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American Advisors Group (AAG) has announced the launch its new jumbo reverse mortgage loan program, called the AAG Advantage. With AAG Advantage, qualified borrowers may now obtain a reverse mortgage on properties valued at up to $6 million, versus the FHA loan limit of $625,500 associated with a traditional Home Equity Conversion Mortgage (HECM) loan.
The AAG Advantage is available not only to owners of property types eligible for a HECM loan, but also to owners of Ginnie Mae-approved condominiums. This means borrowers whose properties previously may not have qualified for a reverse mortgage now have access to this viable retirement planning tool. The AAG Advantage will initially be made available to senior homeowners in select states, and will roll out to other U.S. states in subsequent phases.
Like a HECM reverse mortgage, AAG Advantage is designed for borrowers age 62 or older to convert a portion of their home equity into cash to help them retire comfortably. With AAG Advantage, owners of higher value homes now have the opportunity to borrow up to $3 million in loan proceeds—a significantly higher amount than offered through a traditional HECM loan. With the AAG Advantage, borrowers are not required to pay mortgage insurance premiums that are charged with a government-insured reverse mortgage.
“With our new AAG Advantage, we’re proud to help extend reverse mortgages to a greater number of seniors and provide borrowers with higher value homes a solution to access more funds,” stated AAG chief executive officer Reza Jahangiri. “The launch of AAG’s jumbo reverse mortgage loan further reinforces our commitment to helping American seniors age in place and gain greater financial freedom.”