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Longbridge Financial, LLC Review
Longbridge Financial, LLC Review
April 25, 2024 / Michael Graw
Longbridge Financial, LLC Review
April 25, 2024 / Michael Graw
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At a Glance

Longbridge Financial is a reverse mortgage lender and servicer approved by the Department of Housing and Urban Development (HUD) and serves homeowners who are 55 or older.* With an A+ rating with the Better Business Bureau (BBB) and excellent customer satisfaction ratings from independent review sites, Longbridge Financial is committed to responsibly helping seniors who want to tap into the power of their home equity with a reverse mortgage.

*The Longbridge Platinum proprietary jumbo reverse mortgage is available to borrowers as young as 55 in select states only. Higher minimum age requirements may apply depending on product and state.

Key Figures

Loan types: Reverse Mortgage

Loan products: Home Equity Conversion Mortgage (HECM), HECM for Purchase, Longbridge Platinum Proprietary Jumbo Reverse Mortgage

Minimum credit score: N/A

Repayment terms: Repayment due at time of maturity event (such as when borrower no longer lives in the house)

Pros

  • Offers multiple reverse mortgage loan products
  • Educational resources available, including a free Reverse Mortgage Information Guide
  • A+ rating with Better Business Bureau

Cons

  • No online application option. (Longbridge Financial live customer service is available by phone Monday through Thursday, 8 a.m. to 8 p.m. ET and Friday 8 a.m. to 5 p.m. ET. Their website includes access to an online calculator 24/7, but does not have an online application.)
  • Products only available to homeowners as young as age 55. (The Longbridge Platinum proprietary jumbo reverse mortgage is available to borrowers as young as 55 in select states only. Higher minimum age requirements may apply depending on product and state.)

Longbridge Financial offers three types of reverse mortgages: a Home Equity Conversion Mortgage (HECM), a HECM for Purchase, and a jumbo proprietary mortgage product, Longbridge Platinum. Homeowners can opt to receive their income tax-free funds* as a lump sum, monthly disbursements, a reusable line of credit, or combination of these methods. It’s important to note that borrowers who elect a fixed rate loan will receive a single disbursement lump sum payment; other payment options are available only for adjustable rate mortgages. The Longbridge Financial website has excellent educational information for homeowners who want to learn more about the ins and outs of reverse mortgages.

* Consult a financial advisor and appropriate government agencies for any effect on taxes or government benefits.

How it Works

Reverse mortgages work by allowing age-qualified homeowners to convert a portion of their home equity into cash without having to sell their home and or make monthly mortgage payments. As with any mortgage, borrowers must keep current with their property taxes, homeowners insurance, and maintenance.

In order to apply for a reverse mortgage, you must meet the minimum age qualifications (as young as 55 in select states) and live in the home as your primary residence. In addition, you cannot have any outstanding federal tax liens, must have made your property tax payments for the last two years, and your home must meet the minimum property standards set by HUD – however, you may be able to use your reverse mortgage proceeds to pay for the required repairs to meet them.

You can start the application process by calling Longbridge Financial or by filling out their online contact form. A reverse mortgage consultant will explain how reverse mortgages work and offer an estimate of how much you could receive with a reverse mortgage.

To apply for a reverse mortgage, you must have a Counseling Certificate from a reverse mortgage counselor. It's important to note that a reverse mortgage counselor is an independent third party approved by HUD and not affiliated with Longbridge or any other lending institution. This ensures that you receive impartial guidance that aligns with your best interests. This is an important step that certifies that you fully understand how a reverse mortgage works before you complete your reverse mortgage application. Longbridge Financial offers help with finding approved reverse mortgage counselors in your area.

Once you’ve completed your required counseling session, Longbridge Financial will work with an Appraisal Management Company (AMC) who will independently order an appraisal on your behalf. Once the appraisal is received, Longbridge Financial will make a loan offer based on your home’s appraised value, along with several other factors, including your age and current interest rates. Your loan terms can be tailored to your needs, depending on your product and preferred disbursement method for your loan proceeds.

The company aims to close reverse mortgages within 45 days of receiving your application and counseling certificate – and makes every effort to close even sooner. Your agent will provide regular updates on the status of your mortgage every step of the way.

If you have an existing mortgage, it will first be paid off as a requirement of the loan. Your home’s title will remain in your name, and you do not have to make any payments on your reverse mortgage until a maturity event such as when the final borrower moves out of the home or if you fail to meet the terms of the loan, including keeping current with property taxes, homeowners insurance, and maintenance.

Types of Loans

Longbridge Financial specializes in reverse mortgages, including the following:

  • HECM Reverse Mortgage: A reverse mortgage program specially designed for homeowners 62 and older, insured by the Federal Housing Administration (FHA) since 1988.
  • HECM for Purchase. A reverse mortgage option that helps you accomplish two goals with a single transaction – buying a new home while securing a reverse mortgage. Using proceeds from the sale of your current home, or cash on hand, you make a down payment on a new home and the remaining balance of the purchase is covered by your HECM loan proceeds. Any remaining funds can be used as you choose.

