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Graceful Finance rolls out Lifestyle Agreement for senior homeowners
The Lifestyle Agreement is available to people age 75 and older, and Graceful covers property taxes and insurance as it provides lump-sum and monthly payments.
Graceful Finance, a Florida-based firm, is offering a “Lifestyle Agreement” designed for senior homeowners who want retirement cash flow without taking on traditional mortgage debt, HousingWire reports. The product is modeled on home reversion contracts, which are more common outside the United States.
Under the Lifestyle Agreement, eligible homeowners sell their future ownership rights in exchange for a lump sum and or regular income, while retaining the right to live in the home for life with no mortgage or rent payments, according to HousingWire. Graceful also covers taxes and insurance tied to the property.
The agreement targets a higher age threshold than U.S. reverse mortgages, with eligibility beginning at 75, compared with 62 for Home Equity Conversion Mortgage eligibility and 55 for many proprietary reverse mortgages. Graceful calculates payment amounts based on the homeowner’s age, property value, and location, and homeowners can choose monthly payments for a fixed number of years or an upfront portion.
Graceful currently operates exclusively in Florida, with near-term plans to expand to California and Texas. Founder and CEO Anna Frankowska said high interest rates have hurt reverse mortgage origination and that the Lifestyle Agreement is intended to address those hurdles by aligning with the equity-based structure.