Reverse and Retirement Mortgage Options

HECM

The Home Equity Conversion Mortgage, or HECM, can be used to convert the equity your borrower has built in their home into monthly income or a line of credit. The HECM is the only reverse mortgage product insured by the Federal Housing Administration. To qualify, homeowners must be 62 or older, have significant equity (or own their homes outright), and receive HECM counseling from a HUD-approved counseling agency. For 2021, the HECM loan limit is . There’s also a HECM for Purchase loan to help your borrowers buy a home.

Key features:

  • Fixed (lump-sum payment) and adjustable-rate options available
  • Adjustable-rate HECMs come with five different disbursement options: line of credit, term, tenure, modified term, or modified tenure
  • An eligible non-borrowing spouse (as defined by the FHA) can continue living in the home after the primary borrower passes away or moves out as long as the home is maintained, and the ongoing expenses are paid

HomeSafe®

Finance of America Mortgage TPO offers HomeSafe®, a proprietary reverse mortgage* that allows your borrowers to unlock their home’s financial power to help fund their retirement. HomeSafe is a loan that can effectively free up cash without increasing your borrower’s monthly obligations, allowing them to pay bills, travel, help family members, or retire with confidence.  Your borrowers can also use HomeSafe to purchase a new home.

Key features:

  • Provides loan amounts higher than a HECM, up to $4,000,000
  • No monthly mortgage insurance premiums (MIP)
  • Competitive interest rates
  • Fees can be rolled into the loan with minimal or no out-of-pocket costs (except for purchase)

* The HomeSafe reverse mortgage is a proprietary product of Finance of America Reverse LLC and is not affiliated with the Home Equity Conversion Mortgage (HECM) program. Not all HomeSafe products are available in every state.

 

EquityAvail™

EquityAvail™ is a unique refinancing option* that frees up cash every month — without the need for downsizing or being locked into a traditional 30-year mortgage. It allows your borrowers who are age 60 or older to refinance their existing mortgage and significantly lower monthly mortgage payments for 10 years, then eliminate monthly mortgage payments entirely. Currently, this product is available to residents in California, Florida, New Jersey, or Virginia (other states are coming soon).

Key features:

  • Significantly reduces (and ultimately eliminates) monthly mortgage payments and frees up cash flow
  • Fixed-rate loan with partial interest-only payments for 10 years
  • Potentially provides a lump-sum cash payout on closing day

 

* EquityAvail is a proprietary product of Finance of America Reverse LLC and is not affiliated with the Home Equity Conversion Mortgage (HECM) program. EquityAvail is not yet available in every state.

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