fixed rate jumbo reverse loans
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.
It’s been quite some time since any investors expressed interest in the possibility of a Reverse loan that met the needs of “high end” properties, where the government insured FHA loan could not provide a benefit.
Generation Mortgage continued to offer their Jumbo program during the mortgage and Real Estate crash, but I personally found that whenever I needed a Jumbo quote, they never “penciled out”, usually due to a large mortgage on the existing property and very conservative loan-to-value ratios.
However, Urban Financial of America is rolling out the first new Jumbo program, effective September 2nd. and since their announcement, two other Reverse loan lenders are following suit.
As of this writing, I have no details on any of the programs, other than Urban’s will be a Fixed rate and allow more funds at the close of escrow than on the program offered by Generation Mortgage.
I assume that things are going to become very interesting among the lenders and very competitive. Which in the end benefits the borrower.
I will share the article in subsequent posts on this site and any additional details about the rates and fees as soon as I know more about them.