YOUR HOME, YOUR GREATEST ASSET
For many retirees, home equity is one of their greatest assets. Homeowners age 60 or older with higher-end properties have turned to proprietary “jumbo” reverse mortgages to unlock their housing wealth and for a variety of reasons. The majority of reverse mortgages available today are Home Equity Conversion Mortgages (HECM) which are insured by the Federal Housing Administration. The maximum lending limit for the FHA HECM is $1,089,300. While many retirees have utilized these products, conventional HECMs are not appropriate for particularly high-end homes simply because they do not yield enough cash from the existing equity.
Here are three reasons to CONSIDER a jumbo reverse mortgage.
1. Your can access more of your equity.
FHA insures HECM reverse mortgages on properties valued up to $1,089,300 so the maximum amount of loan proceeds you may be eligible to receive from a HECM is capped. If your home exceeds the $1,089,300 lending limit, you may be better served by a “jumbo” reverse mortgage loan with lending limits up to $4,000,000. These "jumbo" loans have the same non-recourse protection as the FHA HECM.
2. No FHA mortgage insurance.
What's the best part about jumbo reverse mortgages? NO up-front mortgage insurance premium! Proprietary jumbo reverse mortgages, which are not FHA insured, are privately insured by the companies that offer them. These products are often called “jumbo” loans because they allow borrowers to access significantly higher loan amounts compared to traditional HECM reverse mortgages.
3. Condominium approval process easier.
A unique distinction of HOME SAFE jumbo reverse mortgages is that condos do not require FHA approval which allows them to be potentially eligible for the HOME SAFE jumbo loan. Also, for both FHA HECM and Home Safe, the single unit condo process can receive condo approved as a single unit rather than demanding the entire condominium project be approved.
Note: If there is an underage spouse, a non-borrower, and you want to do a proprietary jumbo reverse mortgage, please note that non-borrowing spouses are not afforded the protection with the as under the FHA HECM program.
4. The condo's next step in the reverse mortgage approval process:
The condo will be required to provide documentation so your unit can be approved with the lender. The homeowner must live in the property as their principal residence and continue to pay property charges including property taxes, homeowner's insurance, condo fees, and maintain the home.
Caveats to the reverse mortgage jumbo:
*Higher interest rates *stricter financial assessment requirements, no non-borrower protection at present.
*** For info on the HECM line of credit that increases year after year, click below. This is the FHA HECM with lending limit of $1,,089,300.
888-843-9797 or 631-804-9044
HomeSafe® for Purchase may help homeowners with three important goals:
HomeSafe® for Purchase Solution
Prior to 2008, many retired homeowners wishing to relocate had to purchase their new home using traditional financing, live in it for a certain amount of time, and then they'd refinance with a reverse mortgage later. The HomeSafe® for Purchase makes it easier for retired homeowners to relocate. Now, the HomeSafe® for Purchase can be used to purchase a primary residence and have the lender finance part of the purchase, all with no monthly mortgage payments. This allows homebuyers age 60 and above to purchase a home and obtain a reverse mortgage in one transaction.
The HomeSafe® for Purchase is an ideal reverse mortgage product for senior borrowers who are looking to relocate. It allows borrowers to purchase a higher value home all with no monthly mortgage payments. The HomeSafe® JUMBO Reverse Mortgage has a maximum loan amount of $4,000,000 and covers homes valued up to $10,000,000 for purchases or refinances.
The HomeSafe® reverse mortgage is a non-recourse loan for which the borrower or their heirs have no personal liability for repayment of the loan and can never owe more than the loan amount or the appraised value, whichever is lower.
NOTE: YOU MUST MOVE INTO THE PROPERTY WITHIN 60 DAYS.
Preparing for Your Reverse Mortgage Financial Assessment
Have you decided that you are ready to apply for a reverse mortgage? Before you complete your application, you will first you will need to take a few preliminary steps beginning with a mandatory financial assessment to make sure you are financially able to meet your loan obligations.
To get ready for the financial assessment, you should first speak to a reverse mortgage lender to learn how the assessment will be conducted. Even though a loan officer will conduct an assessment and ask you questions about your tax history, credit and debt payment history, and run your credit, it is the job of the lender to review your application file once submitted and make the final decision as to your financial fitness and approve, suspend, or deny your loan.
Gathering the paperwork
To move the process along, it’s helpful to gather all of the proper documents:
All reverse mortgage borrowers are required to pay property taxes, insurance on the home, and various other expenses for the upkeep of their home. The assessment determines a borrowers willingness and capacity to fulfill their obligations on the loan.
Safety through the Reverse Mortgage financial assessment.
The financial assessment is a safety measure in the borrower’s best interest. The assessment and documentation required of borrowers helps ensure the borrower does not end up in a poor financial situation as a result of the reverse mortgage loan.
You can receive free information resources and read them at your leisure. Simply call the numbers below.(All jumbo / proprietary reverse mortgages are arranged through third party providers.)
Questions? Call Advisors Mortgage! Advisors Mortgage: 888-843-9797 or 631-804-9044
ADVISORS MORTGAGE GROUP, LLC., WE TAILOR LOANS TO MEET YOUR NEEDS -Branch NMLS 1833015, 3265 Merrick Road, Wantagh, NY 11793 - Phone: 888-843-9797 or direct: 631-804-9044 - Licensing: CA: Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act; FL; GA Residential Mortgage Licensee; NJ: Licensed by the New Jersey Department of Banking and Insurance; Licensed Mortgage Banker –OH; PA; TX. www.nmlsconsumeraccess.org