Got questions about reverse mortgages? You’ve come to the right place! Our “Ask the Pros” blog series is your inside track to understanding how Longbridge Financial is helping today’s homeowners unlock their home equity with confidence.
In this series, we go straight to the source—our team of experienced professionals who live and breathe reverse mortgages. From clearing up misconceptions to sharing real-world examples, our pros bring clarity, perspective, and practical advice to help you make fully informed decisions about your financial future.
In this installment, we sat down with Kristen Trum, Director of Wholesale Sales Operations at Longbridge Financial. Kristen sheds light on Platinum by Longbridge—our proprietary reverse mortgage product that offers greater flexibility and more options for today’s homeowners. Let’s dive into the Q&A!
Q: What exactly is a Platinum loan, and how does it differ from a traditional reverse mortgage?
A: Platinum is the name of our proprietary jumbo reverse mortgage program—and while it shares many similarities with traditional reverse mortgages (also known as a Home Equity Conversion Mortgages or HECMs), there are a few key differences.
Traditional reverse mortgages are insured by the Federal Housing Administration (FHA), whereas Platinum is not. And because Platinum isn’t bound by FHA guidelines (like the FHA lending limit), it allows us to be more innovative and flexible in how we structure the loans—ultimately meeting the needs of a wider range of homeowners.
At Longbridge, our mission is to provide innovative, responsible home equity solutions that help seniors live more comfortably in retirement. Platinum is just another valuable tool in that mission—helping older homeowners access their home equity in a way that truly fits their goals and lifestyle.
Q: Who might benefit most from a Platinum reverse mortgage?
A: Honestly, for me it’s easier to ask who wouldn’t benefit! First and foremost, Platinum can offer higher proceeds than a HECM, so it might be an option worth considering! But there are several other circumstances in your life that may make it the right fit for you.
Here’s who Platinum tends to serve best:
- Those below the HECM minimum age requirement. HECMs start at age 62, but Platinum is available to younger borrowers—as young as age 55 in some states.1
- Those with higher-value homes. Platinum loan amounts start at $450,000 and go up to $4 million2—well beyond the HECM lending limit set by the FHA.
- Those who own a condo. While condos are an acceptable property type for HECMs, there are FHA limitations. Platinum offers expanded eligibility to a wider range of property types.
- Those who want to preserve equity for their heirs. Our Platinum Preserve3 option allows them to retain 10–40% of their home equity to pass down to their estate.
In short, Platinum offers an alternative for homeowners looking to make the most of their home equity.
Q: What kinds of features or flexibility does Platinum offer that borrowers tend to appreciate most?
A: There’s a lot to love about Platinum. For starters, Platinum offers the same great benefits has a HECM. The most exciting benefit is that monthly mortgage payments are optional. You must, of course, keep up with your loan obligations including property taxes, homeowners insurance, and home maintenance.
Another great benefit is non-recourse protection—this means you can never owe more than your home is worth at the time of repayment when the home is sold. And finally, another important commonality is that there are no prepayment penalties, so you can pay off your loan anytime.
But beyond these standard but powerful reverse mortgage benefits, Platinum also comes with several additional features that really stand out:
- Exceptional flexibility. We review unique borrower scenarios and find creative solutions that fall outside traditional guidelines.
- Minimized upfront costs. There’s no upfront mortgage insurance premium (MIP) with Platinum, which can mean thousands in savings at closing.
- Equity preservation capability. Platinum Preserve3 makes it possible to maximize your home’s equity both today and in the years ahead.
- Simpler, faster condo approvals. Platinum offers a more streamlined condo approval process than HECMs, including the ability to approve units on a per-unit basis (versus the entire condominium complex).
- Our Platinum Promise.4 This promise protects your principal limit factor (loan amount) for 30 days from application. If market changes reduce your eligible amount and you opt out, we’ll reimburse your third-party fees—plus $150.
Together, these features make Platinum one of the most versatile reverse mortgage options available—built to meet homeowners where they are and help them move forward with confidence.
Q: Can you share an example of how homeowners have used a Platinum reverse mortgage to improve their retirement lifestyle?
A: Absolutely! At Longbridge, we know that after years of hard work, retirement should be something to look forward to, not something to worry about.
One of the best parts about reverse mortgages is that you can use the funds however you wish. We’ve seen homeowners use their Platinum proceeds to travel the world, help a grandchild through college, support a child with a first home purchase, make home improvements that allow them to stay in the comfort of their home as they age in place,5 and so much more.
At the end of the day, Platinum isn’t just about accessing equity—it’s about increasing your financial flexibility and securing greater peace of mind. And I believe that’s something you can’t put a price on!
Thank you, Kristen, for sharing your insider knowledge with us!
If you’d like to learn more about Platinum by Longbridge or to see if you qualify, contact our team today. We can walk you through your options and help determine whether Platinum—or another senior home equity solution—is the right fit for your goals.
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