American Senior Lending Launches EquitySelect, A First-Of-Its-Kind Nonrecourse Home Equity Loan

American Senior Lending, a national home equity solutions leader, has launched EquitySelect –  an innovative, nonrecourse, first lien home equity loan designed to advance the financial flexibility of Americans entering or in retirement.

EquitySelect sets itself apart from other solutions on the market through monthly payment choice and built-in protections for aging homeowners. Borrowers can choose their monthly payment plan—as low as an annualized 1%— allowing for minimum monthly payments that adjust based on a borrower’s loan balance.** Each loan offers a  lifetime monthly payment cap, ensuring monthly payments will never exceed a predetermined amount, even if interest rates rise or the borrower draws down their full credit line or pays below the full interest for the life of the loan..

Unlike traditional HELOCs, EquitySelect is nonrecourse, meaning borrowers and their heirs will never owe more than the home is worth. Qualification is based on the lifetime  cap, resulting in lower monthly payments  when determining debt-to-income ratio (DTI).

“Today’s financial challenges in retirement require reimagined financial solutions built on choice and innovation. We reimagined asset-based lending using home equity. We spent several years designing this product and building a web-calc to provide customized quotes within seconds,” said David Peskin, President and CEO of American Senior Lending. “Whether a homeowner is looking to consolidate debt, access the equity in their home for everyday needs, or the need to renovate an aging home, EquitySelect is redefining retirement home lending with a flexible, tailored, and affordable way to create financial flexibility.”

Home equity remains the largest asset for many older Americans. According to December 2024 estimates from Freddie Mac and the Federal Reserve, as much as half of the nation’s total home equity is held by homeowners age 61 or older. As near and current retirees living on fixed incomes face rising living and insurance costs, flexible borrowing options have become increasingly critical.

In a pilot program, a 75-year-old borrower qualified for a $300,000 EquitySelect loan, taking $150,000 at closing. Their initial monthly payment was just $126 for the first month and will not exceed $391 over the next 40 years, even after withdrawing the remaining balance, until the final balloon payment when the loan is due.

“EquitySelect is about giving homeowners more choice after being forced into an ‘either-or’ box for too long,” said Eric Ellsworth, Executive Vice President of Sales at American Senior Lending. “EquitySelect breaks that mold by combining desired features of existing mortgage products into one flexible, highly tailored financial solution. Feedback from our pilot broker partners confirms what we’ve long known: consumers want a more flexible way to access their equity.”

EquitySelect’s terms include no annual fees, no pre-payment penalty, and a fixed 40-year term  with a protected line of credit. A second-lien variation is also currently in development.