The most common type of reverse mortgage is a loan insured by the Federal Housing Administration (FHA), also known as a HECM. This loan program allows you to access your home equity and turn it into cash. People everyday choose a reverse mortgage because it allows them to remain in their homes, as long as they meet the loan terms, and provides funds that can greatly supplement their retirement income.
With a traditional reverse mortgage loan, borrowers can access their home equity without having to pay principal and interest.* It’s called a “reverse mortgage” because, unlike a traditional loan where the borrower makes payments to the lender, the lender makes payments to the borrower. The loan is repaid when the last borrower or eligible non-borrowing spouse passes away or leaves the house
Many ask, "is a reverse mortgage a good idea?" While there can be speculation, our hope is that you become fully informed of this unique mortgage loan and ultimately make the best decision for you and your family given your unique situation.
It can be scary making a major decision about one of your biggest investments, the place that means the most to you. Deciding whether a reverse mortgage loan is right for you often requires education and expert advice. We hope the following information is beneficial as you explore whether a reverse mortgage is right for you.
A reverse mortgage is a unique loan that allows homeowner(s) 62 years of age and older to draw on the value of their home, which is paid to the homeowner(s) in a variety of payout options or used as a line of credit. One of the unique features of a reverse mortgage loan is that it does not require repayment until the homeowner(s) no longer reside in the residence, the last surviving borrower passes away, or does not comply with the loan obligations. An example of reverse mortgages or HECM guidelines / obligations are paying property taxes and insurance and maintaining the property to FHA guidelines (if the reverse mortgage is FHA's HECM loan).
There are different types of reverse mortgage solutions. The two most popular are the HECM loan (Home Equity Conversion Mortgage, insured by the FHA) and jumbo or proprietary reverse mortgage for high value homes. Prior to applying for a reverse mortgage loan, it is required that you are made aware of the terms and conditions of the loan through sources provided by HUD or your lender.
I started working in the real estate and finance industry when I was 16 years old. Over the last 20 years I have worked in almost every side of this business. When I first heard about reverse mortgages I was a skeptic. In fact because I was not educated on the loan product, I was negative toward any thought or mention of one. One day a family member asked me to sit down with her and go over her existing loan. When I arrived at her home I looked at her loan and realized it was a reverse mortgage. She explained to me why this loan worked for her. She said "Tomas this loan allows me the flexiblity to pay my mortage when I can or don't without penalty. She also said that she couldn't qualfy for a traditional cashout refinance and the lower income qualifcations for a reverse mortgage allowed her to get cash out. After that conversation over 10 years ago I started studying the reverse mortgage and know I can say whole-heartdly that is a great loan. This loan like any loan isn't for everyone. But for those that this loan makes sense, this is the best loan for them.
We are certified reverse mortgage specialists and are here assist you as you explore your options and whether a reverse mortgage solution is right for you. Our goal is that you as you learn more about the reverse mortgage you have all the information you need to make the best decision for you and your family. We aim to provide world class service from start to finish.
Thank you for visting and please call or email with any questions.
Call (310)-503-1017
