Buying a Home in California with a Reverse Mortgage
Unlocking Your California Dream with Reverse Mortgage Purchase:
If you’re a senior aged 62 or over, contemplating a move to California or considering downsizing for a home better suited to your needs, the Reverse Mortgage Purchase loan may be the ideal solution.
Continue reading to learn about the basic terms and program highlights for Reverse Mortgages in California.
Explore the Basics and Program Highlights:
Our experienced team at Pacific Home Loans recognizes the nuances of the California real estate market. We are committed to offering personalized guidance throughout the reverse mortgage process, ensuring you make informed decisions for a successful financial journey in the picturesque landscapes of California.
Key Considerations:
- Proceeds Utilization: Use proceeds from the sale of your current home or available cash (typically 40% to 50% of the purchase price) as a down payment on your new home.
- Reverse Mortgage or HECM: Cover the remaining purchase balance with a Reverse Mortgage or Home Equity Conversion Mortgage (HECM), with surplus funds available at your discretion.
- Responsibilities as a Homeowner: Manage property taxes, insurance premiums, and home maintenance responsibly.
- Ownership Retention: Maintain ownership of your home – you own your home, not the bank.
- Eliminate Monthly Mortgage Payments: Enjoy freedom from monthly mortgage payments on the new loan for as long as you or your spouse (if applicable) reside in the home.
- Flexibility of Refinance or Sell: Have the flexibility to refinance or sell at your discretion without incurring penalties.
Consultation and FAQs:
For a comprehensive consultation and answers to your questions about reverse mortgages, reach out to us at 1-866-389-2778. During our discussion, we can address inquiries such as:
- Do I qualify for a purchase reverse mortgage?
- What is the potential funding amount?
- Is a reverse mortgage suitable for my circumstances?
- How does the reverse mortgage process function?
- What types of reverse mortgage products are available to me?
Rest assured, there is no application fee. We look forward to assisting you with valuable insights tailored to your specific needs, making your reverse mortgage experience seamless and informed.
This material is not from HUD or FHA and has not been approved by HUD or a government agency.
This general information is NOT a substitution for the advice of an attorney, accountant, and/or financial planner. Before you decide to pursue a reverse mortgage, you should carefully consider your individual circumstances so you can make a wise decision about the most valuable asset you may own—your home. Factors to consider include whether the proposed reverse mortgage is a recourse or nonrecourse loan, whether the loan would have a fixed or adjustable interest rate, and/or the current and projected market value of your home.
The lender will charge an origination fee, a mortgage insurance premium, closing costs or servicing fees for the reverse mortgage, all or any of which the lender will add to the balance of the reverse mortgage loan.
The balance of the reverse mortgage loan grows over time and the lender charges interest on the outstanding loan balance.
At the conclusion of the term of the reverse mortgage loan contract, some or all of the equity in the property that is the subject of the reverse mortgage no longer belongs to the person and the borrower may need to sell or transfer the property to repay the proceeds of the reverse mortgage from the proceeds of the sale or transfer or you must otherwise repay the reverse mortgage with interest from other personal assets. In order to retain the home when the reverse mortgage becomes due that (1) the consumer or the consumer’s heirs or estate must pay the entire loan balance and (2) the balance may be greater than the value of the consumer’s home.
The consumer retains title to the property that is the subject of the reverse mortgage until the person sells or transfers the property and is therefore responsible for paying property taxes, insurance, maintenance and related taxes. Failing to pay these amounts may cause the reverse mortgage loan to become due immediately and may subject the property to a tax lien or other encumbrance or to possible foreclosure.
Interest on a reverse mortgage is not deductible from the consumer’s income tax return until the consumer repays all or part of the reverse mortgage loan.
