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CNBC
4 days ago
- Business
- CNBC
Finance of America reverse mortgage review 2025
When larger banks stepped out of the reverse mortgage market in the 2010s, Finance of America gobbled up much of the demand to become one of the biggest names in the field. Today, FOA is the second-largest reverse mortgage provider after Mutual of Omaha. In 2024, it originated 8,995 loans, worth a total $1.9 billion. We like that the Tulsa-based lender focuses exclusively on reverse mortgages, offering government-insured home equity conversion mortgages (HECMs), the proprietary HomeSafe loan available for up to $4 million and HomeSafe Second, a reverse mortgage that operates like a HELOC. It also stands out for customer service, with each client paired with a borrower care team member who guides them through the application process and manages their loan HECM, HomeSafe Standard, HomeSafe Second 50% Up to $4 million (HomeSafe), $50,000 and $1 million (HomeSafe Second), 62 for HECM, 55 for HomeSafe Second, 60 for EquityAvail, 55 for HomeSafe (60 in Massachusetts, New York and Washington, 62 in North Carolina and Texas), Finance of America doesn't issue reverse mortgages in California, New Mexico, New York or Oklahoma Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent out a short form online questionnaire and a representative will contact youHECM, HomeSafe Standard, HomeSafe Second Terms applyHECM, HECM for purchase, Longbridge Platinum$4 million for Longbridge Platinum62 for HECM, 55 for Longbridge Platinum in most statesLongbridge Financial lends in all 50 states Terms apply A reverse mortgage is a home loan that allows homeowners to access cash by borrowing against their home equity. Backed by the Federal Housing Authority, HECMs are available to seniors 65 and older. Some lenders have proprietary reverse mortgages, typically accessible to owners 55 and older. In both cases, the loan and any interest do not come due until the borrower moves out of their house, stops using it as their primary residence or dies. The lender can also require full payment if the borrower doesn't stay current on property taxes, homeowners' insurance or household are no credit score or income requirements but applicants: Finance of America offers standard HECMs and a proprietary jumbo loan, HomeSafe, in all 50 states. HomeSafe Second, a second-mortgage product, is available in Arizona, California, Colorado, Connecticut, Florida, Montana, Nevada, Oregon, South Carolina, Texas, Utah and Washington. The most common type of reverse mortgage, HECMs are insured by the Federal Housing Administration and available to homeowners 62 or older. Borrowers must pay a mortgage insurance premium of 0.50% of the outstanding loan balance each year. HomeSafe is Finance of America's exclusive jumbo loan. Because it's not backed by the FHA, it has more flexible terms and requirements than an HECM and borrowers can be approved for up to $4 million. The high loan limit makes it an option for homeowners with high-value homes or condos, who are usually ineligible for HECMs. HomeSafe is available nationwide to homeowners 55 and older (60+ in Massachusetts, New York and Washington and 62+ in North Carolina and Texas). Mortgage insurance premiums are not required on HomeSafe loans. HomeSafe Second is structured similarly to a second mortgage or HELOC, but has the terms and requirements of a reverse mortgage. You'll keep the rate on your primary mortgage while pulling additional cash from your equity. No payment is due until the borrower moves out of the house or dies. Unlike other lenders, Finance of America's primary business is reverse mortgages. Each borrower is paired with a dedicated agent who can help them make the best choices. FOA earned a high rating from credit rating agency Morningstar, which praised its executives' experience, as well as the "focused origination and underwriting practices, solid control environment and reliable loan performance." The Better Business Bureau awarded FOA an A+, based on transparency, truthful advertising, and its response to consumer complaints. Here's how Finance of America stands up to two major players in the market. Apply for personalized rates HECM reverse, HECM for purchase, Platinum Mortgage (proprietary loan with larger limits and a low age requirement of over 55) No specific minimum equity listed, but generally 50% Finance of America and Longbridge are both focused on the reverse mortgage market, but FOA has more options for second mortgages. Its HomeSafe Second product is available in multiple states for up to $1 million and can be dispersed as a loan, line of credit or in fixed payments. Longbridge's HELOC for seniors is only available for up to $400,000 and only in California. In addition, it can only be dispersed as a line of credit that borrowers must make monthly interest payments on. HECM, HECM for purchase jumbo, SecureEquity+, refinancing 50% Up to $4 million 62 for HECM, 55 for SecureEquity+ Mutual of Omaha offers reverse mortgages nationwide except for New York and West Virginia. and Mutual of Omaha both have reputations for excellent customer service and a range of