Longbridge Reverse Mortgage Review

Overview

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. 

Suitable For?

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. 

Types of Loans/Products

Longbridge offers three main reverse mortgage products. These include:

Traditional HECM Reverse Mortgage 

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:

• Origination fee: Capped at $2500 for homes valued under $125,000 and capped at 2% for homes worth $125,000-$200,000. For homes valued above $200,000, lender can charge 2% on the first $200,000 and 1% on the remaining, with a maximum charge of $6,000. 
• Age requirements: At least 62, or 60 for residents of Washington, Louisiana, and New Jersey. 
• Maximum loan: No more than $675,625, regardless of how much equity you have. 
• Rates: Both fixed and adjustable interest rates available. Longbridge offers rates as low as 4.5%. 
• Mortgage insurance: Required for HECM loans. You’ll owe 2% of the loan’s value upfront, followed by annual premiums of 0.5% of your loan balance. 
• Closing costs: This varies, and may include legal fees, escrow fees, appraisals, and assessments. 
• Draw period: 5 years.

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. 

HECM for Purchase 

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. 

Longbridge Platinum

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. 

The Application Process

Here’s how to apply for a Longbridge reverse mortgage:

1. Check eligibility requirements: No minimum credit score or debt-to-income ratio required. However, you need to live in your home as your primary residence, have no outstanding federal tax liens, and have made all federal property tax payments in the last two years. 
2. Credit counelor session: Meet with a U.S .Department of Housing and Urban Development-approved  independent third-party counselor. 
3. Application: After receiving your credit counseling certificate, you’ll work with a Longbridge lender to apply online. Information needed to apply includes proof of income, date of birth, social security number, mortgage information, and homeowner’s insurance information. 
4. Appraisal: Your home will be appraised to determine how much money you can borrow. Longbridge will order these services on your behalf from an appraisal management company. Turnaround time for appraisals depends on appraiser availability in your area. 
5. Underwriting and closing: Your loan will be reviewed by an underwriter to ensure you meet all of the requirements. Longbridge’s internal closing department will assist you in scheduling a time to meet with a signing agent to close on your loan. 
6. Funding: Longbridge guarantees funding within 45 days of receiving your credit counseling certificate.

Repayment Terms

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. 

Help & Support

Customer support options include:

• Contact form via website
• Robust FAQ page
• Over 20 video tutorials on reverse mortgages via Longbridge’s website
• Phone support: 9-5 EST, Monda-Friday at 866-957-3471
• Email: info@longbridge-financial.com

How Longbridge Compares

Summary

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. 

FAQs

Q: How much can I qualify for?

A: Up to $675,625 for HECMs and $4 million for proprietary, but will depend on the value of your home. 

Q: Does the bank take the title to my home?

A: No. You will maintain title and ownership. 

Q: Can I apply for a reverse mortgage if I already have an existing home loan?

A: Yes. Your reverse mortgage proceeds will first be used to pay off that loan. 

Q: How can you use a reverse mortgage?

A: You can use the proceeds in any way you wish. 

Physical Address

 1 International Blvd #900, Mahwah, NJ 07495

Methodology

This review was compiled using information from the Longbridge website.