Cash Advantage Plan: Frequently Asked Questions

Q. What is the Cash Advantage Plan?
A.  The Cash Advantage Plan offers several options to provide seniors with a broad range of choices to access their home equity. While somewhat similar to home equity loans offered by banks, the Cash Advantage requires no income qualification. The loan amount is determined by the home value and the borrower’s age. The loan does not mature until the borrower sells or permanently moves out of the home (does not live in the home more than twelve consecutive months).

Q. What are the benefits of Cash  Advantage Plan?
A. Cash Advantage provides the borrower with a higher available loan amount and a lower interest rate.

Q. What is the Credit Line Option?
A. The Cash Account Advantage Credit Line Option reverse mortgage offers borrowers an open-ended revolving line of credit. The unused line of credit grows by 5% per year. The minimum amount of any draw after closing is $500.

Q. What is the Equity Choice feature? How will it benefit me?
A. Equity Choice is a value-added feature that allows the borrower to limit the loan obligation to a stated percentage of the full-market value of the home. This means the amount of the loan or the line of credit may be less than the amount for which borrower otherwise qualifies.

Equity Choice enables borrowers to protect a minimum of 10% and a maximum of 50% of their home equity. It also provides greater flexibility, assuring the borrower that a percentage of equity will remain, benefiting the borrower or heirs when the loan matures.

 Q. What kinds of homes are eligible for the Cash Advantage Plan reverse mortgages?
A. The following home types are eligible for Cash Plan reverse mortgage:

          ● Single-family detached homes
          ● Manufactured homes (must be built after June 1976
          ● Condominiums (some restrictions apply)
● Planned Unit Developments (PUDs) (some restrictions apply)
● 1 to 4 rental unit (one must be owner occupied)