Thrive in Retirement with a Reverse Mortgage

  • "I finally feel a sense of financial freedom." - Stephanie Flores, Oceanside CA

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  • "We were able to buy our dream home for retirement for far less than we expected!" - Mary Stimpson, Fallbrook CA

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  • "This program saved my home from a tax sale!" - Bob Davidson, Carlsbad CA

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  • "I was finally able to complete my home renovations without exhausting my savings." - Eric Nguyen, San Diego CA

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Could a Reverse Mortgage Change My Life?

Is a Reverse Mortgage the right option for me?

Figuring out if a reverse mortgage is the right option for you and your spouse may seem like a daunting task. It doesn't have to be. We have spoken to thousands of San Diegan homeowners over the past several years. We enjoy sharing the knowledge we have learned and providing you with the most useful and up-to-date information about reverse mortgages. Take our short Quiz to see if a reverse mortgage might be right for you!

Got Questions? We're Here to Help!

Get the Facts from Our San Diego Based Team

We know from experience that a reverse mortgage can be confusing. That's why we offer a free, confidential information kits. Truth is, a reverse mortgage isn't right for everyone, but you'll never know unless you ask. Because we are not a lending institution, our objective is not to pressure you into a sale. We aim to educate visitors about the reverse mortgage product with the utmost level of transparency, confidentiality and respect.

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Text message or call us to find out if a reverse mortgage is right for you. Connect today for your free information kit.

Reduce your living expenses?

Learn how a reverse mortgage can help reduce your monthly expenses and enjoy retirement.

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Thinking about your future?

A reverse mortgage can be a fantastic way to prepare for the uncertainties of tomorrow.

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Considering buying a home?

Purchasing your "forever" home with a reverse mortgage does not have to break the bank.

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Helping Mom and Dad financially?

A reverse mortgage is a great way to help keep Mom and Dad independent and secure.

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What is a Reverse Mortgage?

A reverse mortgage loan is designed as a tool for senior homeowners to access home equity in the form of tax-free cash. Unlike other home loan products, principal and interest payments to the lender are not mandatory. The loan becomes due and payable when the last borrower vacates the home as their primary residence. The Home Equity Conversion Mortgage (HECM) program is administered by the U.S. Department of Housing and Urban Development (HUD). The following excerpt is the description of the program as listed on the HUD website. It is provided here as a point of reference to our clients. If you have any questions please feel free to contact us directly.

Reverse Mortgage Information

There are many factors to consider before deciding whether a HECM is right for you. To aid in this process, you must meet with a HECM counselor to discuss program eligibility requirements, financial implications and alternatives to obtaining a HECM and repaying the loan. Counselors will also discuss provisions for the mortgage becoming due and payable. Upon the completion of HECM counseling, you should be able to make an independent, informed decision of whether this product will meet your specific needs. You can search online for a HECM counselor. There are borrower and property eligibility requirements that must be met. You can use the listing below to see if you qualify. If you meet the eligibility criteria, you can complete a reverse mortgage application by contacting a FHA-approved lender. You can search online for a FHA-approved lender or you can ask the HECM counselor to provide you with a listing. The lender will discuss other requirements of the HECM program, such as first year payment limitations, available payment options, the loan approval process, and repayment terms. Borrower Requirements You must:

  • Be 62 years of age or older
  • Own the property outright or paid-down a considerable amount
  • Occupy the property as your principal residence
  • Not be delinquent on any federal debt
  • Have financial resources to continue to make timely payment of ongoing property charges such as property taxes, insurance and Homeowner Association fees, etc.
  • Participate in a consumer information session given by a HUD- approved HECM counselor

Property Requirements The following eligible property types must meet all FHA property standards and flood requirements:

  • Single family home or 2-4 unit home with one unit occupied by the borrower
  • HUD-approved condominium project
  • Manufactured home that meets FHA requirements

Financial Requirements

  • Income, assets, monthly living expenses, and credit history will be verified.
  • Timely payment of real estate taxes, hazard and flood insurance premiums will be verified

For adjustable interest rate mortgages, you can select one of the following payment plans:

  • Tenure - equal monthly payments as long as at least one borrower lives and continues to occupy the property as a principal residence.
  • Term - equal monthly payments for a fixed period of months selected.
  • Line of Credit - unscheduled payments or in installments, at times and in an amount of your choosing until the line of credit is exhausted.
  • Modified Tenure - combination of line of credit and scheduled monthly payments for as long as you remain in the home.
  • Modified Term - combination of line of credit plus monthly payments for a fixed period of months selected by the borrower.

For fixed interest rate mortgages, you will receive the Single Disbursement Lump Sum payment plan. Mortgage Amount Based On The amount you may borrow will depend on:

  • Age of the youngest borrower or eligible non-borrowing spouse
  • Current interest rate; and
  • Lesser of:
    • appraised value;
    • the HECM FHA mortgage limit of $822,375; or
    • the sales price (only applicable to HECM for Purchase)

If there is more than one borrower and no eligible non-borrowing spouse, the age of the youngest borrower is used to determine the amount you can borrow. HECM Costs You can pay for most of the costs of a HECM by financing them and having them paid from the proceeds of the loan. Financing the costs means that you do not have to pay for them out of your pocket. On the other hand, financing the costs reduces the net loan amount available to you. The HECM loan includes several fees and charges, which includes: 1) mortgage insurance premiums (initial and annual) 2) third party charges 3) origination fee 4) interest and 5) servicing fees. The lender will discuss which fees and charges are mandatory. You will be charged an initial mortgage insurance premium (MIP) at closing. 

  1. Mortgage Insurance Premium You will incur a cost for FHA mortgage insurance. The mortgage insurance guarantees that you will receive expected loan advances. You can finance the mortgage insurance premium (MIP) as part of your loan.
  2. Third Party Charges Closing costs from third parties can include an appraisal, title search and insurance, surveys, inspections, recording fees, mortgage taxes, credit checks and other fees.
  3. Origination Fee You will pay an origination fee to compensate the lender for processing your HECM loan. 
  4. Servicing Fee Lenders or their agents provide servicing throughout the life of the HECM. Servicing includes sending you account statements, disbursing loan proceeds and making certain that you keep up with loan requirements such as paying real estate taxes and hazard insurance premium. At loan closing, the lender sets aside the servicing fee and deducts the fee from your available funds. Each month the monthly servicing fee is added to your loan balance. Lenders may also choose to include the servicing fee in the mortgage interest rate.

 


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Mortgage For Seniors

Phone: 858-633-6458   

Email: Info@mortgageforseniors.com

Our Office Is Located At:
7283 Camino Degrazia UNIT 12 92111

Office Hours: 8AM-5PM Mon-Fri