lender has released a jumbo reverse mortgage product.
American Advisors Group has released the product, called AAG Advantage, to its wholesale partner network in California. The product allows brokers and loan officers to originate reverse mortgages
through AAG on properties valued at up to $6 million, according to a company press release. By contrast, the FHA
has a loan limit of $625,500 associated with the traditional home equity
conversion (HECM) loan.
The AAG Advantage product, like a HECM loan, is designed for borrowers 62 and older to convert a portion of the equity in their homes to cash. Owners of high-value homes can use the AAG Advantage produt to borrow up to $3 million in loan proceeds. They’re also not required to pay the mortgage insurance premiums that are charged on a government-insured reverse mortgage.
“We’re pleased to now offer the AAG Advantage to our wholesale partners in California, where many of their clients’ property values tend to be higher,” said Kimberly Smith, senior vice president of wholesale lending at AAG. “With AAG Advantage and our solid network of California wholesale partners, we can help extend reverse mortgages to a greater number of seniors, provide them access to more funds and help them age in place with increased security and peace of mind.”
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