reverse mortgage products. But only MoA has robust digital tools, an online application and an easy to use mobile app. In addition, Mutual of Omaha refinances reverse mortgages and offers HECMs for Purchase, which allows seniors to use their reverse mortgage to buy a new primary residence. FOA doesn't provide either service. Finance of America does not have an online application, but you can fill out a questionnaire on the website or call 800-841-3723 to start the process. You'll need a photo ID, your Social Security number, the deed to your house, home loan statements, proof of property tax and homeowners' insurance payments and documents related to the home's maintenance. As with any reverse mortgage, you'll also have to schedule a session with a HUD-approved housing counselor. Your home must also be appraised before the underwriting process begins. Finance of America is a great option if you're looking for a reverse mortgage from a lender with a variety of options and excellent customer digital offerings are a bit lackluster, however, and homeowners can't apply online. In addition, if you want to refinance, are looking for a HECM for purchase or are interested in a second mortgage and live outside the 12 states that offer HomeSafe Second, you'll need to choose another lender. In 2021, FOA became a publicly traded company, with investment firm Blackstone owning 60% of its stock. In August 2025, FOA announced it was repurchasing Blackstone's stake. Finance of America was formed after Finance of America Reverse (FAR) purchased American Advisors Group (AAG) and rebranded in 2023. Unlike a traditional mortgage, which requires monthly payments over a set term, a reverse mortgage is due all at once when the homeowner moves out, ceases to make the house their primary residence or passes away. One major drawback of a reverse mortgage is, if you fail to pay homeowners insurance or property taxes, your loan could come due immediately and you could face foreclosure. Even if that doesn't happen and you stay in your home for the rest of your life, you could leave your heirs with a complex financial situation to unravel. At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every mortgage review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of financial products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and Select reviews mortgage products using a variety of criteria, including the types of loans offered, average rates, terms, fees, down payment options, availability, online experience and customer satisfaction. In addition, we incorporate findings from independent sources, including lender scores from the J.D. Power U.S. Mortgage Origination Satisfaction Study and ratings from the Better Business Bureau and DBRS Morningstar.
CBS News
01-08-2025
- Business
- CBS News
How much can a 70-year-old borrow with a reverse mortgage right now?
The retirement landscape has shifted dramatically in recent years, with many Americans now finding themselves equity-rich but cash-poor as they enter their golden years. While traditional pension plans have largely disappeared and Social Security benefits continue to face pressure, one asset has quietly grown into a financial powerhouse for older homeowners: their home equity. According to recent data, the average homeowner holds approximately $313,000 in home equity, representing a substantial untapped resource for just about anything, including retirement funding. This timing couldn't be better, either, as this year has ushered in significant changes to the reverse mortgage landscape that directly benefit older borrowers. For 2025, the Federal Housing Administration (FHA) increased the maximum claim amount for Home Equity Conversion Mortgages (HECMs) to $1,209,750 — a jump of nearly $60,000 from last year's limit. And, while Federal Reserve rate cuts have been paused over the last several months, the rate cuts that occurred in 2024 helped ease some of the pressure on borrowers, making this a good time to consider a reverse mortgage. These developments represent a particularly compelling opportunity for 70-year-olds who are interested in this type of borrowing. At age 70, borrowers are old enough to qualify for substantial loan amounts, yet typically young enough to maximize the long-term benefits of a reverse mortgage loan. But exactly how much can someone at this age actually borrow in today's market? That's what we'll examine below. Find out how you can supplement your retirement income with a reverse mortgage here. At age 70, you would qualify for higher payout ratios compared to someone just meeting the minimum age of 62. HUD uses what's called a Principal Limit Factor (PLF) to determine what portion of your home's value (up to the national lending cap) you can access. For a 70‑year‑old borrowing at a typical interest rate (around 6 % currently), the PLF would be about 41%. To get a rough estimate of your borrowing limit, you would multiply the PLF against your home's value. So, if your house is worth $500,000 (below the FHA cap), the gross principal limit would be roughly $205,000 (0.41× 500,000 = $205,000). But if your home is valued, or capped, at the full $1,209,750, the