When 1st Reverse announced it was releasing a new jumbo reverse mortgage product, there was plenty of questions from RMD readers. Below is some additional information about the new FLEX jumbo reverse mortgage product :
- Index = 1-Month LIBOR
- Margin – 5.500
- Available for refinances and purchases.
- Eligible Property Types – SFD, Condos, PUD’s, and 2-4 units (if one unit is owner occupied
- Proprietary counseling required (IAMP)
- Eligible states = AZ, CA, CO, CT, DOC, DE, FL, GA, HI, IL, MI, MD, NY, NC, NH, NJ, NM, MD, NY, NV, OH, OR, PA, RI, SC, VT, WA, VA, WI
Borrowers with property values of $1.5 million and up will find the FLEX provides a competitive alternative to a HECM, even with the higher loan limits. Below is an example of how the product compares to a HECM for a borrower with no mortgage balance.
|Fixed HECM||Flex Jumbo|
|Home Value||$ 2,500,000||$ 2,500,000|
|Principal Limit||$ 498,125||$ 750,000|
|Avail Cash||$ 467,878||$ 711,250|
Correspondents will be required to complete the mandatory webinar training in order to be able to originate the FLEX product. Initially, the product will be rolled out to a select group of correspondents said Ralph Rosynek, President of 1st Reverse.