A reverse mortgage is available if you are 62 years of age with enough equity in your home to qualify. The Federal Housing Administration [FHA] sets the standards for HECM loan qualifications. The FHA may change the qualifying standards in the future, but at this moment the basic requirements are being over 62 and having enough equity to borrow against it. How much you can borrow depends on other factors as well, including the type of loan you select, the value of your home, and current interest rates. It is a good idea to call and talk to someone on our team if you are looking for reverse mortgage information. Within a few minutes, we can usually answer many of your questions and determine whether you qualify or not.
If you want to stop paying your existing monthly mortgage payments, the saver and standard option may a good idea for you. You may also use proceeds from a HECM for purchase of another property; leveraging the equity in your home to buy additional real estate without having to pay back the loan every month or sell your home.
If you want to know how reverse mortgages work, it’s a good idea to pick up the phone and ask the questions that apply to your situation. In general, a HECM allows you to stop making mortgage payments and take additional cash out of your home if you want a lump sum or monthly income moving forward. A HECM is a loan that you will not have to pay back until you either decide to sell your home, move out of your home, or in the event of death your heirs will have the choice to pay back the loan or sell the home.
There are a number of HECM lenders with different guidelines and programs. HECM Loans are backed by the FHA, so limits and qualifying criteria are somewhat standard. Nonetheless, to know whether you qualify for a HECM, it is best to call and talk to someone on our team. Within a few minutes, we can usually answer many of your questions and determine whether you qualify or not.
Eligibility and Requirements
There are very simple HECM Eligibility Requirements: you must be at least 62 years of age, you must have equity in your home, and you must have enough money to cover your expenses and to pay your property taxes and homeowners insurance. In California, home values are very high compared to other states. It is possible that your home value is higher than the HECM loan limits set by the FHA; that will cap the amount that you can borrow. If you are looking for the maximum amount of cash to draw from your home, a proprietary loan may not have the same limitations of a HECM, and it may be a better option for you. Basic eligibility and requirements will be the same whether you choose a HECM or a proprietary loan.
A HECM is different than a home equity line of credit in one significant way: a HECM does not require monthly mortgage payments. If you want to know whether you have enough equity to qualify for a HECM loan, it is best to call and talk to one of our team members today. Whether you are looking for the maximum amount of cash from your home or you simply want to stop making monthly mortgage payments, our broker and our team of professionals will take the time to explain whether you qualify for a HECM, and which option makes the most sense for you based on your goals.
Steps to Apply for a Reverse Mortgage
Reverse mortgage interest rates are locked in when you are approved for your loan. Interest rates are at a historic low, so this is a very good time to submit a HECM application. If you want to know whether or not you qualify for a reverse mortgage, you should call today and talk to our team of professionals. HECM qualifications may change in the future, but now is a great time to convert your equity and take advantage of the value of your home. A HECM allows you to access your equity without having to sell or move or make any monthly payments. We will help you to reach your goals and simplify the process. We will meet with you face to face. We will take the stress out of this process and answer all of your questions. Find out if a HECM makes sense for you, call us to take the first step and apply for a HECM today.