Live Well Financial is rolling out a new fixed rate Home Equity Conversion Mortgage, the “Fixed Fourtune,” following another recent product rollout last month.
The new product allows borrowers to access the full principal limit within program guidelines and disburses the remainder of the available funds in four annual draws spread over a four-year period, while adhering to Federal Housing Administration program requirements.
It’s similar to Live Well’s Fixed Advantage in that it allows borrowers to take a fixed rate reverse mortgage with access to additional proceeds after the initial draw and one-year post-closing period has passed. The company says its initial product launch was well received.
“The launch of the HECM Fixed Advantage has been very successful and well received by lenders and borrowers. We are excited to add the Fixed Fourtune program as a complement to the Fixed Advantage, which we believe will be used as a planning product to help borrowers who have less of an immediate need for funds and prefer to receive their proceeds over time,” said Bruce Barnes, Executive Vice President of Live Well.
Live Well also stressed that the products are compliant with FHA guidelines as they are Home Equity Conversion Mortgages.
“Both Live Well HECM Fixed Rate programs are fully compliant with FHA guidelines and the funding options are consistent with the utilization restrictions implemented by FHA,” Barnes said. “We believe both products are essential to meet the needs of different borrower profiles in the marketplace, and provide lenders with options to properly help borrowers choose a reverse mortgage program that is best suited to meet the borrower’s needs.”
Written by Elizabeth Ecker