Maybe you’ve heard of a reverse mortgage. Maybe you’ve even done some research on them. Or maybe you’re scratching your head wondering what on Earth I’m talking about.

A reverse mortgage is a loan that is available only to senior citizens age 62 or older who own their homes. It is similar to a home equity loan in that it allows the homeowner to borrow against the equity in his home. The difference is in the way it is repaid. A home equity loan requires the borrower to make monthly payments or risk losing his home. A reverse mortgage, on the other hand, requires no repayment until the borrower moves out permanently, sells the home, or dies.

The house is usually sold to repay the reverse mortgage. If you get a reverse mortgage and then sell your home, the mortgage must be paid off. You keep the rest of the money from the sale. If you pass away while still living in the home, the house is sold and any funds remaining after paying off the reverse mortgage are distributed to your estate.

There are several ways that you can receive the proceeds of a reverse mortgage. They can be distributed in a lump sum, in monthly payments, or as a line of credit. You can even combine two of the methods of distribution to suit your needs. This flexibility is a key advantage of reverse mortgages.

The major requirements are:

• The borrower and any co-borrowers must be 62 years of age or older. If anyone whose name is on the title to the home is under 62, that person’s name must be removed.
• You must have sufficient equity in your home. If you have an existing mortgage, it must be paid off. This can be done with the proceeds of the reverse mortgage, but it will reduce the amount of funds available to you.
• The housing must qualify. It must be owner-occupied, and have four or fewer units. Some manufactured housing and most cooperative housing does not qualify, but most other houses and condominiums do.

There is no limit to the ways you can use the funds from your reverse mortgage. They can be used to make repairs to your home, pay health care costs, or help cover monthly expenses. You could use them to buy a car or even go on vacation. The flexible payment options facilitate the use of the funds in any way you wish.

Reverse mortgages are worth considering if you are a senior citizen who needs money for any reason. They allow you to use the equity in your home to get the cash you need, all without adding the burden of another monthly payment.

If you would like more information about the reverse mortgage process and how it can help you live out your retirement without the stress of financial burdens please call us at 415-971-8282 or send an email.

We will be happy to provide a complete complimentary analysis of the amount of money you could expect to receive from the best available products. If you are ready to get started, you can fill out our Quick No-Obligation Quote Form Here

If you would like more information about the reverse mortgage process and how it can help you live out your retirement without the stress of financial burdens please call us at 415-971-8282 or send an email.

We will be happy to provide a complete complimentary analysis of the amount of money you could expect to receive from the best available products. If you are ready to get started, you can fill out our Quick No-Obligation Quote Form Here

Reverse mortgages in San Francisco Bay Area are a type of mortgage that senior citizens can use to borrow against the equity in their homes. Here are some frequently asked questions about reverse mortgages and their benefits.

Q. How does a reverse mortgage work?

Only certain % of equity is available as maximum loan amount. This is subject to FHA loan limit guidelines.

Q. What can a reverse mortgage be used for?

Common uses for reverse mortgage proceeds include home repairs, property taxes, a new car, and supplementary income. But there is no limit to what you can get a reverse mortgage for.

Q. Who is eligible for a reverse mortgage?

In general, a senior meets the eligibility requirements if:

The youngest homeowner is 62 years or older.

The home is the primary residence.

The home has sufficient equity.

Q. What if I haven’t yet paid off my first mortgage?

If you have not paid off your traditional mortgage, you must pay it off before you can get a reverse mortgage. The reverse mortgage proceeds can be used to do so if there is sufficient equity, and if you have more equity than is needed to pay it off you can receive the difference.

Q. How is a reverse mortgage paid out?

You can receive your funds in a lump sum, as monthly payments for a specified time or the rest of your life, or as a line of credit. Some programs offer the option to combine two of these options. This flexibility is one of the greatest benefits of the reverse mortgage.

Q. Does my home have to meet any special requirements to qualify for a reverse mortgage?

Most owner-occupied dwellings qualify. Houses, condominiums, one to four unit dwellings, and some manufactured housing qualify. Most mobile homes and cooperative housing, however, do not qualify.

Most lenders require a home to be inspected before lending through a reverse mortgage. If any structural problems are found, they must be repaired. In most cases, the proceeds from the reverse mortgage can be used to accomplish this.

These are the answers to some of the most basic and commonly asked questions about reverse mortgages.

If you would like more information about the reverse mortgage process and how it can help you live out your retirement without the stress of financial burdens please call us at 415-971-8282 or send an email.

We will be happy to provide a complete complimentary analysis of the amount of money you could expect to receive from the best available products.

If you are ready to get started, you can fill out our Quick No-Obligation Quote Form Here

Home equity loans are often used by homeowners to consolidate debts. They put all of your debts into one convenient monthly payment with lower interest. But did you know that if you are a senior citizen, you can get a loan on your home that does not require monthly payments?

This type of loan is called a reverse mortgage. It allows seniors to leverage the equity in their homes to pay off other debts, make home repairs, pay property taxes or health care costs, or do anything else with it they wish. No payment is due until the homeowner moves out, sells the home, or passes away.

Approval for a reverse mortgage loan in San Francisco Bay Area is a fairly simple process, however, there are a few basic prerequisites:

You must be at least 62 years of age. If there is more than one name on the title to the home, all parties must be 62 or older. If one of the co-owners is under the age of 62, that person’s name must be removed from the title before a reverse mortgage can be obtained.

The home must be your primary residence. You cannot get a reverse mortgage on rental property or any other home you do not live in. This is because the balance of the loan is due once you no longer live in the home. Also, you must have enough equity in your home.

The home in question must qualify. Most single-family homes and condominiums, one to four unit owner-occupied residences, and manufactured homes (built after June 1976) qualify. But some mobile homes and most cooperative housing do not.

**Starting April 27, 2015, lenders will start conducting financial assessments of every reverse mortgage borrower to ensure he or she has the financial capacity to continue paying mandatory obligations, such as property taxes and homeowner's insurance, as stipulated in the Loan Agreement. Lenders will analyze all income sources -- including pensions, Social Security, IRAs and 401(k) plans -- as well as the person's credit history. They will look at how much money is left over after paying typical living expenses.

Once you have received a reverse mortgage, there are certain conditions that must be met to keep it. If these requirements are not met, you may be found in default and have to pay back the loan. They include, but are not limited to, the following:

You must pay your property taxes.

Your home must be properly maintained. Necessary repairs must be made to ensure that the home retains its value.

Just as with a traditional mortgage, you must keep your home insured. Homeowners insurance must be obtained to protect the lender’s interest in the home.

If you declare bankruptcy, you could be found in default.

You cannot abandon or donate your home to any person or organization.

If the home is condemned, you will likely have to pay back the loan.

Many contracts prohibit the owner from adding any new owners to the title of the home.

Most senior citizens age 62 or older who own their homes qualify for a reverse mortgage. As long as the home you wish to obtain a reverse mortgage on is your main residence and meets a few requirements, you can use it to get the money you need without incurring additional monthly payments. A mortgage originator can help you find the best reverse mortgage for your situation and get your finances where you want them to be.

If you would like more information about the reverse mortgage process and how it can help you live out your retirement without the stress of financial burdens please call us at 415-971-8282 or send an email.

We will be happy to provide a complete complimentary analysis of the amount of money you could expect to receive from the best available products.

If you are ready to get started, you can fill out our Quick No-Obligation Quote Form Here

Use Your Home to Stay at Home

The official reverse mortgage consumer booklet approved by the U.S. Department of Housing & Urban Development

Download

If you are ready to get started, you can fill out our Quick No-Obligation Quote Form Here