Financial Freedom Cash Account Reverse Mortgage

Several years ago, Financial Freedom Senior Funding Corporation, based in Irvine, CA, introduced a "jumbo" proprietary reverse mortgage product called Cash Account to benefit homeowners living in higher-priced homes valued above the FHA and Fannie Mae lending limits.

Additionally, this product may work well for unusual properties or situations, not typically allowed by FHA and or Fannie Mae. Financial Freedom is a subsidiary of IndyMac Bank, F.S.B.

In 2004, Financial Freedom introduced the Simply Zero Cash Account™, the first-ever reverse mortgage loan to eliminate all up-front costs.

Cash Account Features and Benefits:

• Designed for borrowers age 62 years or older
• Virtually no maximum home value or loan limit
• Special six-month introductory rate (6 month LIBOR [index] + 4.5% [margin])
• Lifetime interest rate cap is 6% over the initial annual percentage rate (6 month LIBOR [index] + 5% [margin])
• No equity or appreciation sharing and no maturity fee
• Proceeds/advances are not taxable
• No prepayment penalty
• Loan is non-recourse
• Servicing fee is automatically financed on the account monthly (no servicing fee in Illinois and Maryland)
• Eligible home types: single family detached, manufactured, condo, PUD, 1-4 rental unit if one is owner occupied, COOPS in New York State
• Counseling by an independent counselor
• Minimum home value at origination: $75,000