Facts About FHA HECM Loans In San Bernardino and Pomona CA

The body slows down with time and is often susceptible to a host of age related illnesses. Obtaining the right treatment and continuing to enjoy the same life style post retirement becomes rather difficult on a meager income and limited savings. Seeing the money dwindle slowly but steadily is sure to have the senior citizens worried. However, their self owned home is likely to come to their aid in times of need by providing with the required amount of money via reverse mortgage loan.

It is not a traditional form of loan where the borrower needs to repay the amount within a specified period of time along with an interest. On the contrary, this type of loan or FHA HECM loans in San Bernardino and Pomona CA will actually pay the borrowers based on the equity of their homes. Although the notion sounds to be too good to be true, there are a lot of regulations to adhere to with strict eligibility conditions laid down by the FHA. There is absolutely no need to run from pillar to post trying to make sense of the necessities in order to apply for it. Contacting a well reputed and experienced reverse mortgage broker in San Bernardino and Pasadena CA would be enough.

What is a Reverse Mortgage Loan actually though? Also known as ‘home equity conversion mortgage (HECM),’ it happens to be a kind of loan meant for the elderly population above 62 years of age. The eligible individuals can convert the equity on their home into ready cash, a line of credit or a series of monthly checks paid regularly to the homeowner.

Salient facts about HECM

Security – The homeowner does not have to provide any sort of security save the home that is being used as the residence. The lender, however, is equipped to sell the house in event of the death of the owner or inability to live within it.

Credit Rating- While almost all loan requirement depend heavily on the credit ratings of the concerned individual, the possibility of obtaining reverse mortgage is not hampered by one’s credit score. The present financial condition does not matter either. Nor is there a compulsion for maintaining a specific credit score contrary to those of conventional loans.

Loan to Value Ratio- The security based on the financial status of the borrower along with the value of the property provides the traditional lenders with an edge over the FHA when it comes to offering a loan. A conventional loan amount may even be equal to the property value. However, the persons hoping for a reverse mortgage can only expect about 50% to 60% of their home value to be converted into cash or line of credit.

However, the most important aspect while calculating the amount of the loan happens to be the age of the borrower. In short, a reverse mortgage amount is likely to be much higher for an older person than a relatively younger one with a better life expectancy.

Salient Points About Reverse Mortgage Loan In Ontario And San Bernardino CA

The term ‘loan’ is not a rarity with almost everyone understanding what it means and often hoping for one. However, the notion of the payments being extended to the borrower is sure to perplex people especially the senior citizens who are qualified to approach reverse mortgage lenders in San Bernardino and Ontario CA as long they happen to be homeowners.

Living in a big house may lift the anxiety of having to pay a rental regularly but maintaining a property is difficult too, especially for elderly people who do not have a sizable amount of income coming in anymore. Asking for a reverse mortgage loan in Ontario and San Bernardino CA seems to be an ideal way of reducing the financial burden that does not need one to sell off the home and move to an inexpensive housing quarter.

The idea of the lender paying the borrower seems to be too good to be true. However, it is certainly not advisable to jump at the offer without considering the pros as well as the cons for there are a few pitfalls in the way.

Highlights of Reverse Mortgages

• Payments– There is no standardized payouts available though. In fact, ‘Federal Housing Administration (FHA)’ offers five different payment options for the individual opting for reverse mortgage loans. Getting the payouts at the beginning or end of each month is highly popular as the money will keep coming until the owner dies or shifts base. However, one can also accept the payments for a specific number of years in spite of continuing to reside at home. Many borrowers prefer a line of credit that offers them the advantage of getting certain amounts of money as and when needed.
  
• Equity – Having a sizable equity on one’s home does not make the owner qualified for an equivalent amount of money though. On the contrary, the total amount to be paid to the home owner depends on the age of the applicant, the current interest rates as well as the valuation of the property. The person seeking mortgage would also have to pay for a mortgage insurance and specific fees pertaining to reverse mortgage.
  
• Risks- Sure, there are a number of unscrupulous lenders who promise the world to the vulnerable seniors often resorting to falsehoods. While it is true that home owners get to protect the home while earning a steady income by obtaining a reverse mortgage, the owner also remains responsible for paying insurance premiums and maintenance of the home along with being responsible for paying property taxes too. Failing to do so might prompt the lender to take suitable actions causing the home to be foreclosed.

