Finance of America Reverse announced this week that the eligibility age for borrowers to take out a reverse mortgage is now 60 years old.
The change from an eligibility age of 62 to 60 only applies to FAR’s proprietary offerings, including HomeSafe Standard, HomeSafe Flex, and HomeSafe Second.
The lowered age requirement does not apply to Federal Housing Administration HECM loans.
The change also won’t take effect in Texas or Utah, which have retained 62 as the minimum age for borrowers to qualify for such products.
Finance of America Reverse Vice President of Organizational Development Dan Hultquist said that this change makes the most sense for those who need to enhance their cash flow earlier in the retirement process, but cautioned on taking on those additional years of interest.
“The caveat is that this may extend the life of a loan which would mean that more interest accrues,” Hultquist said in a statement. “So, as with any mortgage-related product, borrowers need to make sure that this is appropriate for their specific financial situation.”
FAR President Kristen Sieffert expressed similar sentiments.
“We are pleased to meet industry demand for this amendment but stress that borrower responsibility is paramount in factoring in whether this new timeline makes sense for their long term retirement goals,” Sieffert said.
Last year, Finance of America Reverse rebranded itself as a retirement solutions provider. With this rebrand, Finance of America Reverse partnered with Silvernest, an online service that pairs older homeowners with qualified housemates.
More recently, Finance of America Reverse launched its HomeSafe Standard product in New York, the only proprietary reverse mortgage offering in the state and first of its kind to be approved in more than a decade.
Finance of America Reverse also announced the launch of its HomeSafe Select product in Florida, expanding the footprint of this groundbreaking line of credit offering.