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Equity Elite


THE REVERSE MORTGAGE REINVENTED

As a top reverse mortgage lender, we think homeowners deserve more. So at Reverse Mortgage Funding LLC (RMF), we’re serving our customers by applying our fresh perspective. By working to make reverse mortgages better, we’ve made them a better choice for you by introducing Equity Elite Reverse Mortgage, an innovative new loan product available exclusively from RMF as the lender.
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60 IS
THE NEW 62

Reverse mortgages are no longer reserved for homeowners and homebuyers over 62 years of age. RMF has reinvented the reverse mortgage, with a new product for those 60 years of age and older.

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MORE ACCESS TO FUNDS

You may be able to access even more equity than with traditional reverse mortgages on the market. 

LOWER UPFRONT COSTS

Since there is no mortgage insurance premium, Equity Elite may have lower up-front costs than a traditional HECM.

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If you are 60 and older with at least 50% in home equity,
complete the form below!

By clicking "CALCULATE ELIGIBILITY", you are providing your signature and express "written" consent to be contacted by or behalf of Reverse Mortgage Funding LLC, its affiliates and/or its agents (collectively Company) at the telephone, email or mailing address that you have provided for purposes of fulfilling this inquiry about reverse mortgages and/or the Company's products or services, even if you have previously registered on a "do not call" government registry or requested Company to not send marketing information to you by email and/or direct mail. You agree that the Company may use automatic telephone dialing systems and prerecorded voice messaging in connection with calls or texts made to the telephone number you provide even if the telephone number is assigned to a cellular or mobile telephone service or other service for which the called party is charged. You understand that you are not required to consent to receiving autodialed calls or texts as a condition of any reverse mortgage and/or purchasing any Company products or services. If you do not wish to authorize Company to contact you in this manner, you can call 888-277-4496 to complete your request. You understand that you can revoke this consent at any time.

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FOR AMERICAN HOMEOWNERS AGE 60+

Traditional reverse mortgages, also known as Home Equity Conversion Mortgages (HECMs), changed the game for longtime homeowners who wanted to access the valuable equity they’d built up over time. But HECMs have limitations on who can borrow, and how much. With Equity Elite, more people have more access to their home equity.

LEARN MORE ABOUT EQUITY ELITE

WHICH ONE IS RIGHT FOR YOU?

Not sure if you should be considering a HECM or Equity Elite?
This comparison chart can help you understand our products better.

  Home Equity Conversion Mortgage (HECM) Equity Elite from
Reverse Mortgage Funding LLC
Minimum age to qualify 62 60
Limit on amount of proceeds you can take in the first 12 months YES NO
Non-recourse feature
(You'll never owe more than the home is worth when the loan is paid)
YES YES
How much can be borrowed? Less than $726,525 Up to $4 Million
Mortgage Insurance Premium cost Upfront and ongoing NONE
Condominium eligibility FHA-approved condominium communities only Community can be FHA-approved, Fannie Mae-approved or RMF-approved–so more condos qualify
Closing Costs Lender closing costs apply Equity Elite Zero offers a lender credit to be applied towards most closing costs
It’s a versatile home equity loan created specifically for older homeowners and homebuyers, allowing them to turn part of the equity they’ve built up in their home into funds they can use as they choose.

It’s a lot like a mortgage you’d get from a bank or credit union (in fact, many of them offer reverse mortgages). However, there are key differences that make reverse mortgages better suited for people who are retired or looking ahead to retirement.

Most reverse mortgages are FHA-insured* Home Equity Conversion Mortgages (HECMs). The typical reverse mortgage candidate is at least 62 years old, has 50% or greater equity in their home, and wants to:

  • Reduce or eliminate monthly mortgage payments. As with any mortgage, you must meet your loan obligations: keeping current with property taxes, homeowners insurance and keeping your home in good condition (or good shape).
  • Consolidate other debt, such as credit card balances
  • Make home improvements
  • Establish a line of credit to be available for unplanned expenses
In addition to HECMs, some lenders have also introduced proprietary loan products to accommodate a broader array of borrowers. For example, Reverse Mortgage Funding LLC (RMF) offers Equity Elite, which is available to those as young as 60 and designed specifically for higher-value homes, condominiums, and borrowers who want low up-front costs.1
  • All borrowers on the home’s title must be at least 62 years old or 60 years old in some states with our Equity Elite product. The older you are, the more funds you can receive from a Home Equity Conversion Mortgage (HECM) reverse mortgage.
  • You must live in your home as your primary residence for the life of the reverse mortgage. Vacation homes or rental properties are not eligible.
  • You must own your home outright or have at least 50% equity in your home. Even if you owe some money on your existing mortgage, you may be eligible for a reverse mortgage. The funds from the reverse mortgage would first pay off your mortgage and satisfy any other eligible existing liens before you could use the funds for other things. Refinancing existing debt(s) with a reverse mortgage can help improve monthly cash flow.
  • You must meet with a Department of Housing and Urban Development (HUD)-approved reverse mortgage counselor prior to applying for a reverse mortgage. The reverse mortgage counselor will discuss how a reverse mortgage works and the associated costs. The goal of the counseling session is to make sure that potential borrowers fully understand and are comfortable with the process and the loan terms.

