Equity Elite ®
The HECM for Purchase can be a valuable financing tool for many. Still, there are certain program constraints that can limit borrower and property eligibility, and how much can be loaned. That is why at RMF, we created our own “private label” reverse mortgage product called Equity Elite ® . While offering similar protections and features to the borrower, Equity Elite ® for Purchase may provide certain advantages over a HECM for Purchase. In particular, Equity Elite ® allows seller concessions of up to 6% of the sales price towards origination fees and other closing costs—saving the borrower money on the new property. In contrast to the HECM for Purchase, a slightly higher down payment of 55% to 75%* of the purchase price is typically required for an Equity Elite ® for Purchase loan. But for older borrowers, the contribution amount could be as low as only 42%. What sets it apart from a HECM for Purchase?
n Available to homebuyers as young as age 60 †
n Suitable for higher value homes—loan amounts up to $4 million n Available for more condominiums—FHA-approval ‡ is not required n No mortgage insurance premium can mean lower up-front costs
For example: Meet Joan and Patrick, age 66.
Over the last 30 years, the value of Joan and Patrick’s family home has skyrocketed due to its location. They would like to seize the opportunity to sell their $1.2 million house and purchase a high-end condominium closer to their children and grandchildren. But with little in savings, they don’t want to use all of the cash from their current home to finance the new property or add another monthly expense. Their Solution : With the Equity Elite ® for Purchase, Joan and Patrick can buy a condominium in an upscale community with lower closing costs and less cash
up-front. It also allows them to significantly increase their nest egg by adding the rest of the proceeds from the sale of their departure home to their savings. Plus, with no required monthly mortgage payment, they can increase their liquidity. ||
* This down payment range assumes closing costs will be financed into the loan. The information being displayed is for illustrative purposes only. Actual cash required may vary and is based on age of youngest borrower, interest rate, home value, and other factors. Please contact Reverse Mortgage Funding LLC (RMF) for details about credit costs and terms. † Not applicable in all states; some states may impose a higher age requirement. Visit www.reversefunding.com/equity-elite for details. ‡ 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. || As with any mortgage, you must meet your loan obligations, keeping current with property taxes, insurance, and maintenance.
To learn more, call your local RMF loan specialist | 6
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