Line of Credit Allows Flexibility in Retirement Planning
Latest Addition Completes HomeSafe Suite of Offerings in Florida
SAN DIEGO–(BUSINESS WIRE)–Finance of America Reverse LLC (“FAR”), one of the largest reverse mortgage originators in the US and a leading provider of retirement loan products, today announced the launch of its HomeSafe® Select offering in Florida, the only proprietary reverse mortgage product in the US offering a line of credit. This latest launch rounds out availability of FAR’s full proprietary suite of products in Florida, joining the fixed-rate HomeSafe® Standard and breakthrough HomeSafe® Second. Florida ranks among the top five states utilizing the innovative HomeSafe® solution, and the demand for HomeSafe® Select has been building in anticipation of this launch.
HomeSafe® Select is a proprietary HELOC reverse mortgage loan offered exclusively by FAR and its approved partners. It is a non-FHA adjustable rate reverse mortgage that offers up to 75% of loan proceeds as an open-ended line of credit. Like all reverse mortgages, HomeSafe® Select is a non-recourse loan.
“As people evaluate how home equity fits into their retirement plans, they are increasingly choosing to only draw the funds they need initially and access the remainder through a line of credit. Doing so allows homeowners to protect their equity longer so that they have more options well into the future as their needs change. We are proud to remain at the forefront of the industry as the only provider of this type of proprietary financial tool, which represents a tremendous opportunity for suitable borrowers,” said Kristen Sieffert, president of FAR.
The HomeSafe® Select is the only proprietary reverse mortgage product in the US that offers a line of credit allowing the borrower the option to tap into and leverage part of their home equity while at the same time creating the flexibility to access additional funds as needed.
For example, with HomeSafe® Select, a 78-year old in Florida with a $1,000,000 home value and a $250,000 balance on the first mortgage may be able to receive $240,715 in proceeds after paying off the first mortgage, versus receiving approximately $185,000 with the HECM, and the borrower could choose to leave those proceeds in a line of credit. 1
“HomeSafe® Select is an attractive alternative to a HELOC particularly since there is no monthly mortgage payment required. Through this offering — and the industry’s most comprehensive suite of proprietary products — we are greatly enhancing options for borrowers in Florida, particularly in pockets of the state with a concentration of high-home values,” added Jonathan Scarpati, vice president of wholesale at FAR.
Additional Features of HomeSafe® Select include:
- Availability for properties valued up to $10,000,000
- Loan proceeds up to $4,000,000
- A draw period of 10 years
- No monthly mortgage payment required
- No monthly or annual mortgage insurance premium
- No pre-payment penalties
- No FHA approval required for condos valued over $500,000
- Open-end adjustable rate based on WSJ 3-month LIBOR index
HomeSafe® Select will be available through FAR’s retail and wholesale channels to borrowers in Florida which joins California as the only two states nationwide where this unique product is also available. FAR is actively working on bringing HomeSafe® Select to market in other key states with aims to launch a new offering within the next quarter.
Note to editors: demographics and home prices
The demographic attractiveness of older Americans and retirees in Florida are improving:
- There were 3.2 million people over the age of 65 in 2010 and that is projected to be 4.4 million by 2020, representing more than 20% of the overall population. 2
Moreover, Florida’s top 3 zip codes boast seven-figure median sale prices: 3
- Median sale prices in 2016 for the top three zip-codes in Miami-Dade County ranged from $904,500 – $3,400,000
- Median sale prices in 2016 for the top zip code in Lee County was $1,290,000
- Median sale prices in 2016 for the top zip code in Manatee County was $900,000
- Median sale prices in 2016 for the top zip code in Collier County was $848,000
About Finance of America Reverse LLC
As one of the largest reverse mortgage originators, Finance of America Reverse is committed to empowering adults age 62 and over with the tools they need to achieve financial independence and get to work on retirement. Through its network of Reverse Mortgage Specialists, professional and wholesale partners, Finance of America Reverse offers reverse mortgage products designed to help older Americans include home equity in their retirement plans. The company is licensed nationally and is a proud member of the National Reverse Mortgage Lenders Association (NRMLA). For more information, please visit www.fareverse.com or find us on Facebook, LinkedIn or Twitter.
