presented by John Correll, CRMP – Certified Reverse Mortgage Professional in California

Are You Considering a Reverse Mortgage in California?   Essential Things to Keep in Mind

  

For many older residents in California, considering a reverse mortgage can be a smart financial move. With the state’s high living costs, funding retirement can be tough. A reverse mortgage can a allow an older homeowner who qualifies the ability to access part of their home equity and lower monthly living expenses. Whether they want extra income in retirement, help with medical bills, or a better lifestyle, exploring California’s reverse mortgage options can help secure their financial future. Still, it’s important to consult with financial experts and understand the terms and responsibilities to make the right choice for their unique needs.

California High Home Prices and Reverse Mortgages

  

In 2023, the median home price in California is well over $800,000 according to the California Association of Realtors.  This makes California one of the most expensive places in the county to live and can make retirement challenging.   If you are worried about money or the cost of everything in retirement, then perhaps you should take a deeper look into what a reverse mortgage is all about in California.

  

Leverage California Home Equity for a More Secure Retirement

   

For many Californians, their home is their most valuable asset, representing years of hard work and equity buildup. As they enter their so called “golden years” many want to maximize the potential of this equity. Adding home equity into their retirement planning can make a big difference.

  

One option to consider is a reverse mortgage, a specialized home loan product which is designed specifically for homeowners aged 62 or older. (some reverse mortgages can go as low as age 55) These dynamic loan choices can enable senior homeowners to utilize some of their home equity as a means to bolster their monthly income during retirement.

   

How a California Reverse Mortgage Works

   

A reverse mortgage is a type of home loan that can convert part of the home’s equity into accessible cash. Part of the reason they have become popular is that there are no monthly mortgage payments to make to the lender.   Instead the borrower simply has to occupy the home as their primary residence and continue to pay ongoing property taxes, homeowners insurance bills and other home expenses such as maintenance during the life of the loan.

  

Another highlight is that loan proceeds are disbursed tax-free, offering the borrower added financial security in their retirement years. If you’re interested in exploring if you qualify for a reverse mortgage in California, John Correll and his team are prepared to assist you. Feel free to get in touch with us via phone or request a quote to get started.  Give us a call at (888) 603-1550

  

HECM Reverse Mortgages in California vs the Rest of the United States

  

Reverse mortgage terms and conditions in California closely mirror those in other states, with a key distinction: home values. In California, many higher valued homes exceed the lending limit of the FHA insured HECM (Home Equity Conversion Mortgage). The HECM is the most popular and widespread type of reverse mortgage.  The federal lending limits on the HECM place a standardized formula and limit on how much funds the borrower can receive. The loan qualifications and lending percentages are standardized across the county on the HECM program including caps fees such as origination and a standardized way to compute mortgage insurance premiums.  But thankfully for California there is something called a Jumbo Reverse Mortgage which we will highlight next.

  

California – The Ideal State For Jumbo Reverse Mortgages

  

California is the perfect place for a Jumbo Reverse Mortgage because many residents have high valued homes with a lot of equity and these types of reverse mortgages can offer very large loan amounts. A jumbo reverse mortgage is sometimes called a “proprietary” reverse mortgage and is specifically designed to maximize the loan amounts for higher valued real estate.  This means the borrower can potentially get a larger loan amount using a jumbo reverse mortgage than they could with the FHA-insured HECM reverse mortgage. California has a diverse real estate market with plenty of options to choose from. Whether the goal is to boost retirement income, cover medical expenses, or improve lifestyle, a jumbo reverse mortgage in California can help many achieve their financial goals.  Jumbo reverse mortgages offer loan amounts up to $4 million.

 

Qualifications to Get a Reverse Mortgage in California

  

As with all mortgages, there are requirements to qualify.  While this is not a comprehensive list this gives a summary of the general requirements to get a reverse mortgage in California:

     

• Borrower must be age 62 or older for a HECM reverse mortgage (55 or older for a proprietary reverse mortgage) 
• Homeowner with substantial equity in their home
• Owner occupied home (must be the borrowers primary residence)
• Eligible property types: single family home, PUD (planned unit development), 1-4 unit property where borrower occupies one unit, HUD approved condominiums (exceptions for propriety loans) and some manufactured homes that meet guidelines.
• Financial assessment underwriting of credit history and income and expenses
• Complete counseling with a HUD approved housing counselor

     

Exploring Six Benefits of Reverse Mortgages in California

  

While this list only scratches the surface of some of the potential benefits of a reverse mortgage, here are 6 to consider:

 

