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The proprietary JUMBO Reverse Mortgage program called HOME SAFE has a minimum home value starting at $500,000. The maximum loan amount is $4,000,000 and covers homes valued up to $10,000,000. This is an incredible program for higher-value homes as it enables borrowers to tap into more of their home equity.
For many retirees, home equity or housing wealth is one of their greatest assets. Homeowners age 62 and above with high-end properties have turned to proprietary “jumbo” reverse mortgages to unlock this valuable source of housing wealth and for a variety of reasons.
The majority of reverse mortgages available on the market today are Home Equity Conversion Mortgages (FHA HECM), which are insured by the Federal Housing Administration. While many American retirees have successfully utilized these products, conventional HECMs are not always practical for high-end homes.
Here are three reasons to CONSIDER a jumbo reverse mortgage.
1. Your home value is greater than $1,149,825.
FHA insures HECM reverse mortgages on properties valued up to $1,149,825 so the maximum amount of loan proceeds you may be eligible to receive from a HECM is capped. (Of course, it's based on age and interest rates). If your home exceeds the $1,148,825 lending limit, you may be better served by a “jumbo” reverse mortgage loan.
2. You can access more funds.
Proprietary jumbo reverse mortgages 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. The best part? There is NO up-front or ongoing mortgage insurance premium as these are not FHA loans! This means significant savings in closing costs.
3. You may tap into your equity if you reside in a condo.
Retirees living in condominiums may also take advantage of reverse mortgages. Borrowers with condos may receive single-unit approval rather than the entire condo applying for approval. Your condo will be required to complete paperwork and submit documents in order to obtain condo approval from the lender for your unit.
How to Qualify for a HomeSafe® Jumbo Reverse Mortgage:
* The homeowner must live in the property as their principal residence at least 6 months per year and continue to pay property charges including property taxes, homeowner's insurance, HOA fees, and maintain their home.
* Much like the HECM program, the jumbo reverse mortgage has several safeguards in place to protect borrowers. One safeguard is reverse mortgage counseling which is required so that borrowers understand the program as well as their obligations on the loan.
* Borrowers are required to undergo a financial assessment to ensure their ability to pay property charges and have adequate funds left each month after expenses.
The HomeSafe® for Purchase-A Great Solution - This program is perfect for homeowners who are looking to relocate or right-size to a new home. It allows borrowers to increase their purchasing power while moving to a home that requires no monthly mortgage payments.
A HomeSafe® for Purchase may be used to purchase a primary residence without having to waste the cash flow associated with traditional financing. This allows home buyers age 62+ to purchase a home and obtain a reverse mortgage in a single transaction. If selling their current home to purchase a new one, they can put down less money on the new home and retain a portion of the sale money! The HomeSafe® for Purchase can eliminate costs, hassle, and time and makes it easier for retired homeowners to relocate. It also increases the buyer’s purchasing power by allowing the lender to finance a portion of the sales price! HomeSafe® for Purchase helps homeowners with these goals:
The HomeSafe® is a non-recourse loan, and the borrower as well as their heirs have no personal liability for repayment of the loan. a) The house stands for the debt. b) The home alone is the only collateral used for the reverse mortgage debt as the debt is limited to the property itself. c) Borrowers can never owe more than the house is worth. This information is contained in the reverse mortgage note.
NOTE: With the reverse mortgage proprietary purchase, borrowers are required to move into the property within 60 days of closing.
What are the steps to getting a Reverse Mortgage? 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, speak to a reverse mortgage specialist to learn how the assessment will be conducted and what is required of you.
Gathering the paperwork
To move the process along, it’s helpful to gather all of the proper documents together in one place. Online applications can be used for signing or an in-person signing. Here's what you will need:
For answers on the most frequently asked questions about reverse mortgages, click below or call:
888-843-9797 or 631-804-9044
Safety through financial assessment
Lenders who do reverse mortgages will follow the same Financial Assessment qualifications on Jumbo Reverse Mortgages as with the FHA HECM product. There must be a certain amount of residual income left for borrowers to access for their needs after their monthly expenses are paid (property charges such as taxes, home insurance, HOA fees, flood insurance where applicable, and monthly expenses on a credit report).
The financial assessment is a safety measure which serves the borrower’s interest. Because borrowers are still required to pay property taxes, insurance, HOA fees, and various other payments that apply to their home, the assessment and documentation helps ensure that borrowers do not end up in a poor financial situation as a result of the loan.
The jumbo reverse mortgage proposal is a free, no obligation proposal. Note: All jumbo and commercial loans are arranged through third party providers.
What information is required to provide a reverse mortgage proposal?