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Equity Edge: A Powerful New Financial Option for Homeowners and Homebuyers age 60+
Are you 60 or older and still making mortgage payments?
Does your credit card balance worry you? Is the rising cost of healthcare causing you stress? Concerned you may not have enough money to live comfortably in retirement?
You’re not alone. Most people facing retirement have the same concern.
According to a 2017 study published by the National Council on Aging (NCOA):
- 91% of homeowners age 60 and older said they are worried about rising medical expenses.
- 83% are concerned about having enough money to live comfortably in retirement, and worry about outliving their retirement savings.
- 80% want to stay in their current homes as long as possible, but they may not know how to accomplish this.
- More than half are concerned with having the financial resources to maintain their home.
- 35% worry about being able to provide financial help or leave an inheritance to their family.
But there’s good news: Now there’s a brand-new financial tool to help homeowners like you take advantage of their home equity. It’s called Equity Edge Reverse Mortgage, and it’s exclusively for those age 60 and above. There’s even an option that eliminates nearly all closing costs.†
Whether you own a house or condominium, Equity Edge makes it easier to qualify. That’s because Reverse Mortgage Funding LLC (RMF) designed it specifically for people who are retired or nearing retirement. So you do not need to be working full-time or even part-time to qualify — an advantage over other types of home equity-based loans. And condo complexes do not have to be FHA-approved,* so more condos qualify.
You can use Equity Edge like a home equity loan, or to refinance your existing mortgage to reduce your monthly bills. You can even use it to buy a different home — one that better meets your retirement needs.
If you own, or want to buy, a higher-valued home (i.e., over $1 million), you can access more funds with Equity Edge than you can with traditional loan products. Equity Edge allows you to borrow up to $4 million, depending on your home’s value — which is significantly more than is possible with a standard Home Equity Conversion Mortgage (HECM), the most common type of reverse mortgage.
As part of RMF’s ongoing commitment to education, we created this short video about Equity Edge — take a look! Then call (877) 485-1259 today to talk to an experienced loan specialist and get answers to all your questions about Equity Edge or any other type of reverse mortgage.
SEE WHAT FUNDS YOU MAY HAVE AVAILABLE
If you have equity in your home and believe you meet the eligibility requirements, a HECM may be the option that could help you retire smart.
†With this pricing option, borrower receives a lender credit covering nearly all closing costs. There is a non-refundable independent counseling fee of approximately $125 on average, which the borrower pays directly to the counseling agency. Terms and conditions apply. Not available in all states.
*This material has not been reviewed, approved or issued by HUD, FHA or any government agency. The company is not affiliated with or acting on behalf of or at the direction of HUD/FHA or any other government agency.
Equity Edge Reverse Mortgage (“Equity Edge”) is Reverse Mortgage Funding LLC’s proprietary loan program, and it is not affiliated with the Home Equity Conversion Mortgage (HECM) loan program, which is insured by FHA. Equity Edge is available to qualified borrowers who also may be eligible for HUD, FHA’s HECM program or are seeking loan proceeds that are higher than HUD, FHA’s HECM program limit. Equity Edge currently is available only for eligible properties in select states. Please contact your loan originator to see if it is currently available in your state.
Upon a maturity event, any non-borrowing individuals with an ownership interest in the property, including non-borrowing spouses, will have 90 days to purchase the property from the estate or, if the non-borrower inherits the property, pay the loan in full using any sources of funds available to them. Any non-borrowing individual, including a non-borrowing spouse, should have a plan to pay off an Equity Edge reverse mortgage upon the borrower’s death or any other maturity event. If the non-borrower is unwilling or unable to purchase the property or pay the loan in full, there is no protection for the non-borrower (including a non-borrower spouse) to maintain an interest in the home or to continue residing in the home past the maturity event and the non-borrower may be evicted upon foreclosure. The FHA HECM program has protections in place for certain non-borrowing parties, so a reverse mortgage applicant with certain non-borrowing parties should strongly consider a FHA-insured HECM loan (see HECM guidelines or ask an RMF representative for details). Under the Equity Edge reverse mortgage loan program, a maturity event occurs when the last surviving borrower no longer lives in the home as his or her primary residence for at least 12 months, the property charges (including taxes, insurance, HOA dues or any other property charges) are not paid, required repairs are not completed or the property is not maintained, or any other maturity event, as specified in the Security Instrument, occurs."