You may have heard of the benefits of a HECM (Home Equity Conversion Mortgage) reverse mortgage, but if you are an older homeowner with a high-valued home, you may be unaware that there is there a specific reverse mortgage, the HomeSafe® jumbo reverse mortgage, geared for your situation.
With the highest percentage of people aged 65 or older of any state1, a move to or within Florida may be among your long-term plans. Or perhaps you already live in Florida and plan to stay there for the balmy weather, beaches and no state income taxes.
Particularly for homeowners in Florida, where property values have increased more than 9.5% over the past year according to online real estate hub Zillow2, this product is specially designed to help high-value homeowners tap into their home equity.
The HomeSafe Reverse Mortgage
For homeowners 60* or older, the HomeSafe® reverse mortgage, offered by Finance of America Reverse (FAR) LLC, is one of the few jumbo reverse products available to and potentially more applicable, for eligible borrowers who own a property that is valued at $1 million or more.
FAR HomeSafe advantages over traditional HECMs:
- Loan amounts of up to $2.25 million, significantly higher than a HECM allows;
- No mortgage insurance premium;
- No initial disbursement limitation – borrowers take the full amount at closing.
Retirees living in condominiums may also take advantage of reverse mortgages, however, not all condos have the FHA-approval required for HECM financing. A unique distinction of jumbo reverse mortgages is that condos appraised at $500,000 or more do not require FHA approval, which allows potential eligibility for a HomeSafe jumbo loan.
HomeSafe borrowers have used this loan for many purposes: To pay off an existing mortgage and have no more monthly mortgage payments;* have funds for healthcare needs; to protect retirement investments by allowing the borrower to delay selling during a market downturn, and more.
If you are a Florida resident interested in using a HomeSafe reverse mortgage to tap into your home equity, please contact us to learn more. We can run a no-obligation scenario so you can decide if our jumbo loan might be a good fit for you.
*For certain HomeSafe® products only, excluding Texas and Utah where the minimum age is 62.
*The borrower meets all loan obligations, including living in the property as the principal residence and paying property charges, including property taxes, fees, hazard insurance. The borrower must maintain the home. If the homeowner does not meet these loan obligations, then the loan will need to be repaid.
1 Nicholas Nehamas, “Six reasons why Florida is the best place to retire,” Miami Herald, Business, January 25, 2016. http://www.miamiherald.com/news/business/article56456770.html
2 Zillow Home Value Index. “Florida Home Prices & Values,” Data through May 31, 2017. https://www.zillow.com/fl/home-values/
This article is intended for general informational and educational purposes only, and should not be construed as financial or tax advice. For more information about whether a reverse mortgage may be right for you, you should consult an independent financial advisor. For tax advice, please consult a tax professional.