What is a LESA?
LESA (pronounced “Lisa”) stands for Life Expectancy Set-Aside. Simply put, a LESA set’s aside a portion of your reverse mortgage proceeds to pay future property taxes and homeowners insurance for the property.
How much is the LESA amount?
There is no fixed LESA amount. Each situation is different. The amount is determined by the homeowner’s annual property tax and homeowner insurance amounts, and the age of the youngest client.
Is a LESA right for me?
In some situations a LESA may be a qualifying requirement due to Financial Assessment (FA) guidelines. In other situations clients opt to take advantage of a LESA so they have the peace of mind knowing that, in addition to no mandatory mortgage payments, they don’t have to worry about property tax and insurance payments.
Although property taxes are inevitable and homeowners insurance is required, a LESA can help ensure funds are available to cover the expected expenses.