  • Lump Sum – A lump sum of cash at closing. (Borrowers who elect a fixed rate loan will receive a single disbursement lump sum payment. Other payment options are available only for adjustable rate mortgages)
  • Tenure – Equal monthly payments as long as the homeowner lives in the home
  • Term – Equal monthly payments for a fixed period of time
  • Line of Credit – Borrowers can draw any amount at any time until the line of credit is exhausted
  • Any combination of those listed above
Except for a fee for required reverse mortgage counseling, most of the fees can be financed with your loan, so out-of-pocket costs are minimal.

The costs are added to the loan amount (“principal”) and paid along with the accrued interest when the loan becomes due. Depending on the loan option chosen, there may be an origination fee, closing costs, a mortgage insurance premium (required for HECM loans) and a monthly servicing fee. However, there are also options (such as Equity Elite) that eliminate nearly all up-front costs.1 We will let you know exactly what costs are involved.
It must be repaid when the last surviving borrower sells the home, moves out, or passes away. Typically, the home is sold to repay the loan, and the homeowner or their heirs keep any remaining equity. If the homeowner or family members wish to keep the property, the loan can be repaid any time using a traditional mortgage or other funds.  As with any mortgage, you must meet your loan obligations: keeping current with property taxes, homeowners insurance and keeping your home in good condition (or good shape).
It is extremely important to RMF and the entire reverse mortgage industry that borrowers and their families understand their obligations. As with any mortgage, the borrower has certain obligations under the loan:
 
  • Keep the home in good condition
  • Keep current with property taxes and insurance
  • And with a reverse mortgage, the borrower(s) must live in the home as the primary residence (there is an annual certification)
The details of the borrower obligations are discussed during the independent counseling session, and a counseling certificate is not issued until the counselor certifies the prospective borrower’s understanding of the loan terms and conditions. Failure to meet loan obligations can lead to the loan becoming due and payable.
Yes, with the reverse mortgage for purchase loan, qualified borrowers can use their loan proceeds to buy a home that better suits their needs and lifestyle. It’s a home financing option that can make it easier for buyers age 602;and older to afford the home they want, while preserving more of their savings
 
  • With a traditional home equity loan or home equity line of credit, you must make monthly principal and interest payments on the balance while you live in the home — whereas a reverse mortgage has a flexible repayment feature. You can pay as much or as little as you like each month toward principal and interest, or make no monthly loan payment at all. Your reverse mortgage balance, including accrued interest and fees, does not have to be repaid until you pass away or move out, and as with any mortgage, you must meet your loan obligations: keeping current with property taxes, homeowners insurance and keeping your home in good condition (or good shape).
  • If part of your loan is held in a line of credit upon which you may draw, then the unused portion of the line of credit will grow in size each month — giving you access to more available funds as time goes on. The growth rate is equal to the sum of the interest rate plus the annual mortgage insurance premium rate being charged on your loan.
  • And the lender cannot “freeze” or reduce the line of credit, as long as you fulfill your loan obligations — so it will be there if and when you need it.
No. This is the #1 misconception. In fact, as with any mortgage, the borrower holds the title to the home.

A reverse mortgage is a lot like a traditional mortgage, with an important distinction: a flexible repayment feature that allows the borrower to make any size monthly mortgage payment, or even none at all. As with any mortgage, the borrower must meet their loan obligations, keeping current with property taxes, insurance and maintenance.
Recent product advances have made reverse mortgages more attractive, and academic researchers and financial advisors have developed effective strategies for using a reverse mortgage as part of an overall retirement plan. Just as there are loans specifically for students and for first-time homebuyers, a reverse mortgage is another type of “life stage” loan.

Increasing longevity and rising healthcare costs have also changed the retirement landscape. The ability to access home equity through a reverse mortgage can provide tremendous peace of mind to live safely and comfortably as long as possible.
For most people, a mortgage is the biggest financial commitment they’ll ever make. So it’s important to do your homework and find a lender that makes you feel informed, confident and comfortable in your decision-making.

Asking probing questions—and hearing straightforward, honest answers—will help your family feel you’re heading down the right path in securing a comfortable retirement for your parents or loved ones. If you work with a financial advisor, bring them into the process.

HOW IT WORKS

Cynthia is 60 years old. Her and her husband Daniel have recently moved into a luxury condo, but currently have a home equity loan that requires them to make burdensome monthly principal and interest payments.

By refinancing her existing home equity loan with a reverse mortgage, Cynthia and Daniel can drastically reduce that monthly payment, thanks to the reverse mortgage’s flexible repayment feature. (As with any mortgage, she must meet her loan obligations, keeping current with property taxes, homeowners insurance and any homeowners association fees, and keeping her home in good condition.)
 

THE RESULT

 

  • Cynthia and Daniel are able to keep more money in their pockets each month.
  • They can be more financially prepared for the future.
  • They can avoid tapping into their savings and invested assets that are a source of income.

 

RECENT CUSTOMER REVIEWS




 

SEE WHAT FUNDS YOU MAY HAVE AVAILABLE

If you're a homeowner with a high value home who's at least 60 years old, with equity in your home, you may be eligible for this financial solution.

Check Eligibility

Equity Elite Reverse Mortgage (“Equity Elite”) 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 Elite 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 Elite 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. 

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.

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 Elite 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 Elite 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.

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