1. Access to Home Equity: A California Reverse Mortgage can allows the borrower to tap into part of the equity  built up in their home over the years which can provide a valuable source of funds.
2. No Monthly Mortgage Payments: One of the significant advantages is the borrower will not need to make monthly mortgage payments as long as at least one borrower continues live in the home and fulfill requirements of continuing to pay the property taxes, homeowners insurance bills and other home expenses such as maintenance.
3. Flexible Ways to Receive Funds: Borrowers have flexibility in how they want to receive their funds, whether as a lump sum, line of credit, fixed monthly payments, or a combination, tailored to fit their financial needs.
4. Financial Freedom To Use Funds Anyway Desired: The funds received from the reverse mortgage can be used for various purposes, including supplementing retirement income, covering medical expenses, home improvements, or simply enjoying a more comfortable lifestyle.
5. Minimal Out-of-Pocket Expenses: The borrower can finance most of the closing costs and ongoing fees with the reverse mortgage proceeds, reducing the immediate financial burden at time of application.  Borrower will need to pay for the cost of counseling upfront which generally runs $150-$200.  Some companies require the borrower pay for their appraisal upfront while others will allow this to be financed into the loan – this is something borrower can shop around for when selecting a loan officer.   
6. Homeownership Retention: During the life of the loan, the borrower will retain ownership of the home and can live in it for as long as they wish (as long as they meet loan conditions such as occupancy requirements and paying ongoing property taxes, insurance and other maintenance costs). NOTE: The loan becomes due and payable upon maturity event such as death of last borrower or failure to keep taxes/insurance current.  At anytime, the borrower can even sell the home with a reverse mortgage if they wish and any remaining equity belongs to the borrower or their heirs.

 

  

Selecting a California Reverse Mortgage Lender and Loan Officer

    

The decision to select a reverse mortgage loan officer and company in California is an important one. When shopping around, it may be wise to find someone you feel comfortable working with and can answer all your questions.  Reverse mortgages do involve quite a bit of paperwork and the process can take 30-60 days in most cases so you want someone who can truly guide you and you enjoy working with without being rushed or pressured.  It is advisable to take into account factors like expenses, loan terms, the lender’s experience, and their commitment to your unique situation. Discover valuable tips for choosing the top reverse mortgage company in California.

• Experience and Expertise: Look for a company and loan officer with substantial experience in reverse mortgages. Their expertise can ensure you receive accurate guidance tailored to your unique financial situation.
• Reputation and Reviews: Research the company’s reputation by checking online reviews and testimonials. Positive feedback from previous clients can be a strong indicator of a reputable and trustworthy service.
• Licensing and Credentials: Verify that both the company and the loan officer are properly licensed and accredited. This ensures they adhere to industry standards and regulations, providing you with a secure and reliable experience.
• Loan Options and Terms: Evaluate the range of loan products and terms offered by the company. Choose one that aligns with your financial goals and offers flexibility in how you receive your funds.
• Customer Service: Assess the level of customer service provided by the company and loan officer. They should be responsive, attentive, and willing to answer all your questions, ensuring you feel comfortable and well-informed throughout the process.

  

Why Choose a California CRMP Certified Reverse Mortgage Professional?

 

Working with a Certified Reverse Mortgage Professional (CRMP) can offers several advantages:

• Expertise and In-Depth Knowledge: CRMPs are extensively trained and tested, showcasing their profound understanding of reverse mortgages. Their expertise ensures that you receive precise guidance tailored to your specific financial circumstances.
• Commitment to Ethical Standards: CRMPs adhere to a strict code of ethics. They are dedicated to providing transparent and knowledgeable advice throughout the reverse mortgage process.
• Up-to-Date Industry Insight: CRMPs remain well-informed about the latest industry regulations and trends. This ensures that you benefit from advice based on the most current information available.
• Personalized Solutions: CRMPs collaborate closely with you to comprehend your unique financial objectives and requirements. They can customize reverse mortgage solutions to align with your goals, offering you tailored financial options.
• Peace of Mind: Choosing a CRMP certified professional provides peace of mind, as you know you are working with a highly qualified professional committed to high standards. Selecting a CRMP can help to navigate the complexities of the reverse mortgage process with confidence.

John Correll, CRMP is a Certified Reverse Mortgage Professional in California

Hello,

  

My name is John Correll and I am not only local in California with over 25 years mortgage lending experience, but I also am one of the select few that have chosen to pursue the designation of CRMP – Certified Reverse Mortgage Professional.   I have an extremely deep commitment to delivering an exceptional customer service with each and every one of my clients.   If you visit my website or google reviews – you can read all the positive reviews my clients have had working with me.   

READ GOOGLE REVIEWS HERE   

READ HANDWRITTEN TESTIMONIALS HERE

If you are looking to explore what a reverse mortgage in California might offer you – I encourage you to reach out and give me a call or request an online quote.  I don’t pass my clients off to the “back office”, I work personally one-on-one with each of them from the initial call to loan closing and stay in touch for years beyond that.  My main #1 goal is to help educate people about reverse mortgages so they can decide if its an option that makes sense from them. 

I would love to have a conversation with you about ways home equity might help support your retirement goals.

  

You can reach me directly at (888) 603-1550

Sincerely,

John Correll, CRMP

Certified Reverse Mortgage Professional

Accurate Reverse Mortgage Corp.

4025 Camino Del Rio S. Suite 339 San Diego, CA 92108

Toll-Free:  (888) 603-1550    Direct: (619) 294-9820

License info:

NMLS 1004396, CA Dept. Real Estate Broker: 01353015