Reverse Mortgage Loan Options - Accurate Reverse Mortgage Corp
San Diego HECM and Jumbo Reverse Mortgages
What is a reverse mortgage?
Reverse mortgage loans are a way for older homeowners to convert their home's value into tax-free cash, without having to sell or move. Homeowners who are 62 or older to borrow against the equity of their homes (for the fha-insured hecm product). There is also an option for borrowers as young as age 55 with the proprietary reverse mortgage loan.
Here’s how it works:
Qualifying homeowners can choose to receive tax-free payments from reverse mortgage either on a monthly basis, in a lump sum, or as a line of credit.
Underwriting will do a financial assessment to make sure things make sense and passes some basic tests.
No monthly repayments are required while a borrower lives in the home.
Reverse mortgage lenders recover the loan amount, plus interest when the home is sold (because owners choose to move, or pass away)
When the loan is paid in full, all equity associated with the property will be distributed to your heirs or the borrower at close of escrow from the sale.
Keep in mind:
Reverse mortgage borrowers continue to own their homes. Because there are no monthly loan payments due, the amount owed grows over time. That means that the amount and the remaining equity in the home decreases.
Borrowers must continue to pay homeowner’s insurance and property taxes during the loan period. It is also the borrower’s responsibility to keep up with repairs. In fact, if a borrower fails to adhere to any of these obligations, it may become immediate cause for the loan to become due. In which case, it would become payable in full.
Do I qualify for a reverse mortgage?
You must be age 62 or older (55 on some options) and you must occupy the home as your primary residence – for the majority of the year. Borrowers must own the home outright or have a low enough balance on the existing mortgage that it can be paid off from the proceeds of the reverse mortgage.
Each borrower listed on the title must apply for the reverse mortgage loan, attend a reverse mortgage counseling session and sign the loan application papers. The counseling is either handled in person, or over the telephone.
Does my home qualify for a reverse mortgage?
First of all, your residence must be appraised and reviewed. The reverse mortgage must also be the only mortgage held against the residence. That means that if there is a current mortgage on the property, it may be able to be paid off with the proceeds of the reverse mortgage.
Examples of qualifying homes:
Single Family One-Unit Residences
2-4 Unit Owner-Occupied Residences
These residences may qualify with certain restriction - call to inquire:
How is the loan amount determined?
The amount of the loan is based on:
The age of the youngest borrower
The appraised amount of the property
Current interest rates.
What are my reverse mortgage options?
HECM -- The Home Equity Conversion Mortgage (HECM) is the only reverse mortgage that is insured by the Federal Housing Administration (FHA). The FHA guarantees that HECM lenders meet their obligations, governs how much HECM lenders may loan to qualified borrowers, and limiting loan costs. Because this is a government insured loan program, loan counseling is required, by an approved HUD counselor.
HECM offers 4 draw options:
Monthly income for a fixed term, or life
Line of credit
Any combination of the above 3
Proprietary or "Jumbo" Reverse Mortgages -- These loans expand on what the HECM product offers by offering large loan amounts up to $4 million. They tend to be signed for higher valued properties - however they also can work for condos or other properties that don't fit HUD's HECM property requirements.
Reverse Mortgage Loan Options | Accurate Reverse Mortgage
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These materials are not from HUD or FHA and not approved by HUD or a government agency. Borrower is responsible for property taxes, homeowner’s insurance and property maintenance plus must continue to occupy home as their primary residence for loan to remain in good standing. Equal Housing Opportunity. Rates, Program, Fees, and Guidelines are subject to change without notice. Restrictions apply. Not a commitment to lend. Not all will qualify. Licensed to conduct business only in California. Accurate Reverse Mortgage Corp. 4025 Camino Del Rio South, Suite 321 San Diego, CA 92108. Licensed CA Bur of Real Estate – Real Estate Broker: Broker #02214678, 01353015. NMLS #2484031, 1004396