This material is not from HUD or FHA and has not been approved by HUD or any government agency.
When the loan is due and payable, some or all of the equity in the property that is the subject of the reverse mortgage no longer belongs to borrowers, who may need to sell the home or otherwise repay the loan with interest from other proceeds. FAR may charge an origination fee, , closing costs and servicing fees (added to the balance of the loan). The balance of the loan grows over time and FAR charges interest on the balance. Borrowers are responsible for paying property taxes, homeowner’s insurance, maintenance, and related taxes (which may be substantial). We do not establish an escrow account for disbursements of these payments. A set-aside account can be set up to pay taxes and insurance and may be required in some cases. Borrowers must occupy home as their primary residence and pay for ongoing maintenance; otherwise the loan becomes due and payable. The loan also becomes due and payable (and the property may be subject to a tax lien, other encumbrance, or foreclosure) when the last borrower, or eligible non-borrowing surviving spouse, dies, sells the home, permanently moves out, defaults on taxes, insurance payments, or maintenance, or does not otherwise comply with the loan terms. Interest is not tax-deductible until the loan is partially or fully repaid.
Finance of America Reverse LLC NMLS #2285 (www.nmlsconsumeraccess.org); Corporate Office: 8023 East 63rd Place, Suite 700, Tulsa, OK 74133; Arizona Mortgage Bankers License #0921300, Mortgage Bankers Branch License #0117862 – 625 West Southern Ave., Suite E171, Mesa AZ 85210; Licensed by the California Department of Business Oversight under the California Residential Mortgage Lending Act ; Licensed under the California Department of Business Oversight under the California Finance Lenders Law; Colorado: To check the status of your Colorado loan originator, visit http://www.dora.state.co.us/real-estate/index.htm; Georgia Residential Mortgage Licensee #23647, 8023 East 63rd Place, Suite 700, Tulsa, OK 74133; Illinois Residential Mortgage License #MB6759657; Kansas Licensed Mortgage Company #MC0002210; Massachusetts Lender/Broker License MC2285: Finance of America Reverse LLC; Licensed by the Mississippi Department of Banking and Consumer Finance; Licensed by the Missouri Division of Finance as a Mortgage Broker, 1201 Walnut, Suite 975, Kansas City, MO 64106; Licensed Mortgage Banker – NYS Department of Financial Services, 888 Veterans Memorial Highway, Suite 300, Hauppauge, NY 11788. Finance of America Reverse LLC is known as FAReverse LLC in NY in lieu of true name Finance of America Reverse LLC. Licensed by the New Hampshire Banking Department; Oregon License #ML-4805; Nevada Mortgage Banker License #4297. 2300 West Sahara Ave, Ste 800, #835, Las Vegas, NV 89102, 702-592-6538; Licensed by the New Jersey Department of Banking and Insurance; Licensed by the Pennsylvania Department of Banking; Rhode Island Licensed Lender; Licensed By the Virginia State Corporation Commission #MC-5413; Washington Consumer Loan Company License #50202. Also conduct business in AL, AR, CT, FL, HI, ID, IN, KY, LA, ME, MD, MI, NE, NM, NC, OH, OK, PR, SC, TN, TX, UT, VT, WV, WI, and WY. Not all products and options are available in all states. Terms subject to change without notice. ©2018 Finance of America Reverse LLC. All Rights Reserved. EQUAL HOUSING LENDER.
This assumes a loan with a principal limit of $508,000, and a variable-rate initial APR of 5.811%. The rate may change quarterly up to a maximum lifetime APR of 8.811%. Loan origination fee of $6,000, and remaining loan fees of approximately $11,285. Monthly loan servicing fee of $30. Terms may vary and conditions apply.
Sloane & Co
Lindsey Allumbaugh, Brandon Cox