Resources Library

Browse on-demand resources and strategies designed to help your clients improve retirement with home equity.

PLAYBOOK

Learn how a reverse mortgage fits in as part of a client’s comprehensive retirement strategy.

  • Improves cash flow
  • Provides flexibility and freedom
  • Protects against downturns
  • Elevates lifestyle
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WEBINAR

Home Equity in Retirement Planning

June 15, 2023 | 2:00PM EST

Usage Cases
GOAL
Pay for grandchildren’s college expenses.
BACKGROUND

Name: Charlene K.

Age: 72

Home Value: $650,000

Potential Loan Amount: $360,000

SOLUTIONS

A reverse mortgage line of credit withdrawing $40,000 per year for 10 years* while retaining home equity.

GOAL
To have income tax-free retirement funds.
BACKGROUND

Name: Martin S.

Age: 62

Home Value: $750,000

Potential Loan Amount: $368,500

Retirement Savings: $1,300,000

SOLUTIONS

A reverse mortgage line of credit on his home to pay the taxes on his Roth conversions, allowing for tax-free growth* and distributions for the rest of his life. His heirs will inherit the Roth income tax-free as well.

GOAL
To maximize Social Security benefits.
BACKGROUND

Name: Sarah S.

Age: 66

Home Value: $525,000

Potential Loan Amount: $288,225

SOLUTIONS

A reverse mortgage line-of-credit to supplement her cash flow, allowing her to delay taking Social Security and maximize the benefit.

Stay up to date

‘Give them a fair shake’: Why Reverse Mortgages May Be Underrated

Article

Fear-driven conversations start the relationship with clients using home equity proactively in a retirement plan. February 2023

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FAR Resurrects HomeSafe Second, Its Second-lien Reverse Mortgage

Article

HomeSafe Second, the second-lien, fixed-rate, private-label reverse mortgage is returning with a new enhancement.  February 2023

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Kellan Brown with Women To Watch

Video

Thoughtful leadership on how FAR is disrupting the Reverse Mortgage Industry via giving, mentorship, and diversity. November 2022

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Steve Resch on Investment News

Video

Three reasons why Financial Advisors recommend a reverse mortgage as a necessary option for the aging population. August 2022

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Is a Reverse Mortgage Right For Your Client?

Podcast

The ins and outs of reverse mortgages, home equity conversion mortgages, and why these options are becoming attractive for many Americans.  January 2023

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This Gold Mine Remains Largely Untapped

Article

Older homeowners are sitting on historic record levels of home equity — some $10.6 trillion plus in untapped housing wealth. October 2022

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Finance of America Reverse announced as a Finalist for “Wealthies” Award

Article

Honoring the individuals, organizations, and companies that help financial advisors build better businesses and create better outcomes for their clients. July 2022

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Older Homeowners Least Likely to Consider Tapping into Home Equity Despite Record Property Values

Article

New study shows more than half of retirees and pre-retirees are barely able to get by financially, with only 1 in 10 respondents feeling comfortable with their finances. July 2022

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FAR and Morningstar Collaborate to Educate Financial Advisors about Reverse Mortgages

Article

FAR gains exposure to 150,000 financial advisors in the U.S. to share education about FAR’s proprietary retirement solutions. October 2022

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New Research from the Stanford Center of Longevity about Retirees at Age 65

Article

New study shows more than half of retirees and pre-retirees are barely able to get by financially, with only 1 in 10 respondents feeling comfortable with their finances. October 2022

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The Case for Mentorship in Financial Services

Article

Companies with mentor programs outperform those without. Three benefits show why, and justify investing in such a program. August 2022

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Reducing Retirement Risk with Home Equity

Article

Steve Resch explains why mass affluent clients are choosing to reduce financial risk utilizing home equity. July 2022

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As Boomers Retire and Clients Live Longer, How Will Advisers Respond?

Video

Steve Resch breaks down the longevity issues that are at the heart of planning issues today. How advisers respond will be key to their success. February 2022

Watch Video

Client Opportunity Assessment

Worksheet

Simple questions to help you and your client evaluate if a reverse mortgage may be right for them.

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Frequently Asked Questions

Below are some frequently asked questions to help clients better understand the option of a reverse mortgage:

Yes. The borrower still retains ownership of the home and may sell it at any time with no prepayment penalties. The home is simply secured with a lien similar to a traditional mortgage or home equity line of credit.

There is never a required principal or interest payment during the life of a reverse mortgage loan. Homeowners are still required to pay property-related expenses, including taxes, insurance, and HOA fees.

Generally, the loan balance is due after the last borrower permanently moves from the home or passes away.

The borrower’s heirs may sell the home and keep any remaining equity if they wish, or refinance with a traditional mortgage if they want to retain the property. In the event the loan exceeds the value of the property, the heirs can choose to walk away via foreclosure with no responsibility to the remaining balance.

Yes, reverse mortgages are non-recourse loans, which means the lender can only look to the subject property for satisfaction of the mortgage lien. The borrower and/or heirs are never personally liable for satisfaction of the reverse mortgage.

FAR’s proprietary products can offer borrowers loan amounts up to $4 million.

Yes. The home can be in a trust, revocable or irrevocable, provided the trust meets FHA trust guidelines.

This amount is generally based on the home’s value, prevailing interest rates, and the age of the youngest borrower or eligible non-borrowing spouse.

Reverse mortgages are only available on the borrower’s primary residence, which can be a single-family home or up to a four-unit dwelling.

However, there are no restrictions on the use of reverse mortgage proceeds. As long as borrowers continue to meet the occupancy requirements of the loan, they may use their proceeds as part of a secondary property purchase.

The borrower is responsible for all property-related expenses, including taxes, insurance, and HOA fees.

No. All reverse mortgage proceeds are considered loan proceeds and not subject to income tax.

Borrowers must be at least 62 for an FHA-insured reverse mortgage and 60 (where applicable by state law) for a lender-specific product, including FAR’s proprietary solutions. Younger spouses can remain on the property title but cannot be on the loan.

The terms of the loan remain the same as long as one borrower remains in the home.