Longbridge Financial, LLC

Longbridge Platinum Jumbo Reverse Mortgage  

Platinum Line of Credit1 (LOC) Program: your senior clients’ go-to HELOC substitute.

Many clients who are retired—or close to it—want to stay invested and have the available cash to live the lifestyle they desire. Many of these clients will choose a HELOC to get the cash they need—and although a HELOC can be a good financial option for some, it wasn’t designed with seniors in mind. Longbridge Platinum was.

More cash than a HECM.
More flexibility than a HELOC.

A Longbridge Platinum proprietary reverse mortgage can help your older adult clients with higher home values unlock more of their home equity than a traditional Home Equity Conversion Mortgage (HECM). 

That means more opportunities for you—giving you a competitive edge you can use to better serve senior clients. Platinum features: 

  • Loan amounts up to $4 million3
  • Wide range of eligible home values
  • Attractive low-rate options
  • Borrower never owes more than the home is worth when it’s sold and the loan is repaid
  • Expanded eligibility for condos
  • Lower minimum borrower age requirement than a HECM: 55 years2

Compared to a HELOC, a Platinum LOC1 features greater flexibility and fewer restrictions for clients:

  • A reusable line of credit1
  • No mortgage insurance premiums (MIP), which may mean lower upfront costs 
  • Comparable rate
  • Monthly mortgage payments optional (keeping current with property taxes, insurance, and maintenance required) 

Age Qualifications Expanded

Now open to more clients: age 55+2

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"Longbridge has been very easy to work with, making the reverse mortgage easy for me and for my clients. They make sure everyone really understands how the program works and their responsibilities. Plus their pricing saves clients a lot of money!"
Steve B.Texas
"I have used Longbridge for reverse mortgages for two of my clients over the last year. I plan to continue to use this group as an additional arrow in my quiver of planning resources. I would strongly encourage any open minded planner to use reverse mortgages for select clients…"
Daryl C.Texas
"Longbridge is very easy to work with and responsive to all questions about reverse mortgages."
John M.Georgia
PLATINUM LINE OF CREDIT1 VS. STANDARD HELOC: A CLOSER
COMPARISON.
 Platinum LOC1Standard HELOC
OwnershipBoth types of loans allow your clients to own and keep the title of their homes4
PaymentsNo monthly mortgage payments required4Requires monthly mortgage payments
Interest deductionClients can deduct the interest, if optional payments are madeClients can deduct the interest5
Payoff and redrawClients can access up to 75%6 of the Principal Limit during the first 10 years—with the ability to redraw repaid principal amountsClients can pay off and redraw during the first 10 years, but there may be a penalty
Rate adjustmentsEvery monthEvery month
Payback deadlineNone, as long as clients meet the terms of the loan and remain in
their home		Typically comes due after 10 years
Prepayment penaltyNo penalty for early repaymentPrepayment penalties can be charged in some cases—ask the lender
Non-recourse loan protection

Clients and their heirs can never owe the lender more than the home is worth at the time of its sale. 

No such protection
CounselingIndependent, Platinum-approved counseling helps clients fully understand their optionsNo independent counseling provided
QualificationsClients must be homeowners age 55+2 and use the home as their primary residenceClients must qualify based on credit score and income

Put the power of Platinum to work for your clients now—and keep their investments working longer.

By incorporating a retirement strategy specifically for clients with higher-value homes, you can help them unlock their home equity and extend the life of their retirement assets.

Clients can reap all the benefits of a reverse mortgage, and leave higher-performing investments to grow over time—while using the proceeds to:

  • Eliminate monthly mortgage payments4
  • Generate a lump sum that’s tax-free7 to use for home renovations or repairs, medical expenses, and more
  • Use the line of credit option to set up a financial “safety net” for the future
  • Refinance an existing reverse mortgage to get more available cash
  • Buy a house or condo that’s a better fit for their retirement needs

Platinum delivers a long list of borrower benefits:

  • More available cash as compared to a traditional HECM
    • Fixed-Rate Program for clients looking for a full-draw loan at a low, fixed rate
    • NEW Line of Credit Program for clients who want some upfront cash now—and a reusable line of credit for the future
  • Attractive low-rate options
  • No mortgage insurance premium = lower upfront costs
  • Non-recourse protection = no personal liability
  • Greater flexibility and fewer restrictions
  • Expanded eligibility for condos
  • Streamlined approval process

Answers to common questions clients ask about Longbridge Platinum.

