Longbridge Financial has officially launched a home equity line of credit (HELOC) program that’s designed for homeowners ages 62 and older, offering approval and funding in as little as five business days.
The move marks an expansion beyond the company’s core reverse mortgage business while staying focused on older borrowers. This demographic collectively holds nearly $14 trillion in home equity.
Branded as HELOC for Seniors, the Longbridge product provides up to $400,000 at a fixed interest rate per draw, with funds available for uses ranging from home renovations and aging-in-place upgrades to long-term care or high-interest debt payoffs.
Borrowers can access 80% to 100% of the funds upfront and redraw up to 25 times over a 10-year period. Rates are updated at each draw, and qualification is available even for borrowers who rely on retirement income or disability benefits.
“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,” Chris Mayer, CEO of Longbridge Financial, said in a statement.
According to Mayer, more than 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. Traditional bank HELOCs usually come with sharply rising payments — a concern the HELOC for Seniors product seeks to address.
The product includes an interest-only monthly payment option and no preset maturity date, with the loan principal not due until the borrower permanently leaves the home, provided they remain current on all required payments.
The product, officially announced Monday but previewed by company executives during The Gathering by HousingWire in June, was developed using technology from Figure.
“This partnership reflects a shared commitment to innovation and the opportunity for Figure’s marketplace to unlock capital markets solutions that solve meaningful problems,” Figure CEO Michael Tannenbaum said in a statement.
The application process is fully online, with e-Notary capabilities. But the five-day timeline may be longer for properties located in counties that do not permit e-signature recording, requiring either in-person closings or a waiting period prior to closing.
In a statement, Longbridge claims “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.”
The product is available in Arizona, California, Colorado, Florida, Georgia, Idaho, Massachusetts, New Jersey, North Carolina, Oregon, Pennsylvania, Utah and Washington.
