Proprietary product offers opportunity for consumers to access more loan proceeds
than with a traditional reverse mortgage
Now available for homeowners in high home value states of California, Florida, Hawaii and New Jersey
TULSA, OK (September 2, 2014) — Finance of America Reverse LLC (FAR), one of the top lenders of reverse mortgages in the United States, today introduced its HomeSafe® proprietary reverse mortgage. Through HomeSafe®, loan proceeds of up to $2.25 million are available, compared to traditional reverse mortgages or Home Equity Conversion Loans (HECMs), which currently have legislated maximum available loan proceeds of $469,125.
“Now homeowners with significant value in their homes have a reverse mortgage option that may afford them more loan proceeds, and potentially a greater amount of cash up front, than a HECM product. Ultimately, HomeSafe® can give borrowers an opportunity to tap into more of that property value when they need it,” said Steve McClellan, President of FAR.
As with traditional reverse mortgages or HECMs, HomeSafe® can be used by homeowners or homebuyers age 62 and older to leverage home equity for long-term retirement planning. While borrowers can use the proceeds however they choose, HomeSafe® may be well suited to extinguishing existing mortgage debt, making improvements or modifications to the home to accommodate changing needs, supplementing medical and in-home care coverage, or buying a home.
However, unlike HECMs, HomeSafe® does not carry a required mortgage insurance premium, removing a significant cost. It also is more flexible than a HECM. For purchase transactions, seller concessions and lender credits are allowed. And condominiums valued at over $500,000 do not have to be FHA-approved for the owners to use this product, unlike HECMs—which can be important for homeowners living in or wanting to buy into higher-priced condo or active adult communities. Finally, the full amount of the loan value is available at closing.
“FAR has been a trusted resource for traditional HECM reverse mortgages for more than a decade,” McClellan said. “With HomeSafe®, now we can meet the needs of even more consumers through a compelling and competitive proprietary reverse mortgage product.”
FAR plans to roll out HomeSafe® to additional states. The company is licensed in 45 states and Puerto Rico.
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About Finance of America Reverse LLC (FAR)
Integrity, knowledge, and a focus on making the reverse mortgage process as simple as possible: that’s what Finance of America Reverse LLC, or FAR, is all about. Founded in 2003, the company is ranked among the top reverse mortgage lenders in the United States; it has been the nation’s number-one wholesale reverse mortgage originator since December 2011, based on trailing 12 months’ endorsement volume.1 FAR’s retail and wholesale divisions are licensed in most states and Puerto Rico. FAR is a proud member of the National Reverse Mortgages Lenders Association (NRMLA), which works to strengthen and safeguard reverse mortgages, and the National Aging in Place Council (NAIPC).
1Source: Reverse Market Insight
FAR135 [Exp 08/2015]