Possible first reverse proposal

I have 62 year old clients who asked about a Heloc to get funds to repay lawyer fees and expenses after a 1.5 yr employment arbitration case against his former employer. Both clients have job gaps but otherwise solid borrowers.

Not enough equity to do a HECM, so I am scouting possible proprietary reverses.

If Proprietary reverses cap the principal limit at 45%, then they will have to make some hard decisions about which of 1 of the 3 items they’d like to pay off.

I have played around with this scenario in the Reverse Mortgage Analyzer in LendsightAi, which is pretty cool.

But do you seasoned reverse Pros see anything simple that could bring this deal together for them?

Thanks in advance!

-Will

Here are the scenario details:

- State: Colorado

- Property: 1-unit, primary residence on 35 acres. 1939 County Rd 1A, Montrose CO 81403. A frame with a barn and shop.

- Estimated value: $1.5 M on Zillow, clients says it's worth $2.5M

- Existing 1st mortgage: $471,000. Existing 2nd: $299K

- Seeking as much as possible for: $415K in lawyer fees, $66K in credit cards, and [if possible] $350K for home renovations.

- Middle FICO: 720

- Employment gaps- He had a 1 yr employment gap during the arbitration case. She had a 15 yr employment gap to raise kids and take care of elderly parents before returning to work as a nurse 2 mos ago.

- Purpose: Cash-out to pay off lawyer fees, other debts, and provide funds for home renovations