PROGRAM ANNOUNCEMENT: Platinum Jumbo/Proprietary Reverse Mortgage Program
Before the market crash, there were several jumbo reverse mortgage programs and then they all disappeared when the market crashed around 2009/2010.
It wasn’t until more than 5 years later that the first program reappeared and tentatively at first. The loan amounts and underwriting guidelines were very restrictive but as investors saw that there really was an appetite for the jumbo and private product again, whispers of other programs to be announced began to fill the market.
Introducing the Platinum Jumbo Reverse Mortgage
The Platinum Reverse Mortgage is a jumbo loan in that it will lend to much higher loan limits than the HUD Home Equity Conversion Mortgage (HECM or “Heck-um”), but it’s not just a jumbo loan because it has other welcome features as well.
In addition to much higher property values, the Platinum Program will also work with FHA and FNMA approved and Warrantable condominiums under a limited review process.
That means if your condominium is not FHA approved you may be eligible for our Platinum reverse mortgage!
Platinum Jumbo Features
There is no upfront or annual mortgage insurance premiums. The loan is a fixed rate loan, but borrowers may opt to take less than the full amount available (you do have to realize that any funds you do not take will not be available later so make your choices wisely), the loan has a servicing fee and a no servicing fee option with different rates offered and will allow borrowers to use reverse mortgage proceeds to meet the income requirements as well as pay off debts to qualify.
For properties valued up to $2,000,000, only one appraisal is required (our underwriter will also utilize a desktop collateral analysis). Both refinances and home purchases are allowed and on purchase transactions, sellers and interested parties can pay up to 6% contributions.
Loan amounts can go up to $4,000,000 with no cap on property values and there is still no recourse other than the property to borrowers or their heirs with this loan, just like the protections of a federally-insured HECM loan.
- Borrower Age 62 prior to closing
- Eligible States – CA (More to come – soon!)
- Minimum Home Value – $350,000
- No Maximum Home Value
- Maximum Loan Amount – $4,000,000
- Purchase Allows Seller/Interested Party Contributions to 6%
- Condominiums – FHA and FNMA approved or warrantable under Limited Review Process
- Choice of full or partial cash out disbursement at closing
- No Upfront or Annual Mortgage Insurance Premium (MIP)
- Non-Recourse Protection
Platinum Features 2018's Highest Jumbo Loan-to-Values
AGE Cash Benefit with $1,000,000 Home Value Cash Benefit with$2,000,000 Home Value Cash Benefit with $3,000,000 Home Value
75 $45,000.00 $90,000.00 $135,000.00
Eligible Property Types:
- Single family residence.
- Two- to four-family residences whereby the borrower(s) occupy one of the units.
- Townhomes (attached and detached).
- Maximum of 20 acres.
- Planned Unit Development (PUD).
- Condominium (FNMA approved, FNMA warrantable projects under a Limited Review process or FHA approved).
- Site condominium.
- Solar Lease with UW approval (attorney approval is not required)
- Minimum credit score is 640 for all borrowers. (middle score)
- If two (2) borrowers on the loan, both must have a minimum of 640.
- If a borrower only has 2 credit scores, the lowest will be used.
- If a borrower only has 1 credit score, that is what we
- No scores due to lack of credit = NOT ELIGIBLE
The proprietary and jumbo reverse mortgages also a fantastic program and is also getting better all the time as well, but it is such a welcome site to see programs like the Platinum Reverse mortgage coming into the market to help borrowers with higher valued homes or properties like condominiums that were great projects but just were not HUD approved.
The additional funds available in some cases and the increased availability of the program to more borrowers is a great sign for reverse mortgage borrowers who have been limited to just the HUD program that never was meant to meet the needs of all properties.
After all, more choices and options is always a good thing for borrowers looking to meet their particular financial needs and the Platinum Reverse will help do just that!