, mortgage insurance fee of 2% payable to the federal government, and other normal closing costs.

Interest is not tax deductible until home is sold or paid off.

For most, the benefits far out-weigh the drawbacks.

Commonly Asked QuestionsCommonly Asked Questions Do I lose my home once I do a Reverse

Mortgage? No, it is still your home and you can sell or refinance at any time. You are still responsible for paying your property taxes, homeowners insurance and normal maintanence.

Do I have to live in the home? You must live in the home for 6 months out of the year. If you don’t live in the home for 12 consecutive months or more you may be required to sell.

Can I rent out the home? No, you cannot convert the home to a rental property.

More questionsMore questions

What happens to my remaining equity when I die or sell? The remaining equity goes to your estate just as it would with a normal mortgage.

What happens if the accumulated principal & interest is more than the value of the home when it is sold? The FHA insurance pays the difference. You or your estate have no responsibility to pay any loss. The reverse mortgage is a non-recourse mortgage. Any other assets you may have are protected because of the FHA insurance.

Thank you for your time

I hope you have a better

understanding of

Reverse Mortgages

Ken MetcalfKen Metcalf

Senior Reverse Mortgage1-800-266-9010

E-mail: ken ken@kenmetcalf.com

Website: kenmetcalf.com

Contact me to answer any questions

Don’t go away yet

This is important

Hey! One more thing

Why Choose…Why Choose…

AMERICAN PACIFIC REVERSE AMERICAN PACIFIC REVERSE MORTGAGE GROUPMORTGAGE GROUP

American Pacific Reverse Mortgage GroupAmerican Pacific Reverse Mortgage Group

To unlocking your home equityis the lender of choiceis the lender of choice

We are members of…We are members of…

Ken MetcalfKen MetcalfSenior Reverse Mortgage ConsultantSenior Reverse Mortgage Consultant

American Pacific Reverse Mortgage GroupAmerican Pacific Reverse Mortgage GroupNMLS #235078/150590/1850NMLS #235078/150590/1850CA BRE# 00276581/01215943CA BRE# 00276581/01215943

Licensed by the Department of Licensed by the Department of Business Oversight under the CRLMABusiness Oversight under the CRLMA

3000 Lava Ridge Circle, Suite 290, Roseville, CA 956613000 Lava Ridge Circle, Suite 290, Roseville, CA 95661Mail Address 4095 Silver Street, Rocklin, CAMail Address 4095 Silver Street, Rocklin, CA

1-800-266-90101-800-266-9010

We have local representatives who can meet We have local representatives who can meet

with you in your homewith you in your home

We are always available for any local assistanceWe are always available for any local assistance

We are We are experienced and experienced and

dedicateddedicated

We specialize exclusively in We specialize exclusively in originating FHA Reverse Mortgagesoriginating FHA Reverse Mortgages

We work “ hands on” to make sure your We work “ hands on” to make sure your reverse mortgage is completed as quickly reverse mortgage is completed as quickly

and as efficiently as possibleand as efficiently as possible

We directly handle and control all aspects of We directly handle and control all aspects of the loan processing functions from the the loan processing functions from the

application to closingapplication to closing

Our processing time frame is typically the fastest in the industry

NO upfront out of pocket fees!NO upfront out of pocket fees!

We are firm in maintaining our policy We are firm in maintaining our policy of requiring…of requiring…

HUD and Fannie Mae HUD and Fannie Mae

have consistently recognized American have consistently recognized American Pacific Reverse Mortgage Group for our Pacific Reverse Mortgage Group for our

leadership in the reverse mortgage leadership in the reverse mortgage industry, as well as for our integrity, industry, as well as for our integrity,

knowledge and experience.knowledge and experience.

What have our clients said What have our clients said about us…about us…

Dear Ken,Dear Ken,

Just a message to repeat how much Just a message to repeat how much we appreciated your time and concern we appreciated your time and concern over our introduction to, and your over our introduction to, and your follow –through on our Reverse follow –through on our Reverse Mortgage arrangements.Mortgage arrangements.