maximum gross proceeds would be about $495,997 (0.41 × 1,209,750 = $495,997.50). Note, though, that the estimates above are calculated before accounting for fees, closing costs, mandatory obligations or a required life‑expectancy set‑aside (LESA). After those are deducted, your net principal limit, which is the actual amount you can choose to receive, will be lower. But what if your home is valued higher than the HECM cap allows? In these cases, you have the option to consider a proprietary jumbo reverse mortgage, which is a type of non‑FHA reverse mortgage that goes above the FHA limit, and can allow you to borrow as much as $4 million in some cases. However, this type of reverse mortgage loan does not have FHA insurance backing it. Explore your reverse mortgage borrowing options and find the right fit online now. While your age and home value set the baseline for how much you can borrow with a reverse mortgage, the strategies outlined below can help you get even more value out of your loan: Reverse mortgages offer several ways to receive your funds: a lump sum, monthly payments, a line of credit or a combination. If you don't need all the money right away, a line of credit can be especially powerful, as the unused portion of your credit line grows over time, giving you access to more funds later. This option is ideal if you want a financial cushion for the future. Reverse mortgage loan amounts are tied to the expected interest rate. The lower the rate, the more money you can borrow. Some lenders let you lock in a rate for up to 120 days, which can protect your borrowing power while you shop around or complete the application process. Not all lenders charge the same fees. Some may offer lower origination charges or waive certain closing costs. Since these expenses are deducted from your loan proceeds, finding a lender with competitive pricing can increase the actual amount of money you pocket. An experienced reverse mortgage professional can help you evaluate all your options and identify the best setup for your financial goals. They can also walk you through the process, ensure you understand all the costs involved and help you avoid common pitfalls. With so many moving parts, having the right guide can make a significant difference. For 70-year-olds considering their retirement financing options, the current reverse mortgage landscape presents a uniquely favorable opportunity. With today's high FHA lending limits and relatively stable interest rates, borrowers may be able to extract substantial value from their home equity. However, as with any major financial decision, it's crucial to thoroughly evaluate your unique circumstances, understand all costs and obligations and work with qualified professionals to ensure a reverse mortgage aligns with your long-term retirement strategy and estate planning goals.
Yahoo
04-07-2025
- Business
- Yahoo
Reverse Mortgage Guide for Ages 62+: Could You Benefit From This Loan?
With rising costs and high interest rates these days, home ownership can be tough for many people. This can be especially true for seniors, who may be on a fixed budget. Thankfully, there is an option for older adults to help improve their financial situation: a reverse mortgage. Not sure what this home loan entails? Find out more about the requirements of reverse mortgages, who can benefit from the loan and what to consider when deciding if it's the right fit for you. Also known as a Home Equity Conversion Mortgage (HECM), this is a special type of home loan designed for homeowners who are 62 and older. Unlike traditional loans, borrowers don't make monthly payments with a HECM, according to Instead, the loan gets repaid once the borrower no longer lives at home. It's called a reverse mortgage because the amount owed goes up—not down—over time since interest and fees raise the loan balance. Even though mortgage payments are not paid monthly, property taxes and homeowners' insurance are still required. Though it may sound like free money to live in a home, the loan does need to be paid back eventually. This can be done by the homeowners or the heirs, and it's usually done when you sell the home. Though the mortgages are designed for those above the age of 62, not everyone will benefit from one of these options. 'Retirees who are committed to living in their home for at least the next few years are the best candidates for reverse mortgages,' says Michael Brennan, president at Nationwide Mortgage Bankers. 'It should be your primary residence, and it's important to continue staying on top of all your other home payments: property taxes, insurance and just making sure your home stays in good condition.' But this non-traditional mortgage can also potentially help those who want to be able to stay in their current home despite some financial setbacks. 'I've seen reverse mortgages be the only way that a homeowner was able to keep their home, and receive income from their home, which saved them from having to find a new home,' adds Patricia Taffs, mortgage loan officer at Wasatch Peaks Credit Union. 