"I finally feel a sense of financial freedom." - Stephanie Flores, Oceanside CA
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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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.
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:
Property Requirements The following eligible property types must meet all FHA property standards and flood requirements:
For adjustable interest rate mortgages, you can select one of the following payment plans:
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:
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.