HomeSafe® Standard Provides New Yorkers Attractive Option to Optimize Home Equity, Boost Retirement Planning
July 23, 2019 — 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.
A Demographic ‘Perfect Storm’?
“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.
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.