Reverse mortgages are increasing in popularity with seniors who have equity in their homes and want to supplement their income. The only reverse mortgage insured by the U.S. Federal Government is called a Home Equity Conversion Mortgage or HECM, and is only available through an FHA approved lender.
Obtaining a Reverse mortgage is becoming increasing in popularity with individuals 62 years of age or older can turn their equity from their property into cash. It is very important for any individual seeking this product to understand a what reverse mortgage is, their ramifications, and any of the alternatives. Our reverse mortgage experts will provide an overview of how to obtain a reverse mortgage in San Diego, Orange County, Los Angeles, San Bernardino, Riverside or anywhere else in California. The only reverse mortgage insured by the U.S. Federal Government is called a Home Equity Conversion Mortgage or HECM, and is only available through an FHA approved lender.
The Home Equity Conversion Mortgage (HECM) is FHA’s reverse mortgage program which allows you to withdraw some of the equity from your property. You choose how you want to withdraw your funds, whether in a fixed monthly amount or a line of credit or a combination of both. To learn more about the program click here.
You can also use a HECM reverse mortgage to purchase a primary residence if you are able to use cash on hand to pay the difference between the HECM reverse mortgage proceeds and the sales price plus closing costs for the property you are purchasing.
Counseling is required in order to obtain certain types of reverse mortgages. Counseling is required before an individual can obtain a Federally-insured Home Equity Conversion Mortgages (HECMs). Even if counseling is not required for a particular reverse mortgage, individuals thinking of getting a reverse mortgage should seek either counseling or the advice of a qualified financial adviser. This type of home loan can be difficult to understand, and someone thinking of doing a reverse mortgage should work with an experienced mortgage professional or lender that fully understands this product.