What is EquityAvail™?
EquityAvail is a revolutionary retirement mortgage that allows people in or nearing retirement to significantly lower their mortgage payments for 10 years, and then eliminate the need to make monthly mortgage payments altogether*. It is a single, fixed-rate mortgage with partial interest payments required for this initial 10 year period after which no monthly mortgage payments are required as long as the borrower lives in their home as a primary residence, stays current on taxes and insurance, and otherwise upholds the terms of the loan. The loan is fully disbursed at closing with a maximum loan amount of up to $4 million dollars.
When is the loan balance due?
When the homeowner dies, sells the house, or it ceases to serve as their primary residence, the loan balance is due and payable. Importantly, the loan is a nonrecourse loan, meaning that the lender may enforce the loan payment obligations only against the property. Also, because the loan is simply a lien on the house, title still passes to the estate. The heirs would have the option to pay off the loan and keep the house.
Where is EquityAvail available?
EquityAvail is currently available in AZ, CA, CT, FL, GA, NJ, NV, SC, TX, and VA.
Who is eligible for EquityAvail?
EquityAvail is for people 55+ who own and occupy their home as their primary residence, who have an existing forward mortgage, and who would be short to close on a reverse mortgage.
How is EquityAvail different than a reverse or traditional mortgage?
EquityAvail combines the advantages of both traditional mortgages and reverse mortgages. It begins with 10 years of monthly mortgage payments, and then mirrors a reverse mortgage by eliminating the monthly mortgage requirement for the remaining life of the loan. The borrower is responsible for all property tax and insurance obligations.
Are escrow accounts available for EquityAvail?
Yes, escrow accounts will be required. A customer may request to remove their escrow account after five years.
What property types are eligible for EquityAvail?
The following property types are eligible:
– Existing Single Family Residence
– 2-4 units
Am I required to live in my home to obtain EquityAvail?
Yes, you are required to live in your home as the primary residence to obtain and remain qualified for EquityAvail
Is there a required minimum or maximum home value?
There is no minimum home value for EquityAvail, only a minimum loan amount of $100,000. The maximum lending limit is $4,000,000 although the home value may exceed the lending limit.
Is there a required minimum loan amount?
The minimum loan amount for EquityAvail is $100,000.
How are loan proceeds paid?
The proceeds are paid in a lump sum at closing. The lump sum payout is based on the maximum principal limit and home value minus any mortgage payoffs and closing costs.
Do you require a home appraisal?
We require home appraisals before the loan is approved. One appraisal is required for properties valued under $2,000,000. Two appraisals are required for properties valued over $2,000,000, the lower of the two values will be used. FAR covers the cost of the second report.
Do you charge origination fees?
There is no origination fee for the EquityAvail retirement mortgage.
Do you require a Mortgage Insurance Premium?
No, there is no monthly or annual Mortgage Insurance Premium.
Are debt payoffs allowed?
Yes, you are allowed to pay off debts such as liens against the property, credit card debts, installment loans, and judgment and other liens shown on the borrower’s credit report and/or title commitment. Any revolving debt that is being paid off to meet residual income requirements must be closed from further use.
Is my spouse included on the loan?
If your spouse is on the title, they will need to be listed as a co-borrower and co-mortgagor. If your spouse is not both on title and a co-borrower on the loan, it is important to know that upon your death or failure to occupy the property as your principal residence, your EquityAvail Loan will become due and payable. For that reason, borrowers with a non-borrowing spouse should strongly consider the HECM program.
Does EquityAvail allow repair set-asides?
No, EquityAvail does not allow repair set-asides.
Are pre-payments allowed? Are there any penalties to pre-pay?
Prepayments are allowed. There is no prepayment penalty.
Am I allowed to refinance my HECM or HomeSafe loan?
You cannot refinance your HECM or HomeSafe loan for EquityAvail.
What other solutions, products, or services like EquityAvail are available?
EquityAvail is currently the only product of its kind in today’s market. Contact us or call 855.421.4745 for more information.
How do I learn more or apply for EquityAvail?
Contact us or call 855.421.4745 for more information.