Riverside Reverse Mortgage Specialist
If you are looking for more information regarding reverse mortgages or local reverse mortgage lenders in Riverside County we can help. Our licensed mortgage professionals can help provide you with all the information you need about the HECM reverse mortgage. The HECM constitutes over 90% of the reverse mortgages in the market, and the HECM or Home Equity Conversion Mortgage is the only one insured by FHA. Contact us and find out more about a reverse mortgage at 951-200-5750.
To qualify for a reverse mortgage in Riverside County California the applying senior must be 62 years old or older with equity in their home. The property must be an owner-occupied or primary residence in order to qualify. The home must be in good condition, and depending on the age of the HECM reverse borrower the cash available will vary. Below are some of the payment options.
For adjustable interest rate mortgages, you can select one of the following payment plans:
- Tenure– equal monthly payments as long as at least one borrower lives and continues to occupy the property as a principal residence.
- Term– equal monthly payments for a fixed period of months selected.
- Line of Credit– unscheduled payments or in installments, at times and in an amount of your choosing until the line of credit is exhausted.
- Modified Tenure– combination of line of credit and scheduled monthly payments for as long as you remain in the home.
- Modified Term– combination of line of credit plus monthly payments for a fixed period of months selected by the borrower. For fixed interest rate mortgages, you will receive the Single Disbursement Lump Sum payment plan.
- Single Disbursement Lump Sum – a single lump sum disbursement at mortgage closing.
There are many benefits to using a reverse mortgage, in order to be eligible for the FHA HECM reverse mortgage in Riverside California, your house must be a single family home or a 2-4 unit home with one unit being occupied by the applying individual . In addition, manufactured homes, and HUD-approved condominiums that meet the current FHA requirements are also eligible. The amount of cash or “equity” that the borrower receives varies by borrower and depends on, the age of the youngest borrower or non-borrowing spouse, and the current interest rate. The other variables are, the lesser of appraised value or the HECM FHA mortgage limit of $625,500 or the sales price, and Initial Mortgage Insurance Premium.
Like any type of other loan there are fees associated with these types of loans, and are paid through the loan without any “out of pocket” money. These fees consist of, a loan origination fee, third party fees (i.e., appraisal, inspection, lender title policy, etc.), FHA Mortgage Insurance Premiums, servicing fee, and interest. There is also mandatory counseling for every borrower who chooses to apply for a Riverside reverse mortgage.
Why is HECM Counseling required?
- To educate borrowers about using a HECM
- costs of obtaining the loan
- financial implications
- borrower obligations
- repayment conditions
The HECM borrower has obligations after the loan has been funded.They must continue to occupy the home as a principal residence. Pay Home Owners Association (HOA) fees, ground rents, etc. as well as property taxes. Also maintain a current homeowner’s hazard insurance policy, and maintain the property in the same condition it was when the loan was initiated.
Riverside cities that our reverse mortgage experts service:
Banning, Beaumont, Blythe, Calimesa, Canyon Lake, Cathedral City, Coachella, Desert Hot Springs, Eastvale, Hemet, Indian Wells, Indio, Jurupa Valley, Lake Elsinore
La Quinta, Menifee,Moreno Valley. Murrieta, Norco, Palm Desert, Palm Springs, Perris, Rancho Mirage, Riverside, San Jacinto, Temecula, Wildomar
In 1987, The Housing and Community Development Act got the ball rolling for these types of loans . This started the HECM or Home Equity Conversion Mortgage, and in 1988 (HUD) or known as the Department of Housing and Urban Development received the ability to insure these types of home loans through the FHA – Federal Housing Administration.
Unfortunately many seniors still don’t understand how a reverse mortgage work. According to the report, consumers are frustrated with their loan terms, servicing runarounds, and foreclosure problems.
“Consumer complaints tell us that the complex terms of reverse mortgages continue to be misunderstood,” said CFPB Director Richard Cordray. “As more baby boomers choose reverse mortgages to tap into their home equity, they need to understand the unique terms and features of this product. Our advisory can help those who have already chosen reverse mortgages to plan ahead for loved ones.”
If you are considering a reverse mortgage in Riverside California, have an expert who is used to explaining these types of loans assist you. Our reverse mortgage experts can provide you with the information you and your family needs to make a decision if a reverse mortgage is right for you. Doing a reverse mortgage in Riverside takes a few months from counseling to closing, so there is never any major rush. Take your time and research the pros and cons of a reverse mortgage, and fee free to call us and discuss your options at 951-200-5750.