New American Funding, a national leader in retail mortgage banking, has a new focus when it comes to the Reverse Mortgage business: the purchase market.
Wells Fargo and Bank of America have exited the Reverse Mortgage business leaving a share of the market to be distributed among eager lenders. New American Funding is poised to capture part of this market with its new Reverse Mortgage Division by offering Reverse Mortgage loans to consumers looking to refinance as well as those looking to purchase.
When used to refinance, a Reverse Mortgage loan allows for homeowners 62+ to pull out the equity in their home and turn it into cash; instead of making a monthly mortgage payment, the borrower receives tax free income. However, the borrower must pay property taxes and homeowners insurance.
New American Funding offers the FHA Insured Home Equity Conversion Mortgage (HECM) for Purchase as another option to borrowers 62 or older who want to downsize, move closer to the kids, or settle in a retirement community without having to pay a mortgage payment. This loan is designed so borrowers can purchase a new home and obtain a reverse mortgage all in one transaction. The HECM for Purchase does require a higher down payment but in most scenarios provides a net gain to the borrower, allowing them to use this gain to cover property taxes and homeowners insurance.
Rick Arvielo, President of New American Funding, explains the strategy of using a reverse mortgage loan to purchase a home in the video: Reverse Mortgage Purchase Strategy with Rick Arvielo.
About New American Funding
Over a decade ago, New American Funding, a direct lender in the retail mortgage banking industry, began with a clear vision and a plan for gradual but steady expansion. With locations in Orange, San Diego, and Los Angeles Counties New American Funding has positioned itself as a leader in the FHA, VA, Conventional, Jumbo and the Reverse Mortgage Markets. Through hard work, dedication, cutting edge technology and pristine marketing programs, New American Funding has grown by over 300% since 2006. New American Funding employs a more targeted and personal approach to not only help consumers, but to expand their business by partnering with realtors, builders and industry professionals.