Urban Financial Of America Intros New Jumbo Reverse Mortgage Product

Posted by Patrick Barnard on September 03, 2014 No Comments
Categories : Residential Mortgage

With an aim of helping struggling American seniors to ‘age in place,’ Urban Financial of America (UFA) has introduced a new jumbo reverse mortgage product called ‘HomeSafe.’

Currently available for homes with high values in California, Florida, Hawaii and New Jersey, this new reverse mortgage product lets seniors access up to $2.5 million in loan proceeds, the company claims in a press release.

That's more than traditional reverse mortgages or home equity conversion loans (HECMs) that have legislated maximum available loan proceeds of $469,125.

‘Now, homeowners with significant value in their homes have a reverse mortgage option that may afford them more loan proceeds, and potentially a greater amount of cash up front, than a HECM product,’ says said Steve McClellan, president of UFA. ‘Ultimately, HomeSafe can give borrowers an opportunity to tap into more of that property value when they need it.’

Unlike HECMs, HomeSafe reverse mortgages do not carry a required mortgage insurance premium, the company claims. It also is more flexible than a HECM, in that seller concessions and lender credits are allowed. What's more, condominiums valued at over $500,000 do not have to be Federal Housing Administration-approved to qualify.

UFA, which is licensed in 45 states and Puerto Rico, says it plans to roll out HomeSafe to additional states in the future.

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