1st Reverse recently announced some changes to its HECM Pathway product, which is designed to assist borrowers in hardship situations where they receive little to no proceeds after settlement. Starting in 2009, the program includes four major changes to help more borrowers qualify:
- Fixed Rate program now available for HECM Pathway™ borrowers (ARM’s previously available).
- Purchase and refinance transactions are eligible.
- Borrower eligibility for consideration under the HECM Pathway™ programs are limited to borrowers needing to be funds to closing or borrowers receiving less than $10,000 in proceeds at the time of loan funding.
- Lower HECM Pathway™ qualifying interest rate calculation produces enhanced borrower proceeds.
Below is an example of what a 70 year old with an appraised value of $200,000 is able to qualify for with a HECM and the Pathway.
EXAMPLE NOTES: For illustration purposes only. Programs, rates and terms subject to change without notice. Illustration intended for Financial Professional use only; not intended for consumer use. Illustration created using active market rates on the date sample was prepared.
“The new enhancements to the HECM Pathway™ program continue our commitment to helping seniors,” said Ralph Rosynek, President of 1st Reverse. “We are able to offer access to enhanced funding from a reverse mortgage program that borrowers facing financial hardship need during these uncertain financial times.”