CircleLending Introduces Private Alternative to Reverse Mortgages
CircleLending has announced an innovative private lending product, Family Advantage that allows families to "arrange private loans that feature the benefits of traditional reverse mortgages without the drawbacks. Family Advantage loans are more flexible and eliminate many of the costs and restrictions those who need a reverse mortgage face."
Family Advantage is a line of credit funded by relatives or friends of a homeowner and secured by real estate. For many retired homeowners Family Advantage is a less expensive alternative to a reverse mortgage. CircleLending does not require mortgage insurance, origination fees, closing costs or set asides. The costs of setting up a Family Advantage loan are 1/3 the cost of a traditional reverse mortgage. Additionally, there are no age requirements, and CircleLending allows homeowners to borrow against any home, not just a primary residency.Family Advantage keeps property in the family while still generating a lump sum, a steady stream of income, or both. With a traditional reverse mortgage, the home must be sold or the outstanding mortgage paid off, but with a Family Advantage loan managed by CircleLending, the home can stay in the family.
“CircleLending’s Family Advantage product enables the homeowner to receive cash knowing that relative or friend – not an institution – is building equity in the home,” said Asheesh Advani, CEO of CircleLending. “From the lenders standpoint, if you plan to provide financial support to your parents, creating a Family Advantage loan may be the smartest way to do so. You can keep the family home in the family, and the financial and estate planning benefits are compelling.”
CircleLending provides documentation, professional service and complete record-keeping for every Family Advantage loan. To learn more about the Family Advantage Product, please visit www.circlelending.com.
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