A reverse mortgage is a unique type of loan used by older Americans to convert the equity in their homes into cash. The money from a reverse mortgage can provide seniors with the financial security they need to fully enjoy their retirement years. The reverse mortgage has earned its name because the payment stream is “reversed.” Instead of making monthly payments to a lender, as with a regular first mortgage or home equity loan, a lender makes payments to you. The money from a reverse mortgage can be used for anything from daily living expenses to home repairs and home modifications, help pay for in-home medical care instead of moving to an assisted living facility, pay for trips or vacations, help fund your grandkids college tuitions, the options are endless.
Reverse Mortgage Qualifications
To qualify for a reverse mortgage you must be at least 55 and own your own home. There are minimum income requirements to qualify. (Typically you only need to show enough income to be able to pay for your property taxes, insurance and HOA if you have one.) You may be eligible for a reverse mortgage even if you still owe money on a first or second mortgage. In fact, many seniors get a reverse mortgage to pay off a first mortgage. Best of all, you can also use a reverse mortgage to purchase a home. All you do is put down the required down payment from the reverse mortgage calculator and you can live in your home without having to make any payments.
There are a few different options that you can choose from, for example a line of credit which can be used whenever you need money and while the money is sitting in your line of credit and not being used, it earns interest based on the current note rate and the balance grows, which allows you to borrower more as need. Another option is to get a fixed rate and borrow all the money at once. This can all be decided after we figure out the best option that works for you.
If you do pass away, the house goes to your heirs, not to the bank. Your heirs can decide to keep house, sell it or pay it off. Please give us a call at 661-964-2600 and we’d be more than happy to explain everything in more detail. You also are required to take a HUD approved Reverse Mortgage counselling course that will also go over all the details of how this type of loan works.
Here at Southern Oaks Mortgage, Inc., we cover the entire State of California, including some of the areas where we have specifically done loans in: Valencia, Newhall, Saugus, Canyon Country, Castaic, Val Verde, Santa Clarita, Stevenson Ranch, Acton, Aqua Dulce, Lancaster, Palmdale, Los Angeles, Griffith Park, San Fernando Valley, Northridge, Chatsworth, Granada Hills, Encino, Tarzana, Woodland Hills, North Hills, West Hills, Canoga Park, Winnetka, Van Nuys, North Hollywood, Studio City, Beverly Hills, Pacific Palisades, Toluca Lake, Panorama City, San Jose, San Francisco, Fresno, Sacramento, San Diego, Long Beach, Oakland, Santa Ana, Anaheim, Westlake Village, Thousand Oaks, Simi Valley, Long Canyon, Moorpark, Conejo Valley, Agoura Hills, Calabasas, Bakersfield, Riverside, Stockton, Chula Vista, Irvine, Glendale, San Bernardino, Burbank, Huntington Beach, Oxnard, Oceanside, Garden Grove, Mission Viejo, Ontario, Pomona, Santa Rosa, Salinas, Pasadena, Corona, Torrance, Escondido, Orange, Fullerton, El Monte, Hollywood, West Hollywood, Palos Verde, Palos Verde Pennisula, Inglewood, Santa Clara, Costa Mesa, Downey, West Covina, Victorville, Norwalk, Carlsbad, Laguna Niguel, Laguna Hills, Newport Beach, Newport Dunes, Temecula, Murrieta, Compton, Westminster, Whittier, Santa Barbara, Santa Monica, Hawthorne, Alhambra, Buena Park, Lakewood, Indio, Vernon, Merced, Napa.