Proprietary Reverse Mortgages
A wave of new privately insured reverse mortgages have hit the market.
We've highlighted key features to break down how these loans compare.
Minimum borrowing age
Minimum property value
Finance of America Reverse
The Equity Edge
Must take all proceeds at closing
Adheres to FHA residual income guidelines
None, but any value above $10 million doesn't apply to PLF calculation
Yes, Fannie Mae-approved or RMF-approved condos can apply
Yes, for homes valued over $500,000
Yes, Fannie Mae-approved condos & Fannie Limited Review
Must have a minimum UPB of $100,000
None, but must be able to extract more than possible with HECM
Yes, it is a
full-draw, fixed-rate loan
Yes, a one-time draw at closing, from 60-100% of approved LTV
No; FLEX allows 40% of proceeds in monthly term payments
Yes, but can be used to extinguish consumer debt
Streamlined process; residual income based on FHA, dependent on home value
Has similar requirements
Depends on product
For FLEX only, $30 monthly fee added to loan balance
Created August 2018 by HousingWire's ReverseReview.
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