Sure, the money is paid to the home owner who applies for the loan. However, there may be joint or multiple owners of a single home making it imperative to list all of them in the concerned documents. This will help the loan to pass on to the other members of the family in the event of death or hospitalization of the primary borrower.

Checklist Pertaining To Reverse Mortgage Loan In Pasadena and San Bernardino CA

A senior person living alone or with the spouse in a sprawling home can be a source of concern. The hardship is sure to increase when the couple has to live on a limited income. There are many things that have to be put off indefinitely in order to make the ends meet. Reverse mortgages for seniors in Pasadena and San Bernardino CA can come in handy at times like this. The prospects begin to look bright with the advantages sounding too good to be true.

Sure, applying and obtaining a reverse mortgage loan in Pasadena and San Bernardino CA can prove to be highly effective and a solution for many of the financial problems at keep cropping up periodically. The very idea of earning a monthly income or obtaining a lump sum by simply freeing up the equity on the home looks to be a benefit that is hard to waive off. However, it would be wise to take the advice of professionals before leaping at this enormous opportunity. It can actually prove to be a boon but again, it might get one into a mess of unprecedented level.

It might sound unlike a loan in the real sense of the term but at the end of the day it still remains a loan, albeit of a different nature. It requires a lot of consideration and discussions with the family members, legal and financial professionals as well as a reputed reverse mortgage advisor before taking the final call.

Things to consider before taking a reverse mortgage loan

• Fees– The commercials may paint a rosy picture but life is seldom perfect. It is important to consider all the extra payments that one would have to make before getting to use the money available from the reverse mortgage. There is an appraisal fee coupled with a good amount required as the origination fee. Together the amount is truly substantial. Again, the home owner would have to buy mortgage insurance as well as pay the required taxes and the insurance premiums. It would make sense to calculate the amount roughly and go ahead with the mortgage only when one is comfortable with meeting the expenses.
  
• Ownership– Being joint owners of a home is in the best interest of a senior couple when they are eager to opt for reverse mortgage. Having the home in the name of a single individual may complicate matters when the owner dies suddenly with the spouse still remaining alive. This means that the living person will have to pay off the loan, failing which the home would be lost to the survivor.

The qualifying age of applying for a reverse mortgage happens to be 62. An individual is likely to benefit the most by opting for the said role before the age of 65. Delaying will only complicate matters pertaining to the sale of the home. The person can sell it anyway and move in with relatives or children willing to take the individual in. Unfortunately, the property would have to be sold without any equity and that equals no profit.

Popularity of a Reverse Mortgage Loan In San Bernardino And Ontario CA

Trying to live within one’s means is definitely tough. However, the problems begin to pile up as one grows older with many having to declare bankruptcy. Trying to continue with the same lifestyle as before is not always possible either. However, the future is not altogether bleak and there is a silver lining evident always.

Owing a home works to one’s advantage when the going gets tough post retirement. In fact the ‘Federal Housing Administration’ offers a reverse mortgage program specifically aimed at the seniors. The ‘Home Equity Conversion Mortgage’ or HECM allows the elderly to make use of the equity on their homes and solve at least some of their financial problems. This is actually a loan of sorts but here the lender pays the borrower a good amount to tide over the difficulties.

Not every senior citizen is eligible for HECM and HECM loan in San Bernardino though. There are a few conditions to be met too. To apply for HECM one has to:-

• Be at least 62 years of age
• Be the owner of the home
• Should be living in the said home at the time of seeking HECM
• Should have a good equity on the home
• Should not be in debt or have a poor credit score
• Be willing to take part in a counseling session with a reputed and FHA approved advisor

Sure, the HECM is highly popular on account of the advantages that the loan brings to the table. However, it is the only reverse mortgage that enjoys a federal insurance. The home equity is not the only form of reverse mortgage available today though. In fact, many seniors opt for the following types of reverse mortgage loan in San Bernardino and Ontario CA that help them to live life according to their own terms.

