Longbridge and Figure partner to offer senior homeowners fast, flexible online access to a home equity line of credit — tailored specifically to meet the needs of borrowers 62 and older.
PARAMUS, N.J.--(BUSINESS WIRE)--Longbridge Financial, LLC (Longbridge Financial), a leading national lender and servicer specializing in home equity solutions for older Americans, today announced the launch of a first-of-its-kind home equity line of credit called HELOC For Seniors®, designed specifically for homeowners aged 62 and older. This innovative, online product offers fast approval and funding in as little as five business days, providing a streamlined path to access home equity powered by innovative technology via Figure Connect. With competitive, fixed rates for each draw1 and payments that can be comparatively lower than those of a traditional HELOC, borrowers can access an open-ended line of credit that offers interest-only2 monthly payments without a preset maturity date, while eliminating the risk payment spikes or surprises down the road.
“Too many older Americans are unable to access their own home equity, not because of poor credit, but because traditional lending products weren’t designed for life after 62,” said Chris Mayer, CEO of Longbridge Financial. “Over half of HELOC denials are tied to unaffordable monthly payments, and nearly one-third of seniors today carry mortgage debt into their 70s and 80s.3 We built HELOC For Seniors to offer a better way forward, offering the financial flexibility associated with a line of credit, but without sharply rising payments that come with traditional Bank HELOCs, or the higher base payments associated with closed-end second liens. So, retirees can live more comfortably, not more cautiously.”
According to the Federal Reserve Board, borrowers with traditional balloon-style repayment structures, which can be common challenges of traditional Bank HELOCs, are measurably more likely to default, even when controlling for income and credit history. For older homeowners, this risk is amplified by fixed budgets and a rising prevalence of mortgage debt later in life. According to the Joint Center for Housing Studies of Harvard University, over 7 million homeowners over age 65 pay more than 30 percent of their income on housing, with about half paying more than 50 percent of their income.4
"Longbridge turned to Figure Connect because of its industry-leading automation, standardization and speed. This partnership reflects a shared commitment to innovation and the opportunity for Figure’s marketplace to unlock capital markets solutions that solve meaningful problems,” said Michael Tannenbaum, CEO of Figure.
HELOC For Seniors helps fill a critical gap in the U.S. lending market, offering older homeowners an option that supports, not undermines, their long-term financial health. Its interest-only feature means that older borrowers are not forced to use limited income to pay down debt or face a preset date where the loan is called due and payable. This is true no matter how long a borrower chooses to live in their home, as long as the borrower meets the terms and conditions of the loan, which include remaining current on property taxes, insurance, and maintenance.
The HELOC For Seniors application process is a fully embedded digital solution thanks to a partnership between Figure Connect, a technology platform building the blockchain-based capital markets of the future, and Longbridge Financial. Most applicants can receive pre-approval in as little as five minutes, with final approval typically completed within 15 minutes. In many cases, closings can be finalized in as little as one week.
Unique Features of HELOC For Seniors:
Reduced Payments Offer Stability for Borrowers: Interest-only payment options can help homeowners manage their monthly costs by keeping payments lower throughout the life of the loan. These payments offer a predictable and manageable path to sustaining homeownership.
Borrowers Can Now Access Up to $400,0005 with a Fixed-Rate1 Per Draw: Older homeowners seeking to navigate uncertain times can now apply for loans up to $400,000 at a fixed interest rate per draw. The offering aims to provide borrowers with long-term financial predictability, eliminating the risk of sharp payment fluctuations tied to variable rates. Funds can be used for a variety of financial needs, such as renovations, funding aging-in-place or long-term care, and paying off high-interest debt.
Online Loan Approval and Funding Available in as Few as Five Business Days6: Borrowers can complete the entire loan application, e-Notary, and funding process online, receiving up to $400,000 in as few as five business days—all without leaving home.
Flexible Qualifications Available, Even for Borrowers on Fixed Incomes: Applicants with sufficient home equity and financial assets may qualify for loans, even if they rely on fixed income sources such as retirement income or disability benefits.
Open Ended Credit Line: Borrowers can draw between 80% and 100% of their available funds at a fixed rate per draw and redraw any paid-down principal payments up to a maximum number of 25 draws over a 10-year period. The line of credit provides financial flexibility not available with the more commonly offered first or second lien closed-end mortgages. Monthly payments are interest-only.
No Preset Maturity Date: The loan principal generally does not come due until the borrower permanently leaves the home, provided the borrower stays current on all required payments, including interest, property taxes and homeowners insurance, and appropriately maintains the home. This structure may result in lower monthly payments compared to existing mortgage products, depending on individual circumstances.
