American Advisors Group (AAG) has released its jumbo reverse mortgage loan, the AAG Advantage, to its wholesale partner network in California. With AAG Advantage, California brokers and loan officers may originate reverse mortgages through AAG 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 was initially launched in select states by the company’s retail channel last September. The loan will roll out to other states through both retail and wholesale platforms in future phases.
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 greater 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.
AAG California wholesale partners may market the AAG Advantage jumbo reverse mortgage not only to owners of property types eligible for a HECM loan, but also to owners of Ginnie Mae-approved condominiums, expanding the potential market for reverse mortgage in California.
“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.”
