Jumbo Reverse Morgages

A Jumbo Reverse Mortgage

I shared in my previous post, that a new Reverse loan would be coming out as of today for those situations where the traditional FHA HECM  program won’t work for a property that has a large existing loan balance but a great deal of equity.

If a homeowner has a property valued well above the HUD lending limit of $625,250 but are paying on a large mortgage, most of the time the HECM will not work for their situation and they don’t qualify for the FHA loan program.

Now with the advent of these new Jumbo products, they will not have another option other than the FHA program.

Here is the second part of the article discussing the new mortgage.

Urban Releases More Detail on HomeSafe Jumbo Reverse Mortgage

Posted by Elizabeth Ecker 9/2/2014

“Now homeowners with significant value in their homes have a reverse mortgage option that may afford them more loan proceeds, and potentially a greater amount of cash up front, than a HECM product,” said UFA President Steve McClellan in a press release. “Ultimately, HomeSafe can give borrowers an opportunity to tap into more of that property value when they need it.”

Urban shared initial information regarding the launch last month, and is this week releasing additional loan information. The minimum age for a HomeSafe loan is 62, and while borrowers can use the proceeds however they so choose, UFA notes the loan may be well suited to extinguish existing mortgage debt, making home improvements,supplementing medical and home care coverage, or purchasing a new residence.”

I will share the remainder of the article in my next post, because it is quite long and too much to post here.

 

 

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Need More Money from a Reverse Mortgage?

Since my previous posts, additional Reverse loan lenders are planning on releasing their own proprietary reverse loans and although I don’t have much in the way of details as of yet, I will know more tomorrow after attending a webinar on it via UFA.

I am not exactly excited about the Jumbo loan as of yet, until I see the details and how much they may allow a homeowner to receive.   Previous Jumbo reverse loans were very conservative on the LTV ratio and I’m wondering if the newer ones will be any different.

Here is part of an article that discusses a few of the details on the Jumbo program from Urban Financial America, but at this time, I’m not hearing anything new in the description.   Just the standard qualifications as far as the age of the borrower and the various ways one can use the funds.

Urban Releases More Detail on HomeSafe Jumbo Reverse Mortgage
Posted By Elizabeth Ecker On September 2, 2014 @ 5:11 pm In American Advisors Group,Generation Mortgage,Jumbo Products,News,Reverse Mortgage,Urban Financial of America | No Comments

After announcing [1] in August it would enter the proprietary reverse mortgage market, Urban Financial of America this week released additional detail around its HomeSafe jumbo reverse mortgage, now available in four states.
The HomeSafe, which UFA is rolling out this week, offers borrowers with high valued homes the opportunity to borrow up to $2.25 million in loan proceeds—compared to the maximum lump sum option under the Federal Housing Administration’s Home Equity Conversion Mortgage (HECM) program of just shy of $470,000.

I will share the rest of this article in the next couple of days, as it’s too long for one post.

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