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. 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.
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. These are incredible parameters for high-value homes.
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 $822.375, so the maximum amount of loan proceeds you may be eligible to receive from a HECM is capped. If your home exceeds the $822,375 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 spot condo process can receive condo approved as a single unit rather than demanding the entire condominium project be approved.