Despite the New Homebuyer’s Tax credit being available to reverse mortgage borrowers, several lenders tell RMD that it has yet to have an effect on their HECM for purchase business.
Derry Hampton, a reverse mortgage professional with Security 1 Lending told RMD it has not been effective in the reverse mortgage industry because, “the senior homebuyer isn’t looking so much for a first-time tax credit. They’re looking more to get settled for the rest of their life and get settled in a better manner.”
As such, a senior who has not owned a home is unlikely to choose to purchase a new one. If they do choose to do so, a tax credit is unlikely to be their motivation.
But Monte Howard, Affinity Relationship Director at Generation Mortgage Company Howard disagrees. He thinks that the tax credit for homeowners seeking to trade up is, “a pretty compelling story.” Howard called the tax credits “something worth talking about because it will get people’s attention.”
But he noted that while some people are talking about the tax credits, no one’s banking their marketing on it. He counters that the tax credit gets people’s attention and may be a good way to get realtors to stop and listen.
Write to Reva Minkoff