Helpful Information ~ Reverse Mortgage Long Island.com

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 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 (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 $1,089,300--
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. (Of course, it's based on age and interest rates). If your home exceeds the $1,089,300 lending limit, you may be better served by a “jumbo” reverse mortgage loan.

2. You can access more funds.
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. The best part? There is NO up-front or ongoing mortgage insurance premium as these are not FHA loans!

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 for your unit. 

How to Qualify for a HOME SAFE 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. 

HomeSafe® for Purchase – Right-Size Your Home for Retirement

The HomeSafe® for Purchase is ideal 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.   

HomeSafe® for Purchase - A Great Solution

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. 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:

1. Many want to RELOCATE to be closer to family members
2. Many need to DOWNSIZE to homes that match their needs
3. Many want to UPSIZE to their dream home for retirement

The HomeSafe is a non-recourse loan and the borrower or their heirs have no personal liability for repayment of the loan.  They can never owe more than the house is worth. There are no prepayment penalties  Note: Reverse purchase borrowers are required to move into the property within 60 days of closing.