While many independent reverse lenders offer proprietary reverse products, the HomeSafe line is offered by Finance of America Reverse, the largest reverse wholesale.
The primary benefit of the HomeSafe loan is that it provides for loan amounts higher than a Home Equity Conversion Mortgage – up to $3 million with home values up to $10 million.
It also has no monthly mortgage insurance premiums as well as competitive interest rates to other jumbo mortgages.
Another benefit offered is fees that can be rolled into the loan with little to no out-of-pocket costs, to include zero origination fees and closing costs paid by the lender, except counseling fees, state fees and owners title insurance.
The HomeSafe Standard is a fixed rate, closed end mortgage, that does not contain a line of credit feature. At closing, the borrower is required to take all the available proceeds (with some exceptions) and there are no prepayment fees.
Beyond that, like all reverses, there are no minimum monthly payments required and the loan does not come due until the home is no longer the primary residence of the borrower.
What other benefits does the HomeSafe Standard offer?
- Eliminate monthly mortgage payments
Payoff your first mortgage and no longer pay a monthly mortgage payment, increasing your cashflow that for whatever suits you best.
- Cover medical or in-home care expenses or renovate your home for aging in place
The proceeds from your HomeSafe jumbo reverse can be used for whatever you’d like… cover anticipated medical expenses, offset long-term care insurance or home remodeling.
- Refinance existing mortgage to access larger pool of funds
Looking to augment existing invested funds? A HomeSafe mortgage lets you take funds from an otherwise limited growth asset and invest as you and your financial advisor deem appropriate.
- Pay for grandchildren’s education
Instead of waiting to leave funds to heirs, accelerate your giving by providing your heirs with the education and life they deserve
The HomeSafe Select reverse mortgage is an open-ended loan, having a line of credit feature allowing for future draws. Available in limited states, it is available in Florida and now, Georgia has been added to the list.
Containing the same primary benefits as the HomeSafe Standard, this loan requires an upfront draw of 25% of the principal limit (amount available to borrow) and has a maximum line of 75% of the principal limit at closing.
The line of credit has a growth rate attached but, unlike the HECM line of credit, can never exceed the original principal limit.
While sharing the benefits of the HomeSafe Standard, the Select also has:
- A maximum loan amount of $4 million with a maximum home value of $10 million
- No mortgage insurance
- No prepayment penalty
The Homesafe Second has been temporarily discontinued. However, check back soon for new products becoming available.