An Exclusive Mortgage Solution for Homeowners as Young as Age 55!



To help you gain a more competitive edge in the market and write more business, we’ve extended eligibility for our Equity Elite® suite of products!


RMF research shows that broadening the eligibility to borrowers age 55+ in select states increases market opportunity by 2.7 million households today — that’s $848 billion in home value


So how does it differ from a traditional reverse mortgage loan? 


Younger borrowers

Reverse mortgages are no longer reserved for homeowners aged 62 and older. Equity Elite® offers reverse mortgages for borrowers age 55+ in select states.1


Additional housing options 

This loan is available to owners and buyers of non-FHA-approved condos and homes in age-restricted communities.2 


Access to more funds

With an Equity Elite® loan, borrowers can leverage more home equity, and have the potential to get approved for loan amounts up to $4 million.3


Lower upfront costs

Equity Elite® has no upfront or ongoing mortgage insurance premium, which can mean lower closing costs than a traditional reverse mortgage, saving clients money on the loan.


Call your Account Executive today to learn how you can expand your pool of qualified prospects! And don’t forget to ask about Equity Elite® ZERO, which offers a lender credit that may be applied to most closing costs.4  


1 Available to borrowers as young as 55 in select states only. Higher minimum age requirements may apply. Visit www.reversefunding.com/equity-elite for details.

2This 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

3 Not applicable in all states; MA imposes a maximum loan amount of $2MM. Visit www.reversefunding.com/equity-elite for details.

4 With this pricing option, borrower receives a lender credit covering nearly all closing costs. There is a non-refundable independent counseling fee of approximately $125 on average, which the borrower pays directly to the counseling agency. Terms and conditions apply. Not available in all states.


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.


Reverse Mortgage Not an Option for Some Clients? What About Their Parents?

Just because your clients may not be ready for a reverse mortgage doesn’t mean someone else in their life isn’t.  

 

Consider clients who are part of the “Sandwich Generation” — those juggling their family’s monthly expenses, saving for their children’s education, and preserving funds for their retirement portfolios.  Plus, they are simultaneously financially responsible for their aging parent(s), who may live on a limited income and might even be carrying debt into their retirement years.  

 

One source of relief can be an older loved one’s home equity. A reverse mortgage can be a practical solution to provide the older generation with needed funds and thereby alleviate the financial strain.

 

An untapped, and often overlooked, source of funds

Homeowners age 62 and older collectively own $10.19 trillion in home equity wealthAccording to the Center for Retirement Research at Boston College, home equity is generally the largest asset for most households, yet it is typically underutilized for retirement. 

 

Leveraging those funds, so they can age comfortably, offers a smart financial planning option for the right borrowers, while relieving the burden on their adult children. 

 

An alternative to long-term care insurance

According to an AARP study, showed 78% of caregivers incur routine out-of-pocket costs that average $7,242 annually.  If long-term care is needed, the expense skyrockets!  The average annual cost for a nursing home is $94,900 and $54,000 for assisted living facilities. 

Instead of rearranging their own financial plans to meet the needs of their parents, members of the sandwich generation can discuss with their parents how a reverse mortgage may help fill the financial gaps in their parents’ retirement funds.  

 

3 Tips for Expanding Your List of Financial Advisor Contacts

Thirty percent of consumers work with a paid financial advisor. And 55% of those most likely to pay for an advisor are consumers with an annual income of $100,000 or more. Bottom line: Individuals who use financial advisors tend to have a higher net worth, and their homes generally account for a large portion of their wealth. 


Financial advisors ultimately want a relationship — not a transaction. And once that trusted relationship is created, they’ll keep coming back. 


How can you connect with financial professionals to develop a solid business relationship? It’s all about being prepared for your next networking event: 


  1. Polish your elevator pitch. When someone asks, “So, what do you do?”,  be ready. You need a brief opener that’s informative and memorable without sounding rehearsed. Use examples to tell a story about how you collaborate with other professionals to enhance their value and increase business for both parties. 

  2. Have the answers. If someone is asking you questions, that’s a good sign they’re invested in what you have to say. Think about how you would describe your background, your clients and your service offerings in greater details. This is all part of creating a good first impression. 

  3. Don’t underestimate the value of small talk. Engaging in everyday small talk lets others get to know you on a casual, more personal level. If you’re going to work together, it’s important that you have that level of comfort. Don’t hesitate to set up a casual meeting over coffee or lunch to get to know each other better. 


That’s why connecting with a financial advisor can have mutual business benefits. You can introduce them to a reverse mortgage loan as a strategic financial tool to expand their clients’ options. 

Help Older Clients Age Their Way, While Growing Your Business

A reverse mortgage can be an effective financial tool to supplement a retirement funds. Here are some of the ways this loan can offer your clients the financial resources they need to age on their own terms: 


Continue to grow their investment portfolio

The impacts of inflation and an unstable market are a huge concern — and taking withdrawals now can wreak havoc on the health and longevity of their investment portfolios. But by using the funds from a reverse mortgage, your clients can use the equity in their homes and keep their assets invested. 


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Help combat inflation

The perk of opening a reverse mortgage line of credit early is that your client may borrow more now. If part of the loan is held in a line of credit, the unused portion will grow each month at a rate that is equal to the sum of the interest rate, plus the loan’s annual mortgage insurance premium rate. 


Delay Social Security benefits

As of January 2022, the maximum benefit for someone of full retirement age this year is $3,345 per month. While Social Security benefits can be claimed as early as age 62, collecting them before full retirement age may result in reduced monthly benefits for the rest of that individual’s life — even after he or she reaches full retirement age.


Finance expenses and goals

The loan proceeds can be used however your clients deem necessary — to pay for home renovations, vacations, health-related expenses, in-home care and so much more. Remind them of all the ways these funds can help create a more fulfilling and enjoyable retirement. 


Reverse mortgages have the potential to dramatically improve the quality of life of your older clients. Reach out to your Account Executive with any questions on how RMF can help you expand your client base with this opportunity.



 

1Not tax advice. Consult a tax professional.

2 If part of the borrower’s loan is held in a line of credit upon which they may draw, then the unused portion of the line of credit will grow in size each month. The growth rate is equal to the sum of the interest rate plus the annual mortgage insurance premium rate being charged on their loan.

3 The information being shown is for illustrative purposes only. Scenario is a 72-year-old borrower, with a CA home valued at $800,000, securing a Reverse Mortgage Funding LLC HECM reverse mortgage line of credit (LOC) as of 3/22/2022. LOC (i.e. the unused portion of borrower's credit limit) will grow at 4.3% + .5%. The initial APR is 4.3%. The loan has a variable rate, which can change monthly. The rate is tied to the 1 YEAR CMT plus a margin of 3.0%.  There is a 5% lifetime interest cap over the initial interest rate. This means that the maximum interest rate that could be imposed is 9.3%. This example assumes that the rate remains flat at 4.3%. Rates and funds available may change daily without notice. Closing costs vary by property state. Please call or visit online for further details