Seniors
We assist seniors with HECM loans.
A Home Equity Conversion Mortgage (HECM) is the formal name for the government-backed loan known colloquially as a 'reverse mortgage' loan. HUD supports the Home Equity Conversion Mortgage, which could help qualified homeowners 62 and older increase their cash flow during retirement. There may also be private jumbo reverse mortgages¹ available in your area for higher-valued residences (often worth more than $1,000,000) that are not guaranteed by the FHA. Jumbo reverse mortgage loans are one-of-a-kind, with different features and requirements depending on the lender.
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How Do I Get a Reverse Mortgage Loan?
You must be at least 62 years old and own your home to be eligible for a reverse mortgage. You must have enough equity in your home to pay off any outstanding bills, and you must live in it as your primary residence. Minimum income and credit requirements must also be met. Consider living in your home without a regular monthly mortgage payment², or instead benefiting from monthly loan proceeds from the years you've invested in it. A reverse mortgage is a special mortgage created for homeowners aged 62 and up. You may have access to a portion of your house's value as well as the freedom and comfort of the home you've known for many years. It's your house; now put it to work for you. Borrowers with reverse mortgages keep ownership and title to their home². It's still yours, but you might benefit from the equity that's been accumulating in your home for years. Furthermore, because the Federal Housing Administration (FHA) insures HECM (Home Equity Conversion Mortgage) reverse mortgage loans and only your home and property serve as security for the loan, they give you peace of mind. To keep the home when the reverse mortgage is due, the heirs can pay out the existing outstanding loan total or 95% of the home's appraised worth, less usual closing expenses and real estate commissions. After you obtain a reverse mortgage on your principal property, payments is deferred until the home is sold, the final borrower dies or permanently leaves the home, or you fail to meet the loan terms.² Borrowers must also keep the house in excellent shape, pay property taxes, and maintain homeowner's insurance coverage in order to keep the loan from becoming due and payable. As a precaution, anyone considering a reverse mortgage must first seek counseling (from an independent HUD-approved third-party counselor) before incurring any loan charges (other than the counseling fee). While reverse mortgage proceeds are not subject to personal income taxation, borrowers should seek tax counsel on how they may affect government needs-based programs such as Medicaid and Medi-Cal.³
Facts About Reverse Mortgages
A reverse mortgage is a type of loan designed for homeowners aged 62 and up.
A reverse mortgage allows senior homeowners to borrow a portion of their home's value.
Borrowers keep title to and ownership of their home.²
Although the proceeds of a reverse mortgage are not taxed as personal income, borrowers should get tax counsel on how the funds may affect government needs-based programs such as Medicaid and Medi-Cal.³
It is not a government grant, but rather a loan that must be repaid when the home is sold or the final borrower dies or permanently moves out.
A reverse mortgage is only available for the borrower's primary or primary residence.
HUD counseling (from an independent HUD-approved third-party counselor) is required before the borrower incurs any loan charges.
A reverse mortgage loan is secured by a mortgage on the home, and noncompliance with loan terms may result in foreclosure.
¹We are a Mortgage Broker exclusively for the loans mentioned, not a mortgage lender or mortgage correspondent lender. We will arrange loans with third-party sources but will not directly fund the loans. For these loans, we will not make mortgage loan promises.
²Under certain conditions, the loan will mature and the balance will become due and payable. The borrower must continue to pay property taxes, homeowner's insurance, and keep the property up to HUD standards. Failure to do so may result in the debt becoming due and payable. Credit is conditional on age, income, credit history, and property qualifications. Loan rates, fees, terms, and conditions are subject to change and are not available in all states.
³Borrowers should seek professional tax guidance on the proceeds of a reverse mortgage. Borrowers are still required to pay property taxes, homeowner's insurance, and home upkeep charges.
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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Mortgage Specialists
NMLS #350697
8050 Florence Ave. Suite 210
Downey, CA 90240
Phone: (949) 990-3185
Work Phone: {949) 990-3185
Cell Phone: (949) 990-3185
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