A Jumbo Reverse Mortgage Client Conversation:
“Hello, yes I want a reverse mortgage on my multi-million dollar home… and I don’t want to take all of the cash at closing but would prefer a line of credit. .
Oh, and I don’t want to be required to make payments on any regular schedule either. It’s important we are able to stay in our home without the reverse mortgage being due for as long as we want. And just in case the housing market crashes, could you please make that mortgage non-recourse; so if somehow we owe more than the home is worth, my heirs, my estate and I are protected.”
“…Yes Sir. We can do all of that!”
This is a conversation that couldn’t have happened two years ago. We are seeing more and more affluent home owners look to a reverse mortgage and the most frequent request we have had was for a line of credit in the Jumbo reverse mortgages.
Now we can do all of that.
I’m about to call David, a client referred to me by his financial planner, to tell him the loan of his dreams is finally here. David and his wife live in a beautiful $2.4 Million dollar high rise condo in Downtown San Diego. They have over $700,000 in assets and their financial planner would like them to be able to plan for the cost of care should one of them need it. As a former mergers and acquisitions lawyer, David liked that the reverse would pay off their current mortgage and they wouldn’t need to make monthly mortgage payments anymore. But he was struggling with the idea to take all of the funds in a lump sum because he didn’t want to incur interest on that much if he didn’t have a use for it right away. So for around 6 months we have been talking about the different options and program changes for the FHA HECM and the Jumbo reverse mortgage options. He really wanted a Line of Credit, but the previous Jumbo reverse mortgage options just didn’t work for him.
There are other tax and portfolio benefits the reverse will help with, too; but we won’t get into that today.
The HomeSafe® Select is the a non-FHA reverse mortgage that will lend on higher home values. This is important in California as many of our clients have homes worth over $800,000; the FHA insured reverse mortgage just wasn’t giving them enough benefit because the FHA reverse loan amount is limited to basing loan-to-value on a max value of $726,525.
With this new Line of Credit Jumbo Reverse mortgage, all liens against the property must be paid off first, all or some the remaining proceeds can be taken and in this case, left on the line of credit and accessed as needed.
Features of this new Jumbo Reverse Line of Credit:
Line of Credit can be drawn on for 10 years
Loan amounts up to $4 Million
No Mortgage Insurance Premiums
The many Reverse mortgage professionals at C2 Reverse and I are very excited to be able to offer this and many more reverse mortgage options. As a mortgage broker, I am able to listen to people’s goals and concerns and help sort through all of the options available to them. I’ve found it allows me to put what I know to the best use and really help people in an area where there is a lot of mis-information out there. It’s always been rewarding, and now with this new line of credit jumbo reverse mortgage I can bring to them the mortgage so many people have been asking for!
Christina Harmes, Certified Reverse Mortgage Professional
CA BRE 01809003 NMLS 1094286
This licensee is performing acts for which a real estate license is required. C2 Financial Corporation is licensed by the California Bureau of Real Estate, Broker # 01821025; NMLS # 135622. Loan approval is not guaranteed and is subject to lender review of information. All loan approvals are conditional and all conditions must be met by borrower. Loan is only approved when lender has issued approval in writing and is subject to the Lender conditions. Specified rates may not be available for all borrowers. C2 Financial Corporation is an Equal Opportunity Mortgage Broker/Lender.