Reverse Mortgage

California Reverse Mortgage Information

California Reverse Mortgage Information: What To Know

Many seniors across California are searching for basic information of the California reverse mortgage programs available. Information such as what reverse mortgage programs are available, what are the costs involved, are you required to pay the money back, are you required to move out of your house and probably many more questions than just those few. Just a few of the highlights of the California reverse mortgage programs include:

  • Not required to make mortgage payments as long as you live in the home
  • Access your cash in one of multiple ways: line of credit, monthly installments or a lump sum
  • Interest rates for the program can be either fixed or variable
  • California reverse mortgage counseling can be done by an FHA approved counselor over the phone and costs $125 and is paid to the California reverse mortgage counseling company
  • A California reverse mortgage appraisal is usually $350 and can be paid to the appraiser directly
  • All other fees and costs can be put into the California reverse mortgage

California Reverse Mortgage Program Highlights

The FHA reverse mortgage program is the most popular California reverse mortgage program and is a federally-insured home loan that allows California seniors to convert a portion of their home’s equity into cash. The equity can be paid to directly to the senior in any one of three ways:

  1. in one large lump sum
  2. in monthly term or lifetime payments
  3. in a line of credit held in an interest bearing account until the funds are needed

With a California reverse mortgage, unlike a traditional home equity loan or second mortgage, NO REPAYMENT of the loan is necessary, as long as the senior lives in the home.

California Reverse Mortgage Program Requirements

  • Seniors must be Age 62 years or older
  • You must have equity in the home to qualify
  • You must occupy the home as your primary residence
  • You must attend an California reverse mortgage counseling session (FHA counselor)
  • You must keep the home in good repair

All money that a senior receives from the California reverse mortgage is tax-free – so it is a great source of tax-free retirement income. And with the way that the economy is today, I think more than just a few seniors could use more tax-free retirement income.

California Reverse Mortgage: The First Step

For those seniors who are interested in learning if a California reverse mortgage is right for them, the first step is to be sure to speak with a loan officer who has experience in the FHA reverse mortgage programs and can explain how FHA reverse mortgages work. An experienced loan officer can then point out what the other steps are in the California reverse mortgage process and help answer any questions that you have along the way.

If you have questions about the California reverse mortgage program, contact one of our FHA reverse mortgage experts at the toll free number listed above.

April 26, 2009 0 Comments

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