Your thoroughness in walking us Your thoroughness in walking us through all the details and your through all the details and your immediate responses to our questions immediate responses to our questions whether asked orwhether asked or

faxed to you gave us unsurpassed faxed to you gave us unsurpassed confidence in you.confidence in you.

Again, thank you for your concern and Again, thank you for your concern and attention to us. It was our pleasure to attention to us. It was our pleasure to meet with you and work with you.meet with you and work with you.

Sincerely,Sincerely,

Mr. and Mrs. Herbert S.Mr. and Mrs. Herbert S.

My mother, Wilma R., and I want to My mother, Wilma R., and I want to thank you for your assistance and thank you for your assistance and patience in completing her reverse patience in completing her reverse mortgage. mortgage.

Even though the process was Even though the process was initiated in northern California and initiated in northern California and then had to be completed in southern then had to be completed in southern California, you and your associates California, you and your associates handled the details seamlessly. handled the details seamlessly.

She received funding directly to her She received funding directly to her bank account right on schedule and bank account right on schedule and with these monthly installments her with these monthly installments her care and security are guaranteed. care and security are guaranteed.

Thank you again,Thank you again,

David R.David R.

My home, un-mortgaged, was 38 years My home, un-mortgaged, was 38 years old and in need of some upgrading. old and in need of some upgrading. At 77, I was in need of some financial At 77, I was in need of some financial upgrading. The Reverse Mortgage upgrading. The Reverse Mortgage appeared to fit my situation and after appeared to fit my situation and after reviewing three proposals I chose Ken reviewing three proposals I chose Ken Metcalf.Metcalf.

My experience with Ken wasMy experience with Ken was

very professional and everything very professional and everything clearly explained and every question clearly explained and every question answered. I chose a line of credit and answered. I chose a line of credit and a modest monthly cash withdraw. I a modest monthly cash withdraw. I have used the credit line to modernize have used the credit line to modernize the master bathroom, install insulated the master bathroom, install insulated windows and replace the 38 year –old windows and replace the 38 year –old furnace and A/C units.furnace and A/C units.

My monthly statement clearly defines My monthly statement clearly defines where every dollar iswhere every dollar is

accounted for-loan balance, current accounted for-loan balance, current interest, credit line balance and the interest, credit line balance and the monthly increase in my net monthly increase in my net principal limit.principal limit.I am a happy client of Ken and I am a happy client of Ken and would recommend him to anyone would recommend him to anyone thinking about a Reverse Mortgage.thinking about a Reverse Mortgage.

Robert C.Robert C.

KenKen

My wife and I applied for a reverse My wife and I applied for a reverse mortgage May of 2003. It was the best move mortgage May of 2003. It was the best move we ever made. My wife is 81 and I am 82. we ever made. My wife is 81 and I am 82. We found that our fixed income was We found that our fixed income was falling a little short of meeting with our falling a little short of meeting with our financial needs and that our savings would financial needs and that our savings would be depleted in a short time if we did not be depleted in a short time if we did not figure a way to bring in some extra income. figure a way to bring in some extra income. We owned a home but was still making We owned a home but was still making payments on our home loan. payments on our home loan.

It only took a short length of time to It only took a short length of time to apply, have our home appraised and loan apply, have our home appraised and loan approved and we had the funds available. approved and we had the funds available. Now we not only are free of house Now we not only are free of house payments but have the financial freedom to payments but have the financial freedom to use the money in any way we desire, and use the money in any way we desire, and it’s tax free. it’s tax free.

So I say to my fellow senior 62 or over to So I say to my fellow senior 62 or over to go for the gusto and enjoy yourself, inquire go for the gusto and enjoy yourself, inquire into the Reverse Mortgage Program.into the Reverse Mortgage Program.

Thank you ever so much, Marty and RuthThank you ever so much, Marty and Ruth

Happy Holidays to All, who made Happy Holidays to All, who made my life so much easier. I am my life so much easier. I am enjoying the reverse mortgage and enjoying the reverse mortgage and bragging to all. bragging to all.

Thank you again!Thank you again!

Sylvia T.Sylvia T.