Longbridge Platinum Jumbo Reverse Mortgage: A Platinum loan is a non-FHA jumbo reverse mortgage for homeowners as young as age 55 (depending on the state) that offers more cash than a standard HECM reverse mortgage, with loan amounts up to $4 million (The state of MA has a maximum loan amount/lending limit of $2,000,000.) Platinum also offers a wide range of eligible home values, attractive lower-rate options, expanded eligibility for condos, and many of the same great features as a HECM.

All reverse mortgage product options listed above work by allowing qualified homeowners to convert a portion of their home equity into cash without having to sell the home or make monthly mortgage payments (keeping current with property taxes, insurance, and maintenance required). And, unlike a traditional mortgage where the borrower must begin repaying the loan right away, a reverse mortgage comes due only after a maturity event, such as when the final borrower no longer lives in the home. And all of these types of reverse mortgages offer non-recourse protection, meaning you will never owe more than your home is worth at the time it is sold and the loan is repaid.

Loan Features

Longbridge Financial’s reverse mortgage options offer flexibility, and the company focuses on ensuring that customers make informed financial decisions.

Multiple payout options. Homeowners can choose to receive a lump sum payment, monthly payments, a reusable line of credit, or a combination of these. (Borrowers who elect a fixed rate loan will receive a single disbursement lump sum payment. Other payment options are available only for adjustable-rate mortgages.)

  • No required mortgage payments. Borrowers do not need to make monthly mortgage payments so long as they keep up with property taxes, homeowners insurance, and maintain the home.
  • Non-recourse protection. With a HECM reverse mortgage, you (or your heirs) will not have to pay the lender more than the value of your home when it is sold at the time of repayment. This safeguard is called non-recourse protection. Under this protection, if your loan balance grows greater than the value of your home, the FHA will pay the difference when the home is sold at the time of repayment. In addition, the lender may not seek any assets other than the home to repay the loan and home maintenance costs.
  • Eligible non-borrowing spouse protection. An eligible non-borrowing spouse (NBS) is defined as an individual married to a reverse mortgage applicant and living in the home as their primary residence. If your spouse qualifies as an NBS, they can remain in the home even if you leave or pass away and continue to defer loan payment. Just as the case with any borrower, they will still need to keep up with loan requirements including paying property taxes, homeowners insurance, and maintaining the home.
  • Available to homeowners 55+. Platinum reverse mortgages are available to homeowners 55 and older in many states. Government-backed HECM reverse mortgages are typically limited to homeowners 62 and older.
  • Educational resources. Longbridge Financial offers detailed guides to reverse mortgages in both physical and digital mediums. They encourage customers to consult with their trusted advisors and loved ones prior to applying for a reverse mortgage. In addition, counseling is required as part of the loan process to ensure all applicants have a full understanding of the loan and all borrower obligations.
  • Available in all states. Longbridge Financial issues reverse mortgages in all 50 states.

Rates and Terms

Longbridge Financial does not publish rates, since these vary widely depending on the value of your home, your age, and economic factors. However, the company does not charge hidden fees and many origination costs can often be wrapped into the loan keeping upfront, out-of-pocket costs low.

All reverse mortgage products only need to be repaid when a maturity event occurs, such as when the final borrower passes away, moves out of the home, or sells the home. Reverse mortgages are typically repaid by selling the home, but could also be repaid through a traditional mortgage in certain circumstances or with cash.

Summary

Longbridge Financial is a leading national reverse mortgage lender that offers HECM, HECM for Purchase, and proprietary jumbo reverse mortgages. You can choose from multiple disbursement options and close your reverse mortgage in just 45 or less after applying. You must meet the minimum age requirements, own your home, and have sufficient equity in the home.

Longbridge Financial is licensed in all 50 states and offers excellent educational resources for homeowners who are new to reverse mortgages. In addition, the company is HUD-approved, has an A+ rating with the BBB, and excellent ratings with independent third-party review sites like Trustpilot.

Contact Longbridge Financial

Longbridge Financial offers live customer service by phone Monday through Thursday, 8 a.m. to 8 p.m. ET and Friday 8 a.m. to 5 p.m. ET You can learn more about reverse mortgages, get a free quote for your home, and apply over the phone.

Phone: (855) 523-4326

Email: info@longbridge-financial.com

Get started now, visit Longbridge
By Michael Graw
Michael Graw is a freelance journalist and photographer based in Bellingham, Washington. His interests span a wide range from business technology to finance to creative media, with a focus on new technology and emerging trends. Michael's work has been published in TechRadar, Tom's Guide, Business Insider, Fast Company, Salon, and Harvard Business Review.
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