SAN DIEGO--(BUSINESS WIRE)--Finance of America Reverse LLC (FAR), one of the largest reverse mortgage lenders in the US and a leading provider of retirement loan products, today announced the launch of its proprietary HomeSafe® Standard product in New York. This marks the only proprietary reverse mortgage offering in New York and the first of its kind to be approved in the state in more than a decade.
“True to our ongoing innovation and leadership within the industry, we are thrilled to provide homeowners in New York with a new solution to tap into their home equity – bolstering their access to capital in support of their retirement goals,” said Kristen Sieffert, President of FAR. “We are proud to see such strong demand for our proprietary offering from suitable borrowers and believe that our commitment to them lasts through the entire life of their loan. Advisors and wealth managers now have access to a tool with a proven ability to put their client’s hardest earned asset to work.”
In a 2018 study by CNBC, New York ranked as the fourth most expensive place to live in the country. Even with incredibly high home prices, New York is home to the largest population of Baby Boomers, according to a recent RENTCafe survey. New York City alone houses nearly half as many Boomers as the entire state of Florida.
“Given areas of New York have some of the highest home values in the nation and the large population of baby boomers both entering and enjoying retirement, the need for this product is staggering and the potential impact for borrowers is very exciting,” said Jonathan Scarpati, Vice President of Wholesale at FAR. “We’re proud to provide a new solution to our partners and advisor channels who haven’t had an option like this before.”
HomeSafe® Standard is a proprietary reverse mortgage loan offered exclusively by FAR and its approved partners in 24 states. This is a full draw, fixed rate product with the flexibility to customize features for those looking for low costs or those looking for maximum proceeds. It offers a lump sum payment with no initial limitations on available funds and no prepayment penalties. Like all reverse mortgages, HomeSafe® Standard is a non-recourse loan.
As an example, a 72-year-old in New York with a $1,200,000 home value and a $300,000 balance on the first mortgage can use the HomeSafe® Standard solution to receive a principal limit of $485,916. After paying off the mortgage, they will have $243,856 to meet financial goals and needs. For an additional illustration, a 68-year-old borrower with a $2,000,000 home value and a $500,000 mortgage balance can use HomeSafe® Standard to receive $865,080 as a principal limit. When the mortgage is paid, they stand to receive $360,020 in loan proceeds.
Additional Features of HomeSafe® Standard include:
- Loan structure available up to $10,000,000, actual property value can be higher
- Loan proceeds up to $4,000,000
- No monthly mortgage payment required
- No monthly or annual mortgage insurance premium
- No FHA approval required for condos valued over $500,000
- No out-of-pocket funds required at closing
FAR is the leading provider of propriety reverse mortgage products and offers the most diverse suite of products, including; HomeSafe® Standard, HomeSafe® Flex, HomeSafe® For Purchase, HomeSafe® Second and HomeSafe® Select. The firm just announced the launch of its HomeSafe® Select product in Florida, the only proprietary reverse mortgage product in the US offering a line of credit.
Note to editors: demographics and home prices
New York’s top zip codes boast seven-figure median sale prices according to a PropertyShark study:
- Median sale prices in 2018 for the top zip-codes in Suffolk County ranged from $2,800,000 - $5,500,000
- Median sale prices in 2018 for the top zip codes in New York City were more than $3,000,000
About Finance of America Reverse LLC (FAR)
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 nationally 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.
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, homeowner’s insurance, maintenance, and related taxes (which may be substantial). We do not establish an escrow account for disbursements of these payments. 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.