Finance of America Reverse LLC (FAR), a leading provider of retirement loan products and education, announced that it has launched HomeSafe Second, the first-ever second lien reverse mortgage and the latest addition to FARs proprietary HomeSafe suite of products.
HomeSafe Second enables borrowers to benefit from a lower average cost of funds by leaving an existing low-rate first mortgage in place while leveraging HomeSafe Second to access additional funds with no additional monthly payment. With HomeSafe Second, homeowners can maintain their equity position and protect against interest rate volatility with the products fixed-rate, non-recourse features.
We know that home equity is a critical piece of a retirement planning strategy, said Kristen Sieffert, president, Finance of America Reverse. We also understand that reverse mortgages may not be the first tool people over 62 reach for when considering how to integrate this important asset into their wealth management plans. Now, they can have the flexibility of access to additional funds and the protection of a reverse mortgage without giving up the choice to leave existing financing with low rates in place.
Additional Features of HomeSafe Second include:
- Availability for properties valued up to $10,000,000
- Loan proceeds up to $4,000,000
- Ability to leverage loan proceeds to repay other debt (excluding the first mortgage)
- No monthly or annual mortgage insurance premium
- No pre-payment penalties
- No FHA approval required for condos valued over $500,000
HomeSafe Second is available through FARs retail and wholesale channels to borrowers in California, Florida and Texas, with additional states expected in the coming months.
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 in 48 states 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.
*Figure from Q4 NRMLA/RiskSpan Reverse Mortgage Market Index
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, mortgage insurance premium, 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, homeowners 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.