“The launch of HELOC For Seniors comes at an important time as older homeowners in the U.S. now collectively hold nearly $14 trillion in home equity,” said Mayer. 7 “Based on years of research and better understanding of the needs of older homeowners, HELOC For Seniors offers a more attractive alternative to traditional lending models that often fail to serve older Americans who are asset-rich but may be income-limited. Too many older homeowners can find themselves ineligible or poorly served by traditional mortgages simply because their income doesn’t fit the mold of younger owners. That’s why we designed HELOC For Seniors.”
HELOC For Seniors is now available in Arizona, California, Colorado, Florida, Georgia, Idaho, Massachusetts, New Jersey, North Carolina, Oregon, Pennsylvania, Utah, and Washington — with more states to follow soon. To learn more, visit HELOCForSeniors.com.
This offering is the latest addition to Longbridge’s suite of home equity solutions, joining both Home Equity Conversion Mortgage (HECM) loans and the company’s proprietary Platinum product suite, designed to help older homeowners responsibly access and leverage their home equity. As a company dedicated to meeting the unique financial needs of older homeowners, Longbridge remains committed to providing flexible, thoughtful options that aim to support older homeowners with greater choice, dignity, and confidence.
Sources and Notes: | ||
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1 | “Fixed rates” refers to each draw being made at the prevailing fixed interest rate available at the time of the draw. If the borrower elects to make an additional draw, the interest rate for that draw will be set as of the date of the draw and will be based on an Index, which is the Prime Rate published in the Wall Street Journal for the calendar month preceding the date of the additional draw, plus a fixed margin. Accordingly, the fixed rate for any additional draw may be higher than the fixed rate for the initial draw. | |
2 | As with any mortgage, borrowers must meet their loan obligations, keeping current with property taxes, insurance, and maintenance. | |
3 | Mayer, C. J., & Moulton, S. (2020). Research on HECM: Home Equity Conversion Mortgages. Retirement Income Journal. Retrieved from https://retirementincomejournal.com/wp-content/uploads/2020/10/Research-HECM-Mayer-and-Moutlton-9-20.pdf | |
4 | Housing America’s Older Adults, Joint Center for Housing Studies of Harvard University, Appendix Table W11. See https://www.jchs.harvard.edu/housing-americas-older-adults-2023. | |
5 | Loan amounts range from a minimum of $50,000 to a maximum of $400,000. Your maximum loan amount may be lower than $400,000, and will ultimately depend on your home value, lien position, title, credit profile, verified income amount, and equity available at the time of application. We determine home value and resulting equity through independent data sources and automated valuation models. | |
6 | Approval may be granted in five minutes but is ultimately subject to verifications such as income, employment, and property value, as well as verification that your property is in at least average condition with a property condition report. Five business day funding timeline assumes closing the loan with our remote online notary. Funding timelines may be longer for loans secured by properties located in counties that do not permit recording of e-signatures or that otherwise require an in-person closing or require a waiting period prior to closing. | |
7 | National Reverse Mortgage Lenders Association. "Senior Home Equity Hits $14 Trillion in Q2." October 7, 2024. https://www.nrmlaonline.org/about/press-releases/senior-home-equity-hits-14-trillion-in-q2 | |
About Longbridge Financial, LLC
Longbridge Financial (NMLS #957935) is a nationally recognized financial services company dedicated to helping older homeowners and retirees unlock the power of their home equity through flexible, responsible solutions tailored to support long-term financial well-being. Founded in 2012 and led by a respected Ivy League professor, Longbridge Financial combines deep industry expertise with a commitment to education, innovation, and transparency. The company is driven by a mission to empower aging Americans with the tools and insights they need to make confident financial decisions in retirement. Known for its exceptional customer service, competitive pricing, and professional integrity, Longbridge Financial is helping redefine what financial security can look like for today’s retirees.
For more information about Longbridge Financial or interview requests, please visit longbridge-financial.com/newsroom.
About Figure Technology Solutions
Founded in 2018, Figure Technology Solutions (“Figure”) is a blockchain–based technology platform built to enhance efficiency and transparency in financial services. Figure Connect is powered by the Provenance Blockchain, which onboards all of Figure’s loans, and is the world’s largest originator of Real World Assets. Its subsidiary, Figure Lending LLC, is the largest non-bank provider of home equity lines of credit; its software has been used to originate more than $15B of home equity. Figure’s technology is embedded across a broad network of loan originators and capital markets buyers and is used directly as well by homeowners in 50 states and Washington, DC. With Figure, homeowners can receive approval for a HELOC in as fast as five minutes and receive funding in as few as five days.
Contacts
Media Contacts:
Longbridge Financial, LLC
Trevor Chapman
PR@longbridge-financial.com
Figure Lending, LLC
Debra Jack
Press@figure.com