It’s a proprietary, non-Federal Housing Administration (FHA) reverse mortgage program for homeowners age 55 and older2 with a minimum home value of $450,000. It lets them borrow against their home equity without having to make monthly mortgage payments. They must continue to pay property taxes, homeowners insurance, and maintain the property.
While subject to the same regulatory requirements as HECM loans, there are some important differences. Longbridge Platinum allows clients to access more of their home’s equity than a standard HECM—up to $4M.3 It’s specifically for properties with home values that exceed the FHA loan limit,8 or aren’t eligible for FHA financing—such as condominiums that aren’t FHA approved, or some Planned Unit Developments. Compared to a HECM, Platinum has low upfront costs and no mortgage insurance premiums, which can save clients thousands over the life of the loan.
Longbridge Platinum has borrower protections similar to standard reverse mortgages. No matter what happens in the economy, how much money they receive, or how long they live in their home, they won’t be required to make a mortgage payment.4 Plus, Platinum is a non-recourse loan—the lender cannot hold your client or their heirs personally liable, even if the loan amount exceeds the home’s value at the time of its sale.

Yes. They retain the same ownership and title that they have today, as long as they keep current with property taxes, homeowners insurance, and home maintenance. Just like a traditional “forward” mortgage, the lender simply puts a lien on the property—which is paid off when the clients sell their home, or when the last borrower no longer lives in it. Heirs can inherit the house, just as they would with any other mortgage, and can decide how to repay the loan.

With a standard mortgage, clients must make monthly payments to the lender, eventually paying off the mortgage over time. Longbridge Platinum lets seniors receive a lump sum of cash at closing with two options: with no initial-draw limits, or with some cash up front and the rest in a reusable line of credit.1 As long as they live in their home, they never have to make a monthly mortgage payment. However, just like a conventional forward mortgage, they must continue to pay property taxes, homeowners insurance, and for home maintenance.

They can use it in any way they wish. It’s non-taxable and typically does not affect Social Security payments. We always recommend that clients talk to their advisors to determine the effect on any other benefits they may be receiving, especially when receiving a large lump sum from a reverse mortgage at closing. Having excess funds in their account could impact eligibility for certain government benefit programs.

The loan comes due when the borrower 1) sells the property; 2) no longer lives in the home as their primary residence; or 3) if they fail to meet one of the requirements of the loan—such as paying property taxes, homeowners insurance, and home maintenance.

Since they retain the title to their home, they also retain their obligations as a homeowner—such as paying property taxes and insurance, and any other assessments that may be applied to their property (e.g., homeowners association fees).

Yes—after the balance of their Longbridge Platinum reverse mortgage is paid off, any remaining equity goes to their heirs. That amount will depend on a number of variables, such as loan balance, how long they stay in their home, how much the home appreciates in value, and other factors.

  1. Line of credit option is not available in some states. Please ask your loan originator if your state is eligible and for more details.
  2. Available to borrowers as young as 55 in select states only. Higher minimum age requirements may apply.
  3. The state of MA has a maximum loan amount/lending limit of $2,000,000.
  4. Keeping current with real estate taxes, homeowners insurance, and property maintenance required.
  5. Depending on the use of the proceeds.
  6. Except for the first 25% taken at closing.
  7. Clients should consult a financial advisor and appropriate government agencies for any effect on taxes or government benefits.
  8. Loan amount is determined by property value, borrower’s age, and interest rate.
Longbridge Platinum Reverse Mortgage (“Platinum”) is Longbridge Financial, LLC’s proprietary loan program and is not affiliated with the Home Equity Conversion Mortgage (HECM) loan program, which is insured by FHA. Platinum is available to qualified borrowers who also may be eligible for FHA’s HECM program or are seeking loan proceeds that are higher than FHA’s HECM program limit. Platinum currently is available only for eligible properties in select states. Please contact your loan originator to see if it is currently available in your state.
Longbridge Financial, LLC

61 South Paramus Road, Suite 500, Paramus, New Jersey 07652

(855) 246-1765

advisors@longbridge-financial.com

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