Anyone in California who is over the age of 62, or approaching it, has probably heard the term “reverse mortgage” as a possible finance option. While the term might be regularly mentioned by the banks and lenders, how many people actually know what it means? And for those searching for a reverse mortgage in California in particular, where can you find one?
This article will look at answering both of these questions.
What is a Reverse Mortgage Loan?
There are so many different home loans and finance options available in the modern world that it can get very confusing. At times it feels like one needs to be a trained accountant to understand them all.
A reverse mortgage is available to Americans who are 62 years of age or above. Below that age bracket you are not eligible to apply. This type of mortgage is also commonly known as a home equity conversion mortgage (HECM). In order to meet the criteria, homeowners must have amassed enough equity in their home and also wish to use this equity to supplement their financial situation in retirement.
Reverse mortgages differ from a conventional mortgage as in they are not a “forward” mortgage. No repayments are required as the lender is actually making regular payments to the borrower instead of the other way around. These types of mortgages were introduced as an alternate method of helping those in their twilight years obtain a better quality of life throughout retirement without having constant money worries.
California Reverse Mortgage Requirements
Just being 62 or above does not instantly qualify someone for a reverse mortgage. There is select lending criteria that each and every applicant must meet, such as:
- 62 years old or above
- The home must remain the primary place of residence
- Homeowners remain responsible for taxes and insurance
- The home must remain in good condition and be well maintained while under a reverse mortgage
- The home needs to be owned outright, or only have one or two small repayments remaining on the regular mortgage
- A financial assessment will be undertaken for borrowers
- A counselling session is required with an approved HUD counsellor
- Eligible houses are single family homes, or approved manufactured homes and condominiums
Finding a Reverse Mortgage in California
California is a great state to retire in, with it’s sunshine and beaches and the mountains to the east, but retirement in this awesome state is not as much fun without a steady income stream. A reverse mortgage can give you that, setting you up for the life of leisure and pleasure that you deserve. Whether you are looking for a….
- Reverse mortgage Los Angeles
- Reverse mortgage San Diego
- Reverse mortgage San Francisco
- Reverse mortgage Sacramento
….you will be seeking reputable reverse mortgage companies in California that make the process easy and will help to take care of you in your well-deserved retirement.
The easiest way to find reverse mortgage lenders in California is to do some research online first. This saves a lot of time and negates the hassle of physically going from lender to lender in the hunt for information.
Most banks and other lenders will have finance calculators on their websites, and many have ones specifically designed for a reverse mortgage. It’s simply a matter of inputting data such as:
- Zip code
- Home value
- Your age
Some other optional data may be required. The calculator will then determine your eligibility for a reverse mortgage in California as well as giving you a guideline as to how much money you qualify to receive in regular payments.
Try the calculators on different lender’s websites, find the deal in your local area that looks the best, then make an appointment to meet with the manager.
Just about all the major banks and finance institutions offer reverse mortgages in the California area. It’s just a matter of doing your due diligence and first researching which one is right for your circumstances, then negotiating the very best deal. In some cases enlisting the help of an experienced and qualified finance broker will ensure you receive the best possible outcome.
It’s your future. Take control of it with a California reverse mortgage.