Last year, American Advisors Group, an Orange, California-based reverse mortgage lender, unveiled a jumbo reverse mortgage program, called the AAG Advantage.
With the AAG Advantage program, qualified borrowers are able obtain a reverse mortgage on properties valued up to $6 million, compared to the Federal Housing Administration loan limit of $625,500 associated with a traditional Home Equity Conversion Mortgage loan.
The AAG Advantage program was initially launched in select states through the company’s retail channel in September, and now the company is making the AAG Advantage program available to its wholesale partner network in California.
According to information provided by the company, AAG Advantage is designed for borrowers age 62 or older to convert a portion of their home equity into cash to help them “retire comfortably.”
AAG said that through the Advantage program, owners of higher value homes now have the opportunity to borrow up to $3 million in loan proceeds, which is a significantly larger amount than offered through a traditional HECM loan.
According to AAG, its California wholesale partners may now market the AAG Advantage jumbo reverse mortgage to owners of property types eligible for a HECM loan, and also to owners of Ginnie Mae-approved condominiums, which the company states can expand the potential market for reverse mortgages in California.
We’re pleased to now offer the AAG Advantage to our wholesale partners in California, where many of their clients’ property values tend to be higher,” says Kimberly Smith, senior vice president of wholesale lending at AAG. “With AAG Advantage and our solid network of California wholesale partners, we can help extend reverse mortgages to a greater number of seniors, provide them access to more funds and help them age in place with increased security and peace of mind.”
The company also said that it plans to expand the AAG Advantageto other states through both retail and wholesale platforms in future phases.