Longbridge is one of the few mortgage bankers that solely offers reverse mortgages. Among these are traditional HECM reverse mortgages, HECM for purchase reverse mortgages, and a special product called Longbridge Platinum. This allows those with properties worth $425,000 or more to qualify for a nongovernment reverse mortgage program.
You can choose to receive your payments in monthly installments, as one lump sum, or as a line of credit. Or, you can opt for any combination of the three. The company is extremely upfront in terms of fees. It promises not to charge hidden fees, and you’ll be made aware of any fees before you sign.
The only major cost you have to worry about is the origination fee, which is based on the value of your property. Additionally, you’ll need to pay FHA mortgage insurance, which guarantees you will never owe more than your home is worth, regardless of the size of the loan. You’ll also have to pay third-party closing costs, which could include credit checks, title insurance, home appraisal costs, and an FHA-mandated counselling fee.
Longbridge reverse mortgage products are only available for those aged 62 and above (except for borrowers in Washington, Louisiana, and New Jersey, who only need to be 60 or older) who want to borrow against their home equity without needing to make monthly payments. The company’s products can help seniors who are short on money and need to pay living expenses.
Longbridge offers three main reverse mortgage products. These include:
Because the U.S. Department of Housing and Urban Development and Federal Housing Administration regulate HECMs, Longbridge’s HECM reverse mortgage will look similar to other options on the market. This type of mortgage is for homeowners 62 years or older. Here’s what to know about the reverse mortgage product:
You can opt to receive your loan funds via a line of credit, lump sum payment, term payments, or a combination of one of those three.
This reverse mortgage comes with all of the same features as a traditional HECM, but it’s specifically for those who want a reverse mortgage to buy a new home. Many seniors prefer this option as it allows them to take out a single loan and reduce closing costs.
Also known as a proprietary loan, this is a nongovernment, reverse mortgage geared toward those 55+ who own high-value properties worth more than $425,000. Loans are limited to $4 million, which is four times the amount as HECM limits. Additionally, you do not need to pay mortgage insurance for proprietary loans. Otherwise, you can expect the same as HECM loans in terms of closing costs, draw periods, interest rates, and origination fees.
Here’s how to apply for a Longbridge reverse mortgage:
You are not required to make any repayments as long as you are living in the primary residence. However, you can choose to make repayments as often as you like, for whatever amount. Then, you’ll need to repay the full loan amount (this includes the principal plus accrued interest and fees), once the last surviving homeowner has been out of the property for 12 months.
Customer support options include:
|Lender or Marketplace||Lender||Marketplace||Lender|
|Minimum credit score||None||Varies by lender||None|
|APRs||Fixed or adjustable||Varies by lender||Fixed or adjustable|
|Better Business Bureau score||4.07||Varies by lender||4.65|
|Proprietary loans available?||Yes||Varies by lender||Yes|
|Funding options||Lump sum, line of credit, or fixed payments||Varies by lender||Lump sum, line of credit, or fixed payments|
Longbridge offers traditional HECM loans, HECMs for purchase, and proprietary reverse mortgage loans, known as Longbridge platinum loans. Because HECM mortgages are government-regulated, Longbridge offers many of the same features and conditions as other mortgage companies.
However, the company sets itself apart by offering excellent learning resources, including a FAQ page, video tutorials, and customer support via phone and email. Longbridge will also help you set up your appraisal and closing appointment. Finally, the company promises to not charge any hidden fees, so you’ll know exactly what you’re paying before signing.
A: Up to $675,625 for HECMs and $4 million for proprietary, but will depend on the value of your home.
A: No. You will maintain title and ownership.
A: Yes. Your reverse mortgage proceeds will first be used to pay off that loan.
A: You can use the proceeds in any way you wish.
1 International Blvd #900, Mahwah, NJ 07495
This review was compiled using information from the Longbridge website.