Figure Technologies, Inc. [1] (Figure), a California-based fintech [2] company creating products and tools that empower homeowners to improve their finances, has announced Figure Home Advantage [3], a sell-and-leaseback alternative to reverse mortgages [4] for retirees and a new way for Baby Boomers [5] to lock in record housing prices as they plan their retirement. With Figure Home Advantage, homeowners convert their home equity into cash they can put to use now while continuing to enjoy life at home without the ongoing burden of property taxes, repairs, and maintenance.
Roughly 10,000 Baby Boomers turn 65 years old in the U.S. every day. A study by the National Conference of State Legislators and AARP [6] found that 90 percent of people over age 65 want to stay in their home for as long as possible. However, most older Americans don’t have enough savings to cover retirement expenses or realize the lifestyle they’d imagined. According to a survey by the Insured Research Institute (IRI), only 25 percent of Baby Boomers believe they will have enough money in retirement.
"We’re building solutions to help Americans cope with this looming retirement issue," said Wendy Harrington, Figure CMO. "With rising interest rates, cash-out refinancing is an increasingly painful way to meet cash flow needs. Yet for homeowners nearing or already in retirement, home equity may be the most important source of money they have to support retirement. By unlocking hard-earned equity with Figure Home Advantage, homeowners can aid their retirement with additional funds and less stress."
Here's how Figure Home Advantage works. Figure buys the home and grants the seller(s) a lease that renews annually, putting the homeowners in charge of how long they stay. Homeowners get their proceeds in one lump sum to bolster their nest egg, cover their expenses, or fund what matters most to them. Figure takes care of the property management from there, covering property taxes, homeowner’s insurance, and ongoing maintenance.