What exactly is a Reverse Mortgage Loan?
Our goal is for you to become completely informed about this versatile mortgage loan and make the best decision for you and your family based on your specific situation. Making a critical decision concerning one of your largest investments, the place that means the most to you, can be frightening. Determining if a reverse mortgage loan is right for you typically necessitates education and professional help. We hope you find the following information useful as you consider whether a reverse mortgage loan is best for you.
Reverse Mortgage Loans
There are various kinds of reverse mortgage loans. The two most popular are jumbo or private reverse mortgage loans for high-value homes and the HECM loan (Home Equity Conversion Mortgage, FHA-guaranteed).We are reverse mortgage loan experts and are here to help you explore your options and determine whether a reverse mortgage loan is best for you. Our objective is for you to have all of the information you need to make the best decision for you and your family as you learn more about the reverse mortgage loan. From start to finish, we strive to give world-class service.
Qualifications for Reverse Mortgage Loans
There are certain basic conditions to qualify for a reverse mortgage loan, such as:
At least one borrower (who will be on title) must be at least 62 years old (unless both borrowers are 62 at the time the loan closes in Texas).
The home must be used as the borrower's primary residence for at least 6 months out of the year.
The residence must have enough equity. While there is no precise amount of equity required, as a general rule of thumb, you should have at least 50% equity in your house because the loan profits will be used to pay off your existing mortgage.
The more equity you hold, the more loan proceeds you will have access to. When compared to regular mortgage loans, the underwriting conditions for a HECM (Home Equity Conversion Mortgage) are unusual.
All candidates are subjected to a financial evaluation to determine their financial capacity and willingness to meet loan requirements such as paying taxes and insurance.
Keep in mind that each lender's qualification requirements may fluctuate depending on a variety of factors such as your financial status, age, interest rates, house value, and other factors. In addition, you do not have to pay off your property in order to apply for a reverse mortgage loan.The age of the youngest borrower, the anticipated interest rate at the time, the mortgage option selected, and the home's appraised value all affect how much money you might receive. For example, an older person with a higher-value property will normally be eligible for more than a younger person with the same home value and predicted interest rate. The amount of money you can take in your first year is limited. Visit our reverse mortgage loan FAQs page for more information on distribution limits. reverse mortgage loan FAQs page. Contact us today for a no-obligation reverse mortgage loan evaluation.
¹There are some circumstances that will cause the loan to mature and the balance to become due and payable. The borrower is still responsible for paying property taxes, homeowner’s insurance, and maintaining the property to HUD standards. Failure to do so could make the loan due and payable. Credit is subject to age, income standards, credit history, and property qualifications. Program rates, fees, terms, and conditions are not available in all states and are subject to change.
²Borrowers should seek professional tax advice regarding reverse mortgage proceeds.
This material is not provided by, nor was it approved by the Department of Housing & Urban Development (HUD) or by the Federal Housing Administration (FHA). It is not intended to be a substitute for legal, tax, or financial advice. Consult with a qualified attorney, accountant, or financial advisor for additional legal or tax advice.
*There are some circumstances that will cause the loan to mature and the balance to become due and payable. The borrower(s) must continue to pay for property taxes and insurance and maintain the property to meet HUD standards or risk default. Credit is subject to age, minimum income guidelines, credit history, and property qualifications. Program rates, fees, terms, and conditions are not available in all states and subject to change.
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8050 Florence Ave. Suite 210
Downey, CA 90240
Phone: (949) 990-3185
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