The number one reason that a senior would choose to partake in a proprietary jumbo reverse mortgage is to fund repairs or modifications on their home, followed by other reasons like the purchase of an investment property, assist in a child’s property purchase or provide them with early inheritance, and to establish college funds for grandchildren.

This is according to loan data from the Advantage proprietary jumbo product, compiled and provided by American Advisors Group (AAG).

AAG reviewed the data surrounding more than 250 of the initial pool of Advantage proprietary customers and determined the 10 primary reasons they chose to avail themselves of the product.

The complete list of top 10 reasons is broken out by AAG as follows:

1. To make home modifications or repairs
2. To buy an investment property or a vacation home
3. To help children purchase a property
4. To provide children with an early inheritance
5. To create college funds for grandchildren
6. To establish a trust fund
7. To cover in-home care costs
8. To have more financial liquidity
9. To maintain their current lifestyle
10. To pay off other debts

“The client’s average loan amount and age were both surprises, because we expected them to be much lower,” an AAG spokesperson told RMD. “These results will be reflected in our messaging, as we’ll be more focused on wealthy seniors with our jumbo products. This research was another innovative step towards our commitment to finding retirement solutions for all types of older Americans.”

“Jumbo reverse mortgage loans present an opportunity for older Americans to achieve greater financial comfort and expand their wealth,” said Paul Fiore, AAG’s chief retail sales & operations officer in the data’s accompanying press release. “Products like Advantage have emerged as an optimal option for affluent homeowners who have a desire to diversify their capital and invest in other aspects of life, such as family needs, home remodeling or secondary property purchases.”

AAG shared the average profile derived from existing Advantage customers. The average value of a property owned by customers is $1.7 million, and the average loan amount is $665,000. The average age of a borrower is 77 years old, and the average credit score is 729.

AAG Advantage first launched in late 2015.