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New FLEX Jumbo Reverse Mortgage Details

1stRevFS-WSFS 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
Rate 6.31 5.978
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.