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Reverse Mortgage Overview
A reverse mortgage is a home loan for people age 62 and above that provides payment-free funds. It allows homeowners to safely and securely use a portion of their home equity without selling their home or taking on monthly debt payments. Rather than paying the bank, this type of mortgage is in reverse – the bank pays you.
The most common reverse mortgage program is the Home Equity Conversion Mortgage (HECM) which was designed by Congress in the 1980's. Most reverse mortgage programs today emulate the HECM. The U.S. Department of Housing and Urban Development (HUD) and the Federal Housing Authority (FHA) regulate and insure the HECM reverse mortgage in California and other states.
The Benefits of a Reverse Mortgage
- Get tax-free cash and make no payments for as long as you live in your home
- You maintain your home ownership and control of your title
- Use the funds to pay off your current mortgage, eliminating your monthly payments; remaining funds may be used for any purpose
- Money may be received monthly, as a lump sum, as a line of credit or any combination thereof
- Available line of credit grows like a saving account, at about 5% per year
- Conservative limits use only a fraction of home equity
- Leave your home and remaining equity to your heirs
- HECM Reverse Mortgage is insured by Federal Housing Authority (FHA)
- Security in know that you can never owe more than the home is worth
- Regulated by the US Dept. of Housing and Urban Development (HUD)
- Consult with independent, HUD-trained reverse mortgage counselors
The Requirements
- Minimum age to qualify is 62, with some exceptions
- Home must be the primary residence of the borrower(s)
- Reverse mortgage money must first be used to pay off any existing mortgages
- No credit, income or health requirements
- Amount of money available is based upon the homeowner's age, equity in their home and its location. Consult our Online Calculator for an estimate and to see if you qualify.
- Eligible property types include single family, condo, town-home, 2-4 unit building, some mobile / manufactured homes and stock cooperatives
The Reverse Mortgage Process
- Educate yourself about the basics
- Check our reverse mortgage calculator to see if you qualify and then request a free quote
- Review the quote and decide which reverse mortgage program is right for you
- Complete a 1 hour reverse mortgage phone counseling session (requested through us)
- Apply for the reverse mortgage, home is appraised, and loan is underwritten
- Sign the closing documents and the process is complete
Free Reverse Mortgage Benefit Statement
We invite you to request a free reverse mortgage quote so that you can review the top programs for your situation. Complete the form below and we will thoroughly review every California reverse mortgage program send you a detailed comparison within two business days. Feel free to call anytime at (toll free) 1-866-311-3360.
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