New Generation Plus reverse mortgage product for high value homes
Generation Mortgage has announced the availability of Generation Plus, a new jumbo reverse mortgage package (fixed rate) for houses valued up to $6 million.
The product is tailored for senior home owners whose homes have an appraised value higher than $1,000,000.
Jeff Lewis, the Chairman of Generation Mortgage said many home owners with high-value homes find themselves in the position of being rich in terms of the house they possess, but they also feel they are poor cash-wise. With the Plus reverse mortgage loan, senior home owners can receive the cash liquidity they desire without needing to sell their home and assets. With the real estate market improving, this reverse mortgage offering tends to become more attractive.
The minimum eligible appraised home value for this program is $500,000. Borrowers need to produce a HECM counseling certificate and the product also includes a $25 servicing fee. Senior homeowners can also use the Prime loan to purchase a home.
Generation is the first non-bank reverse mortgage lender to come up with a proprietary reverse mortgage product in the previous two years. Bank of America did also offer a jumbo reverse mortgage package, but it wasn’t very competitive to start with. Lewis wouldn’t comment on how many or which investors are purchasing the reverse mortgage product.
The Generation Plus product is open for both retail and wholesale customers.
