Finance of America Reverse has introduced HomeSafe Select, a proprietary HELOC reverse mortgage loan.
HomeSafe Select is a non-FHA adjustable-rate mortgage loan that offers an initial closed-end draw of 25% of loan proceeds at closing. The remainder is available to borrowers as an open-ended line of credit with a 5% internal rate of growth to be drawn and repaid at any time.
The loan will be offered exclusively by Finance of America Reverse and its approved partners. HomeSafe Select will be available through the company’s retail and wholesale channels to borrowers in California, with additional states expected to be available in the coming months.
Other features of HomeSafe Select include availability for properties valued up to $10 million and loan proceeds up to $4 million. The offering also does not have monthly or annual mortgage insurance premiums or pre-payment penalties, nor does it require FHA approval for condos valued over $500,000.
“As people evaluate how home equity fits into their retirement plans, we know they are increasingly looking for options that offer both flexibility and growth,” Finance of America Reverse President Kristen Sieffert said. “In building this latest addition to our product suite, we saw an opportunity to bridge the last gap between HECM and existing proprietary products while also staying true to our mission to help people get to work on retirement. HomeSafe Select can help people leverage part of their home equity today while at the same time growing their available funds for future needs. We are incredibly excited to continue to be a trusted partner in removing the barriers that prevent people from achieving a fulfilling retirement.”