Finance of America Reverse (FAR) has cut the cost of both the HomeSafe Standard and the HomeSafe Flex, two of its most popular proprietary reverse mortgage products.
FAR said it removed origination fees to trim approximately $7,000 to $8,000 from the overall cost of the products. In addition, eligible lenders can now get lender credits on customary closing costs on some products.
The change was intended to give borrowers more economical loan options when considering a reverse mortgage – countering the belief that reverse mortgages are too expensive, according to FAR.
Aside from HomeSafe Standard, FAR also released similar products that feature a line of credit or a second lien of option that are not available with the Federal Housing Administration’s Home Equity Conversion Mortgage (HECM). The lender said it plans to expand its products, specifically HomeSafe Select, in the coming months.
FAR, currently ranked No. 2 on the top 100 HECM lenders list, continued to develop non-agency, or jumbo, reverse mortgage products.