Just a few years back, people 62 and over had more than a dozen reverse mortgage products to choose from. With the burst of the real estate bubble and the contraction of the market, their options became much more limited, but now homeowners have a new choice.
HomeSafe is a Jumbo Reverse Mortgage that offers a new option targeted at people age 62 and older who either own a home or are looking to buy one of higher value. HomeSafe is currently available in California, Florida, Hawaii and New Jersey with more states being added in the future.
HomeSafe offers a reverse mortgage for loan amounts of up to $2.25 million. This is a higher loan amount than that offered by an FHA insured reverse mortgage and there are several other major advantages to the program.
There is no mortgage insurance premium.
There is no origination fee.
There is no initial disbursement limitation, so you can take the full amount that you qualify for at closing.
HomeSafe is available for condominiums that appraise at $500,000 or more without FHA approval.
HomeSafe offers competitive fixed-rate interest on the draw of a lump sum.
The proceeds may be taken in a variety of ways:
- Pay off existing mortgage debt to eliminate monthly payments and improve cash flow.
- Buy a house or condo in an upscale area or active lifestyle community.
- Pay for home improvements.
- Cover medical or in-home care expenses
- Refinance existing reverse mortgage to access a larger pool of funds.
As more and more boomers are reaching retirement age with limited retirement savings, I expect the product selection for reverse mortgages to expand in response to their needs.
If you have a reverse mortgage question, call Angella Conrard at 866-949-7030. I will be happy to answer your questions and help you live your most comfortable life!
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