Members of Generation X may now qualify for reverse mortgages with this lower minimum age requirement
BLOOMFIELD, NJ / ACCESSWIRE / September 1, 2021 / Reverse Mortgage Funding, LLC (RMF), one of the nation's top reverse mortgage lenders, today announced a significant enhancement of its propriety reverse mortgage product, Equity Elite®. The enhancement lowers the minimum qualifying age for homeowners applying for this reverse mortgage product from 60 to 55 years of age, in certain states.
Members of Generation X, born between 1965 and 1980, will be between the ages of 41 and 56 this year. Gen X is preparing for retirement with record amounts of home equity, taking on the responsibility of caring for older children and aging parents and often carrying the burden of expensive debt. Meanwhile, Gen X is well positioned to take advantage of home equity conversion loans as their generation's home equity rebounded more than any other generation since the Great Recession. Those in the older portion of this generation, age 55 and older, can now qualify for reverse mortgages with RMF's Equity Elite®.
"Equity Elite's lowered age requirement means an estimated 2.7 million homeowners could now qualify for a reverse mortgage, according to market statistics," says John K. Lunde, Founder and President of Reverse Market Insight. "We expect Gen X to expand the number of active reverse mortgage borrowers as they plan for retirement and are on-track to own more home equity than previous generations."
RMF was one of the first reverse mortgage lenders to lower the minimum age requirement of 62 when it changed the requirement to 60 for its Equity Elite® product. Specifically designed for those age 60 and older, this lower-cost reverse mortgage option allows borrowers to potentially tap into more funds than they could with a Home Equity Conversion Mortgage. In addition to lowering the minimum age requirement to 55 across 20 states, RMF plans to launch Equity Elite® in even more states in the coming months. This market expansion allows RMF to offer financial planning options to members of Gen X who are approaching retirement.
"Market research tells us that members of Gen X are experiencing a dramatic shortfall in retirement savings, not to mention a decline in pension plans. For many of these individuals, tapping into their home equity will be key to supplementing their minimal retirement savings," says Joe DeMarkey, Strategic Business Development Leader at RMF. "This expansion presents a huge opportunity to educate pre-retirees about financing tools outside of forward loans. Our aim is to equip this population with options so they can plan for a more financially secure retirement."
Lowering the minimum qualifying age to 55 for reverse mortgages also serves most, if not all, homeowners in 55+ age-restricted communities. Newly qualified homeowners who meet the lowered age requirement now have the chance to buy a new home in these exclusive retirement communities with an Equity Elite loan.
"Residents in age-restricted communities now have more financial flexibility to plan their retirement, whether that's using a reverse mortgage for a new home purchase, paying off expensive pre-existing debt or covering health care bills and additional expenses," says David Peskin, President of RMF. "The nation's largest home builders may now offer more financial products, like RMF's Equity Elite, to help residents purchase their new homes - a significant achievement for the industry."
The proprietary product lowers the age requirement for Equity Elite® reverse mortgages from 60 to 55 in the following states: Arizona, California, Colorado, Connecticut, Washington, D.C., Florida, Georgia, Hawaii, Illinois, Michigan, Montana, New Jersey (lump sum and line of credit, only), New Mexico, Nevada, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina and Virginia, with more states to be announced in the near future.
To learn more about Reverse Mortgage Funding, please visit ReverseFunding.com.
About Reverse Mortgage Funding LLC
Established in 2012, Reverse Mortgage Funding LLC (NMLS ID #1019941) is one of the nation's largest GNMA issuers of reverse mortgages and a recognized industry thought leader. RMF focuses on originating, acquiring, investing in, and managing reverse mortgage loans and securities backed by reverse mortgage loans. The company is headquartered in New Jersey, with corporate offices in New York and California and field offices throughout the U.S. RMF is a wholly owned subsidiary of Reverse Mortgage Investment Trust Inc. (RMIT), a specialty finance company in the reverse mortgage sector. In 2020, RMIT became part of the Starwood Capital Group, a global private investment firm and an innovator in non-agency mortgages, helping grow the industry into the success it is today. This relationship will afford RMF the unique ability to develop new product lines and create strategic partnerships within the Starwood family of companies.
Not for consumer use. This material has not been reviewed, approved or issued by HUD, FHA or any government agency. The company is not affiliated with or acting on behalf of or at the direction of HUD/FHA or any other government agency.
©2021 Reverse Mortgage Funding LLC, 1455 Broad Street, 2nd Floor, Bloomfield, NJ 07003, 1-888-494-0882. Company NMLS ID: #1019941. For licensing information, go to: www.nmlsconsumeraccess.org. Arizona Mortgage Banker License #0927682; Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act; Loans made or arranged pursuant to a California Financing Law license; Georgia Mortgage Lender Licensee #36793; Massachusetts Mortgage Lender License #ML1019941; Licensed by the New Jersey Department of Banking & Insurance; Licensed Mortgage Banker-NYS Department of Financial Services -in-state branch address 700 Corporate Blvd, Newburgh, NY 12550; Rhode Island Licensed Lender. For California consumers: For information about our privacy practices, please visit https://www.reversefunding.com/privacy. Not all products and options are available in all states. Terms subject to change without notice. Certain conditions and fees apply. This is not a loan commitment. All loans subject to approval. L3968-Exp092022
SOURCE: Reverse Mortgage Funding LLC