Q. What is the Cash Account Advantage Plan?
A. The Cash Account 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 Account Advantage requires no income qualification. The loan amount is a function of 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 Account Advantage?
A. Cash Account 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 origination fee on these reverse mortgages is 2% or $2,500, whichever is greater, of the Initial Advance Limit (the maximum amount that is available to you on this loan).
 
The minimum amount of any draw after closing is $500. The unused line of credit grows by 5% per year.

Q. What is the Combo Option?
A. There is no origination fee on the Cash Account Advantage Combo Option reverse mortgage. The borrower will be responsible for all third party closing costs including, but is not limited to, title, closing agent, flood certification, tax service, credit report, appraisal, including any government taxes or fees required.

The Cash Account Advantage Combo Option reverse mortgage requires borrowers to draw at least 75% of the Initial Advance Limit maximum available at the time of closing. The Minimum Initial Advance must also be at least $200,000.
The minimum amount of any draw after closing is $500. The unused line of credit grows by 5% per year.

There is no full prepayment penalty. A partial prepayment is not allowed on the Minimum Initial Advance for the first five years.

Q. What is the Cash Out Option?
A. The Cash Account Advantage Cash Out Option has no origination fee and no closing costs (excluding state or local taxes, if any) if you draw a minimum of $275,000 at closing.

The required draw at closing is 100% for this loan option. There is no full prepayment penalty. A partial prepayment is not allowed on the Minimum Initial Advance for the first five years. 

Q. What is the Equity Choice feature? How will it benefit me?
A. Equity Choice is a value-added feature that is available on all three Cash Account Plan options.

It 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 from a minimum of 10% up to 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 Account Plan reverse mortgages?
A. The following home types are eligible for Cash Account Plan reverse mortgage:

• Single-family detached homes
• Manufactured homes (must be built after June 1976)
• Condominiums
• Planned Unit Developments (PUDs)
• 1 to 4 rental unit (one must be owner occupied)
• Co-ops (New York State only)

Reverse Mortgage Sales 3839 S. Tuttle Ave. Sarasota, FL 34239 Serving all of Florida 1-800-998-2523