'For that reason alone, I think a reverse mortgage is a great option for anyone to explore when budgeting issues are a primary concern in retirement.' The funds from the reverse mortgage can help to pay off an existing mortgage and eliminate the monthly payments. This frees up money so you only have to focus on taxes and insurance. Considering applying for the unique mortgage? The experts say it's important to know about the advantages and drawbacks that come along with this type of loan. As mentioned above, if you use this type of loan to pay off the current loan on your property, it can put you in a better financial standing. 'Reverse mortgages are one of the best financing tools on the planet, in my opinion,' shares Brennan. 'The best part about them is that you're converting a portion of your home's value into tax-free dollars without giving up ownership or needing to make monthly mortgage or interest payments.' Plus, because you're no longer making those monthly payments, it may even help you bring in money. 'Depending on the equity in the property, the loan could also provide additional monthly income to the homeowner,' adds Taffs. While a reverse mortgage can be appealing, experts do caution that people should be aware of the extra requirements that accompany the loan. These include: High up-front fees, including closing costs, service fees and an origination fee. Additional education is required as part of the loan process. You must remain the primary resident to keep the loan You cannot owe any federal debt Your home must be in good shape Because of all of these factors, it's important to consider if you actually need a reverse mortgage. Otherwise, it may be more trouble than it's worth. 'They can be expensive to do, and if there isn't necessarily a need for consistent additional monthly income, or the elimination of the current mortgage entirely, then there may be other options to secure a source of 'emergency' funds for the home, like a HELOC,' advises Taffs. As long as you are at least 62 years old and meet all of the requirements for a HECM loan, you can begin comparing lenders. Doing some research can ensure you get the best deal possible. 'The requirements and processing of reverse mortgages are the same, no matter which lender you choose, but the interest rates can be different from one lender to the next,' assures Taffs. You'll need to meet with a Housing and Urban Development (HUD)-approved mortgage counselor before moving forward, but then it's up to you to submit the application to your chosen lender. If approved, the process resembles that of any other mortgage loan with the necessary appraisal and underwriting. Once the loan closes, you can reap the benefits of your new reverse mortgage! Your Credit Score Still Matters in Retirement—Here's How to Maximize and Protect It When Should I Apply for Social Security? The Factors to Consider When Opting to Receive Benefits Senior Discounts: Find Out How to Use Them to Save Money on Travel, Retail, Restaurants and More Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
07-05-2025
- Business
- Yahoo
Comvest Credit Partners Agents Senior Credit Facility to Support the Refinancing of Peer Advisors, Parent Company of Celink, by Further Global Capital Management
WEST PALM BEACH, Fla., May 07, 2025--(BUSINESS WIRE)--Comvest Credit Partners, a leading provider of flexible direct financing solutions to middle-market companies, is pleased to announce that it is acting as Administrative Agent and is the sole lender on a senior secured credit facility (the "Financing") for Peer Advisors, parent company of Celink, the nation's leading reverse mortgage subservicer. The Financing supports Celink's continued ownership by private equity sponsor Further Global Capital Management ("Further Global"). Celink provides a comprehensive set of services to reverse mortgage lenders and borrowers. Its services include loan onboarding, data validation, call center, payment processing, lines of credit disbursements, tax and insurance monitoring, occupancy monitoring, investor and regulator reporting, foreclosure and REO management, and record retention. Celink is based in Lansing, Mich., and Tulsa, Okla. "Celink is the leading player in a complex and highly regulated niche industry and provides critical services to lenders and borrowers through its proprietary technology servicing platform," said Jack Wyatt, a Principal at Comvest Credit Partners. "We are pleased to support Celink's veteran management team and complete another transaction with Further Global, a highly experienced financial services-focused private equity sponsor. We look forward to working together to support Celink's continued growth as well as on other opportunities in the sector." "Comvest Credit Partners worked collaboratively to deliver a creative financing structure that provides both capital at scale and addresses Celink's unique needs for growth," said Olivier Sarkozy, Managing Partner of Further Global. "In addition, the Comvest team's deep understanding of the financial services sector was key to their ability to expeditiously get this deal done." About Celink Celink has been the nation's leading subservicer of reverse mortgages since 2005 and is the subservicer of choice for the nation's largest reverse mortgage lenders. Celink is a Ginnie Mae-approved Participation Agent and Subcontract Servicer for the HMBS program, a Morningstar DBRS approved servicer, as well as a Moody's approved servicer of reverse mortgages ("SQ2" rating). Celink utilizes an innovative servicing platform, ReverseServ Elite, which is fully scalable and supports numerous proprietary reverse mortgage products in addition to FHA's HECM program. For more information, visit
