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California Reverse Mortgage Qualifications

Eligibility Requirements

The eligibility requirements to obtain a Reverse Mortgage are quite simple.

Reverse Loan Qualification:

At least one homeowner on title must be age 62 or older and occupy the property as their primary residence.
Any existing mortgage balances must be small enough to be paid off by the reverse mortgage, or the balances must be paid or negotiated down.
The property must be a: single-family home; two, three or four unit dwelling; Town-homes; detached homes, condominiums, planned unit developments (PUDs) and some manufactured homes are eligible.
The home must meet HUD minimum property standards and, in some cases, necessary home repairs can be made after the closing of a reverse mortgage.
There are NO income, employment, savings and minimal credit qualifications (credit scores do not count).

Determining Reverse Mortgage Loan Amounts

Loan amounts vary and are based on several factors. Please review the following factors and if you have any questions, give us a call toll-free at (800)630-0650.

The maximum amount that can be borrowed is based on the following factors:

The age of the youngest homeowner.
The appraised value of the home.
The interest rate on the new reverse mortgage.

In general, the more your home is worth, the older you are, and the lower the interest rate, the more you’ll be able to borrow

Costs can be Included in your Loan
All of the normal loan costs can be included in your loan balance. Just like a standard mortgage loan, reverse mortgage costs include appraisal, credit report, title insurance, legal fees, loan origination, recording fees, and any other fee required by State or Federal law.

Interest Charges

Variable Rate – The interest rate adjusts monthly and is tied to the LIBOR index plus a margin. Just like a home equity line, you are not charged interest on money that has not been withdrawn.
Fixed-Rate – The interest rate on the fixed-rate HECM reverse mortgage is fixed for the life of the loan, with rates as low as 5.56% (call for current rates). Unlike the variable rate option, the fixed-rate HECM requires that the borrower(s) take all of the money available at the time the loan closes.

Accessing Funds
You have unique needs and you may prefer to get the entire amount upfront, while others would prefer a steady monthly payment. Regardless of your needs, you can get your money however you wish and change the loan distribution as often as you wish to accommodate changing needs.

Reverse Mortgage Distribution Options

Lump Sum – Cash is immediately available
Term – Equal monthly payments for a fixed period of months selected.
Tenure – Equal monthly payments as long as at least one homeowner lives and continues to occupy the property as a principal residence.
Line of Credit – A credit line which the customer can draw upon as he or she wishes.
Combination – A combination of the above plans.

Questions? Contact us or call Toll Free 1-800-630-0650

Reverse Mortgage | Using Reverse Mortage in California