Purchasing a Home with a Hawaii or California Reverse Mortgage

If you are a senior (62 or over) and are planning to relocate to Hawaii or California or downsize into a home that better suits your current or future needs, a Reverse Mortgage Purchase may be a perfect fit for you.

Important facts about Hawaii and California Reverse Mortgages:

Using the proceeds from the sale of your current home or cash on hand, you will make a down payment (usually 40% to 50% of the purchase price) on your new home.

The balance of the purchase is covered by your Reverse Mortgage or Home Equity Conversion Mortgage (HECM), and any remaining funds can be used as you choose.

As with any home, the homeowner is responsible for paying property taxes, insurance premiums, and maintenance of the home.

You own your homenot the bank!

You make no monthly mortgage payments on the new loan for as long as you or your spouse (if applicable) live in the home.

You can refinance or sell whenever you want, with no penalty.

Contact us for a consultation and have all of your Hawaii or California reverse mortgage questions answered today!

You’ll find out:
Do I qualify for a purchase reverse mortgage?
How much money can I get?
Is a reverse mortgage right for me?
How does a reverse mortgage work?
What kind of reverse mortgage products are available to me?

No Application Fee!

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.