Other Types Of Reverse Mortgage

• Single Purpose– This mortgage can be obtained from a local as well as a State agency. Some non-profit agencies are also qualified to offer reverse mortgages to the elderly people residing in the area. The initial and upfront expenses are not too high either. However, the borrower needs to state the purpose for the mortgage and will not be allowed the money for anything else.
• Proprietary – This is only available to individuals who have a highly valued home and has already paid off the primary mortgage on it thus owing nothing. The mortgage needs to be obtained via private lenders who are willing to give a large amount of cash as advance.

Getting rid the conventional mortgage loan is definitely desirable and many senior citizens are able to do it courtesy the reverse mortgage option. Residing and owning one’s home while having surplus cash to take care of additional needs can keep a retired person secure and happy. That is a benefit that few are willing to give up.

How Reverse Mortgage Lenders In San Bernardino and Ontario CA Help The Elderly Population

People tend to enjoy living life in style while the going is good and the income is steady. However, the scenario changes more often than not after an individual retires. True, most people have a nest egg to fall back on but that may not always be enough to continue with the same lifestyle as before. Homeowners can definitely take heart from the fact that building a good equity on their home might help them in their twilight years.

It definitely helps to consult the prime reverse mortgage lenders in San Bernardino and Ontario CA once a retiree who is also a home owner faces considerable problem with finances. The term may sound a trifle confusing at first as it includes the word ‘mortgage’ that is actually a loan. Strangely the person opting for a reverse mortgage can actually be paid a tidy sum in lieu of this mortgage. Sure, there are quite a few pitfalls associated with it but an able financial team can help its clients by providing timely guidance.

The question of how does a reverse mortgage work in Ontario and San Bernardino CA can be best explained by the lenders themselves. However, it might also help the senior citizen to appraise the facts for themselves and learn both the pros as well as the cons about the system in order to avoid unpleasant surprises.

Highlights of Reverse Mortgages

Payouts – One’s home equity can be utilized effectively for receiving payments from the lenders. The option of payout differs from plan to plan however. While one can hope to get a monthly payment during one’s lifetime as long as the owner resides in the home, the second option is to receive the money for a specific period determined by the homeowner. A ‘line of credit’ is also possible providing the home owner with a flexible means of taking any amount of money up to a certain limit.

Home Equity – The amount obtainable via a reverse mortgage is not equal to the total equity though. In fact, the FHA has the mortgage amount calculated on basis of the age of individual asking for the mortgage along with present interest rate and the total valuation of the home. The borrower also has to pay extra for the insurance, service fees as well as the charges payable to the lender that often happens to be a third party.

Listing – While listing only the name of the present owner who happens to be an elderly person may prove to be beneficial at the onset, the heirs are bound to face problems when the present owner dies or has to be shifted to a facility following an illness. The spouse and children may have to face foreclosure simply because their names were not enlisted as co-owners while applying for the reverse mortgage.

Sure, the home owners enjoy a good amount of protection by asking for reverse mortgage but there is a chance of losing one’s home when the borrower is not capable of paying for utilities or insurance.

Truth About Reverse Mortgages For Seniors In San Bernardino And Fontana CA

Having a bit of extra cash in hand is always useful. Sadly, senior citizens often have to live within their means which gets severely limited with age. However, most individuals are proud owners of their own homes with a sizable equity. Well, this is indeed good news for it makes them eligible for obtaining reverse mortgage that enables them to lead a good life without constraints.

There are many people as well as institutions that do not think twice about duping the elderly on some pretext or the other. True, the industry has learnt to face the facts and now advise the seniors to check the criteria pertaining to reverse mortgage loan in Pasadena and San Bernardino CA carefully before applying for it. The counselor is sure to explain both the risks as well as the advantages in detail thereby cautioning the seniors to protect themselves.

How is the loan disbursed?

Reverse mortgages for seniors in San Bernardino and Fontana CA is believed to be a fitting solution to many of life’s problems especially when one is no longer fit to earn a living. While the common understanding of most people happens to be paying off their loans, the reverse loans are all about the borrower receiving money against their home.

The amount can thus be obtained as a:-

• Lump sum amount
• Regular monthly income for the entire period until the borrower lives at home
• Multiple advance payments constituting a line of credit
• Combining two or more of the above mentioned forms

Eligibility

A person who has attained the age of 62 or is older can hope to get a reverse mortgage loan from various lenders. There is a catch here though. The concerned individual needs to have enough equity to be eligible for the loan. So, how much is enough? There is apparently no hard and fast amount mentioned in dollars though but 20% or less equity will certainly not cut ice here.