Business Wire
07-05-2025
- Business
- Business Wire
Comvest Credit Partners Agents Senior Credit Facility to Support the Refinancing of Peer Advisors, Parent Company of Celink, by Further Global Capital Management
WEST PALM BEACH, Fla.--(BUSINESS WIRE)--Comvest Credit Partners, a leading provider of flexible direct financing solutions to middle-market companies, is pleased to announce that it is acting as Administrative Agent and is the sole lender on a senior secured credit facility (the 'Financing') for Peer Advisors, parent company of Celink, the nation's leading reverse mortgage subservicer. The Financing supports Celink's continued ownership by private equity sponsor Further Global Capital Management ('Further Global'). 'We are pleased to support Celink's veteran management team and complete another transaction with Further Global,' said Jack Wyatt, a Principal at Comvest Credit Partners. Celink provides a comprehensive set of services to reverse mortgage lenders and borrowers. Its services include loan onboarding, data validation, call center, payment processing, lines of credit disbursements, tax and insurance monitoring, occupancy monitoring, investor and regulator reporting, foreclosure and REO management, and record retention. Celink is based in Lansing, Mich., and Tulsa, Okla. 'Celink is the leading player in a complex and highly regulated niche industry and provides critical services to lenders and borrowers through its proprietary technology servicing platform,' said Jack Wyatt, a Principal at Comvest Credit Partners. 'We are pleased to support Celink's veteran management team and complete another transaction with Further Global, a highly experienced financial services-focused private equity sponsor. We look forward to working together to support Celink's continued growth as well as on other opportunities in the sector.' 'Comvest Credit Partners worked collaboratively to deliver a creative financing structure that provides both capital at scale and addresses Celink's unique needs for growth,' said Olivier Sarkozy, Managing Partner of Further Global. 'In addition, the Comvest team's deep understanding of the financial services sector was key to their ability to expeditiously get this deal done.' About Celink Celink has been the nation's leading subservicer of reverse mortgages since 2005 and is the subservicer of choice for the nation's largest reverse mortgage lenders. Celink is a Ginnie Mae-approved Participation Agent and Subcontract Servicer for the HMBS program, a Morningstar DBRS approved servicer, as well as a Moody's approved servicer of reverse mortgages ("SQ2" rating). Celink utilizes an innovative servicing platform, ReverseServ Elite, which is fully scalable and supports numerous proprietary reverse mortgage products in addition to FHA's HECM program. For more information, visit About Further Global Capital Management Further Global Capital Management is an employee-owned private equity firm that makes investments in businesses within the business services and financial services industries. Further Global seeks to be a true partner with the management teams with whom it invests with an objective to be the "Capital Partner of Choice" to the industry. Further Global seeks out situations in which its extensive network, operational expertise and capital can drive significant value. Further Global has raised over $3 billion of cumulative committed and invested capital. For more information, visit About Comvest Credit Partners Comvest Credit Partners, the direct lending platform of Comvest Partners, focuses on providing flexible financing solutions to middle-market companies. Comvest Credit Partners provides senior secured, unitranche, and second lien capital to sponsored and non-sponsored companies in support of growth, acquisitions, buyouts, refinancings, and recapitalizations, with credit facilities up to $300 million-plus. For more information, please visit About Comvest Partners Comvest Partners ('Comvest') is a private investment firm that has provided equity and debt capital to well-positioned middle-market companies throughout North America since 2000. Through its private equity, direct lending and opportunistic credit investment platforms, Comvest offers tailored investment solutions across the capital structure along with deep industry expertise, operating resources, a collaborative approach, and significant transaction experience as an active investor. In 2025, Comvest Partners proudly celebrates 25 years of investment management leadership, and today manages $15.7 billion in assets, with over $16.8 billion invested since inception. Comvest Partners is based in West Palm Beach, with offices in Chicago and New York City. For more information, please visit
