A SAFE REVERSE MORTGAGE LOAN

Is a Reverse Mortgage Loan Right for You?

A Reverse Mortgage loan is like a standard mortgage product only the monthly payments are taken out of your home equity. In the past a few unethical lenders offered products outside of Federal Housing Administration (FHA) standards and a small number of borrowers were burned. This led to widespread mistrust, and a lot of misinformation about Reverse Mortgages.

Today, abuse of this financial product rarely happens. Still, there are certain loan fees it would be good for you to know about because they can add up to thousands of dollars out of your pocket. Download the free Pdf (at right) to see what questions to ask your lender to save you money.

A reverse mortgage loan allows you to access a portion of your home’s equity to obtain tax-free funds without having to make monthly mortgage payments. If you’re 62 years of age or older and have sufficient home equity, you may be able to get the funds you need to:

  • Pay off your existing mortgage
  • Continue to live in your home and maintain title
  • Pay off credit cards, vehicle loans, medical bills, or other debts and improve your cash flow
  • Fund necessary home repairs or renovations
  • Build a “safety net” for unplanned expenses
  • Supplement your retirement income

HECM stands for: Home Equity Conversion Mortgage and is FHA language for a reverse mortgage loan. This product allows a borrower to convert home equity into income, a line of credit or to pull cash out of their home.

WestCAL Mortgage offers FHA insured HECMs; a safe, secure loan that lets you access your home’s equity for your funding needs. We also offer Jumbo Reverse Mortgages above FHA limits.

The amount you receive is based on current interest rates, the age of the youngest borrower and the lesser of the appraised value of your home, sale price or the maximum lending limit. The funds available to you may be restricted for the first 12 months after loan closing, due to HECM requirements. In general, the older you are, the more equity you have in your home and the lower your mortgage loan balance; the more money you can expect from a HECM loan.

Receiving Your Money

The HECM is available as either an adjustable or fixed-rate loan. With the adjustable rate, the rate is adjusted monthly or annually based on the LIBOR (London Inter Bank Offered Rate). The fixedrate HECM maintains the same interest rate over the life of the loan. .

Eligibility

Applying for a reverse mortgage loan is simple. To be eligible for a reverse mortgage loan, some key requirements are:

• Homeowner(s) must be at least 62 years of age

• Live in your home as your primary residence and have sufficient equity

• Be able to pay off your existing mortgage through the reverse mortgage loan proceeds

• Live in a single family home, two-to-four unit owner-occupied home, townhouse, approved condominium or manufactured home

Requirements

In addition to the eligibility requirements, you must also meet the following conditions to obtain a reverse mortgage loan:

• Complete a HUD approved counseling session

• Maintain your home to FHA requirements

• Continue to pay property taxes, home insurance

• You must still live in the home as your primary residence, continue to pay required property taxes, homeowners insurance and maintain the home according to Federal Housing Administration requirements.

• Your current mortgage, if any, must be paid off before obtaining any funds from a HECM loan; you can use proceeds from the HECM loan for this purpose.

• Not applicable to HECM for Purchase

• If your home needs repairs to be eligible for a HECM loan, you may be able to use the proceeds of the loan to accomplish this.

Repaying the Loan

Loan repayment is not due as long as you meet the loan obligations such as living in the home as your primary residence, continue to pay required property taxes and insurance, and maintain the home according to FHA requirements. You or your heirs will not be required to pay more than the value of your home at the time the loan is repaid; even if your loan balance exceeds the value of your home, provided you or your heirs decide to sell the home. Best of all, any remaining equity goes to you or your heirs once the loan is repaid.

Eligibility

Applying for a reverse mortgage loan is simple. To be eligible for a reverse mortgage loan, some
key requirements are:
• Homeowner(s) must be at least 62 years of age or older
• Live in your home as your primary residence and have sufficient equity
• Be able to pay off your existing mortgage through the reverse mortgage loan proceeds
• Live in a single family home, two-to-four unit4owner-occupied home, townhouse, approved
condominium or manufactured home
• Must meet financial eligibility criteria as established by HUD

Requirements

In addition to the eligibility requirements, you must also meet the following conditions to obtain
a reverse mortgage loan:

  • Complete a HUD approved counseling session
  • Maintain your home according to FHA requirements
  • Continue to pay property taxes and homeowners insurance
  • You must still live in the home as your primary residence, continue to pay required
    property taxes, homeowners insurance and maintain the home according to Federal Housing Administration requirements.
  • Your current mortgage, if any, must be paid off before obtaining any funds from a HECM loan;
    you can use proceeds from the HECM loan for this purpose.
  • Not applicable to HECM for Purchase
  • If your home needs repairs to be eligible for a HECM loan, you may be able to use the
    proceeds of the loan to accomplish this.

Repaying the Loan

Loan repayment is not due as long as you meet the loan obligations such as living in the home as your primary residence, continue to pay required property taxes and insurance, and maintain the home according to FHA requirements. You or your heirs will not be required to pay more than the value of your home at the time the loan is repaid; even if your loan balance exceeds the value of your home, provided you or your heirs decide to sell the home. You will not lose your home to the mortgage company. Any remaining equity goes to you or your heirs once the loan is repaid!

 

LINK TO FEDERAL TRADE COMMISSION (FTC)SITE

 Get unbiased information from the official US government site regarding Reverse Mortgages 

Link to FTC site

 

SPEAK WITH A REVERSE MORTGAGE EXPERT

Call Dan Eichhorn – Your Reverse Mortgage Expert Today!
Call now! 707 824-8081
Or email: Dan@WestCalMtg.com

 

Consult your financial advisor and appropriate government agencies for any effect on
taxes or government benefits.

Please Note: This material is not from HUD or FHA and has not been approved by HUD or a government agency.

 

Contact us today to see if a reverse mortgage is right for you!