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Reverse Mortgage - Essentially a Housing Put!

How many of you would have loved to have had an affordable means of effectively purchasing a Put Option on your primary residence insured by FHA, prior or even during the housing crisis? This is what a reverse mortgage provides for eligible homeowners. It's a very attractive form of diversification as well for people that have significant equity in their homes. It will allow you to liquefy a portion of your home equity and supplement retirement income at the same time while locking in your home value benefit level.

What does this mean for an eligible home owner? If your property increases in value, you still own your home so you now have more equity. However, if your home declines in value significantly, as it did for many during the crisis, or if your cumulative equity withdrawals exceed your homes value at a point in the future, it is to the lesser extent not your problem. The benefit level of your reverse is locked in, effectively providing you a put on your real estate. As long as it is your primary residence, a homeowner will continue to receive all the benefits a Reverse Mortgage offers regardless of actual remaining home equity.

I am eager to help all advisors that are interested open new horizons with the understanding of reverse mortgages and how they can provide long term benefits and stability for their clients and their families.

George H. Omilan


NMLS# 873983

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