Figure Technologies has introduced Figure Home Advantage, a sell-and-leaseback alternative to reverse mortgages for retirees.
The company said the offering provides access to more cash, since under a typical sale-leaseback agreement, 80% to 90% of the home's value commonly goes directly to the homeowner. Additionally, since Figure Home Advantage does not have an age restriction, Baby Boomers can use it to lock in housing prices as they plan their retirement.
Under the offering, Figure would buy the home and grant the sellers a lease that renews annually. Homeowners get their proceeds in one lump sum to bolster their nest egg, cover their expenses, or fund what matters most to them. Figure takes care of the property management from there, covering property taxes, homeowner's insurance, and ongoing maintenance.
Figure Home Advantage is initially available in 12 markets: Atlanta, Cincinnati, Cleveland, Dallas, Houston, Philadelphia, Phoenix, Pittsburgh, San Antonio, Jacksonville and Tampa, Fla., and Reno, Nev. The company plans to reach 40 markets across the US by the end of 2019.
"We're building solutions to help Americans cope with this looming retirement issue. With rising interest rates, cash-out refinancing is an increasingly painful way to meet cash flow needs. Yet for homeowners nearing or already in retirement, home equity may be the most important source of money they have to support retirement," Figure CMO Wendy Harrington said. "By unlocking hard-earned equity with Figure Home Advantage, homeowners can aid their retirement with additional funds and less stress."