Many older homeowners and homebuyers age 62+ use reverse mortgages as a financial tool to gain more financial flexibility. But there’s also an option for homeowners and homebuyers as young as age 55!*
At RMF, we offer an innovative line up of Equity Elite® products to help you write more business than the HECM alone. If you have clients age 55 or older in select states* that own or are planning to purchase a home, Equity Elite® may allow them to tap into more of their home's equity, sooner rather than later, and with lower upfront costs.
Big benefits for you and your clients
A larger pool of borrowers. Designed for customers as young as age 55 in select states means more eligible loan candidates.
Increased market size. Eligibility expands to non-FHA-approved condos, including age-restricted communities, so you can grow the condominium market up to three times the HECM program.
More savings for more clients. No upfront mortgage insurance premiums mean lower costs, making this option attractive to more clients on a fixed income.
Not just jumbo amounts. Borrowers are eligible for loan amounts from as little as $50K up to $4MM† to free up more home equity to help clients retire comfortably.
An attractive alternative to a traditional HELOC. The Equity Elite® Line of Credit offers a reusable line of credit that grows at 1.5% annually for seven years and no pre-defined loan maturity date. There’s no prepayment penalty, more lenient income qualifications and a lifetime interest cap 5% over the initial rate.
Research shows that broadening eligibility to borrowers age 55+ increases market opportunity by 2.7 million eligible households! Take your business to the next level with a propriety product like no other. Get started by reaching out to your Account Executive.
*Available to borrowers as young as 55 in select states only. Higher minimum age requirements may apply. For the Equity Elite (EE) loan option with a growth rate on a line of credit, there is a specific growth rate, such as 1.5% per annum (compounded monthly) applied to certain unused amounts, and a growth rate period, such as 7 years after the loan closes, as stated in the loan documents provided at closing. Also, the line of credit cannot exceed: (1) 75% percent of the original Principal Limit, plus (2) the growth of the available Principal Limit due to the growth rate.
†Not applicable in all states; MA imposes a maximum loan amount of $2MM.
This material has not been reviewed, approved or issued by HUD, FHA or any government agency. The company is not affiliated with or acting on behalf of or at the direction of HUD/FHA or any other government agency.
Equity Elite Reverse Mortgage (“Equity Elite”) is Reverse Mortgage Funding LLC’s proprietary loan program, and it is not affiliated with the Home Equity Conversion Mortgage (HECM) loan program, which is insured by FHA. Equity Elite is available to qualified borrowers who also may be eligible for FHA’s HECM program or are seeking loan proceeds that are higher than FHA’s HECM program limit. Equity Elite currently is available only for eligible properties in select states. Please contact your loan originator to see if it is currently available in your state.
Upon a maturity event, any non-borrowing individuals with an ownership interest in the property, including non-borrowing spouses, will have a short period of time (for example, 30 days from a due and payable letter or an alternate time specified by the loan servicer if extensions are available under the circumstances) to purchase the property from the estate or, if the non-borrower inherits the property, pay the loan in full using any sources of funds available to them. Any non-borrowing individual, including a non-borrowing spouse, should have a plan to pay off an Equity Elite reverse mortgage upon the borrower’s death or any other maturity event. If the non-borrower is unwilling or unable to purchase the property or pay the loan in full, there is no protection for the non-borrower (including a non-borrower spouse) to maintain an interest in the home or to continue residing in the home past the maturity event and the non-borrower may be evicted upon foreclosure. The FHA HECM program has protections in place for certain non-borrowing parties, so a reverse mortgage applicant with certain non-borrowing parties should strongly consider a FHA-insured HECM loan (see HECM guidelines or ask an RMF representative for details). Under the Equity Elite reverse mortgage loan program, a maturity and/or default event occurs when the last surviving borrower no longer lives in the home as his or her primary residence for at least 12 months, the property charges (including taxes, insurance, or any other property charges) are not paid, required repairs are not completed or the property is not maintained, or any other maturity and/or default event, as specified in the Security Instrument, occurs. L4757_082023