LifeSource Mortgage proudly offers reverse mortgages in California, Colorado, and Idaho.
If you are a homeowner aged 55 years or older, you might qualify for a reverse mortgage. The equity you have in your home is essentially meaningless unless you can cash it out. This normally means selling your home or taking cash out with a traditional mortgage. A cash out mortgage would entail accepting a higher payment in lieu of the cash. Living expenses can be quite high in California, Colorado, and Idaho. So this may not be your best option.
Maybe you should consider a reverse mortgage. A reverse mortgage loan allows older homeowners to convert part of the equity in their home into cash that can actually be used to purchase goods and services.
Want more info about reverse mortgage? Call us at (949) 492-2252 x704 or Email us at; [emailprotected].
Types of Reverse Mortgages in California, Colorado, & Idaho:
At present, there are two types of reverse mortgages. There is the FHA insured reverse mortgage and proprietary reverse mortgages. LifeSource Mortgage does both types of reverse mortgages.
California, Colorado, & Idaho Reverse Mortgage Option #1:
The first reverse mortgage option available in California, Colorado, and Idaho is known more commonly as a reverse mortgage, but it’s technically called a Home Equity Conversion Mortgage. This type of reverse mortgage is insured by FHA / HUD and is available to homeowners aged 62 and up. These loans work really similarly to regular mortgages, except there are three tiny differences.
First, there is an age requirement. You have to be age 62 or older to qualify.
Secondly, there is an equity requirement. The percentage of your home value that you can borrow is different for every year ranging from age 62 up to 92 plus. The amount you can borrow increases a little bit with every passing year. Depending on your age and the market conditions, you can typically borrow anywhere from 52% to 74% of the value of your home.
Thirdly, there are no monthly payments required for as long as you live or for as long as you reside in your home. Since you still own your home, you’ll need to maintain and pay property taxes, insurance, HOA, and any other applicable housing expenses. The biggest monthly payment for most folks is the mortgage payment and that is no longer an issue when you use the reverse mortgage as a retirement tool.
With this reverse mortgage option, there are no credit score requirements or debt to income ratio requirements. However, we will review your housing and installment payment history for the last 2 years as well as your revolving (credit cards, etc) bill pay history for the last 1 year. It’s a pretty liberal system. Most people pass this financial assessment, but some people don’t. If you don’t pass the reverse mortgage financial assessment, you still may qualify for the loan, but you’d have to have a tax and insurance set aside (similar to an escrow account on a regular loan).
Want more info about reverse mortgage? Call us at (949) 492-2252 x704 or Email us at; [emailprotected].
California, Colorado, & Idaho Reverse Mortgage Option #2:
The second type of reverse mortgage available to California and Colorado (still awaiting approval in Idaho) residents is a proprietary reverse mortgage program. Although this loan is not insured buy HUD like the FHA version, it’s still a non recourse loan. This exciting option is a reverse mortgage loan for 55 year olds (and up).
Much of the qualifying features are the same, but it obviously has a lower point of entry at age 55. The financial assessment is similar, but with some slight differences.
Another differences is that the percentage of your home value that you can borrow is a little more conservative. The percentage you can borrower increases a little with each passing year. This program allows you to borrow about 27% – 40% of your home’s appraised value at age 55. At age 61 you can borrow about 34% – 47% of your home’s value.
Once you’re aged 62, you can qualify for the FHA reverse mortgage. However, this program is also an option and we’ll help you chose the perfect reverse mortgage option for your family.
Benefits of Reverse Mortgages for California, Colorado, and & Idaho Residents
- You still own your home if you do a reverse mortgage.
- Reverse Mortgages don’t require a monthly payment for as long as you live in your home (**you do still need to pay property taxes, insurance, and HOA if applicable).
- This loan if flexible. Although you don’t HAVE to make a payment, you can if you want to.
- You can still leave your home to your heirs.
- The money can be used how ever you like with no restrictions.
- Any funds you receive are tax free since they are considered loan proceeds and not income.
LifeSource Mortgage is headquartered in Orange County, CA. We are offering both the FHA insured reverse mortgage and the proprietary reverse mortgage options.