The best way to make sure about obtaining the necessary loan is to pay off the existing mortgage on the home or only leave a very small portion unpaid. The greatest advantage of the loan is that it does not get to affect the credit score at all. A history of bad credit is not likely to stand in the way of obtaining the loan either.

How can the money be utilized?

While different folks use it differently, the commonest reason to take a reverse mortgage is to:-

• Pay off the remaining mortgage and own the home completely without any limitations
• Arrange to have the home repaired or renovated
• Take a vacation
• Enhance the quality of life

Loan Value

The total amount that one can borrow as a reverse mortgage is varied substantially. It depends on the equity after the existing mortgages are paid off totally as well as the age of the senior citizen. It is possible to get an inkling of the amount by using a calculator that may be found online.

There is no dearth of lenders or brokers offering the loan to seniors though. However, it might be a good idea to go through the current list of approved ‘HUD lenders’ or the list published by ‘The National Reserve Mortgage Lenders Association.’

How Seniors Benefit From a HECM Loan In Covina And Fontana CA

Owning a home is a desire that is close to the heart. This is true of numerous individuals who find it convenient to invest in a property even when their income is not too high. The best option for dealing with the enormous expense is to opt for mortgaging the house though and simply hope that the owner will not become a defaulter eventually.

However, many seniors find it convenient to opt for a reverse mortgage in addition to the first mortgage. The constant struggle of trying to procure the interest becomes a thing of past for many individuals who can safely cease to pay both the principle and the interest amount for the time being. Sure, it appears to be too good to be true with the concerned person being able to get a good amount of tax free money and keep deferring the mortgage payments. This is certainly no charity on part of the government though. It can best be described as a financial tool that helps seniors to lead a comfortable life in spite of having a limited income.

Well, there is sure to be some disadvantages associated with it too. It would definitely help to get in touch with the top reverse mortgage lenders in Fontana and San Bernardino CA and ask for their counsel. The right lender will be sure to discuss both the pros as well the cons with the prospective borrower.

Salient Points of Reverse Mortgage

• Tax Free – Now, this is definitely a reason to be overjoyed. The government does not deduct any part of it and the entire amount is paid to the recipient. It can be taken either at one go or as a sort of ‘fixed income.’ There is absolutely no need to make adjustments as the entire sum is provided as a loan by the FHA.
• No Restrictions – There is no terms and conditions to be met once the individual receives the amount. The money can be utilized as the individual deems fit without any restrictions whatsoever. Many seniors choose to augment their lifestyle or take that long put off vacation with the money received from reverse mortgage. It is indeed a means of enjoying life to the fullest.
• Federal Protection – The HECM loan in Covina and Fontana CA enjoys total protection by the Federal Government and the concerned individual does not have to worry about the lender reneging. This clause of the ‘Home Equity Conversion Mortgage’ certainly sets the anxieties to rest as there is no chance of the lender refusing to honor the deal. The elderly population is definitely relieved to know that the mortgage will be paid out in full.
• Eligibility – It is certainly difficult for a senior person of limited means to obtain a loan today. There are numerous formalities to take care of along with multiple official documents to sign and submitting various forms and income certificates. No worries! Satisfying the conditions and becoming eligible for taking a HECM loan is exceedingly easy on the contrary.

The advantages of opting for a reverse mortgage are enormous with no apparent chance of losing the home in direct contrast to a traditional mortgage.

How Seniors Benefit From a HECM Loan In Covina And Fontana CA

The Reverser Mortgages For Seniors In Ontario And Pasadena CA Offers Varied Disbursement Options

Reverse mortgage is a beneficial retirement planning tool which allows homeowners in the age group of 62+ years to transform a portion of their home equity into usable funds without the necessity to repay the loan for with the proviso that the borrower continues to meet the loan debts.

Retirees who are having financial crunch or those looking for a second source of income a reverse mortgage loan can be the best option available. As one assesses this financing option it is important to consider the following advantages before finding out whether or not a reverse mortgage loan will meet the precise financial objectives and requirements:

• HECM in Fontana and Ontario CA loan allows the debtor to convert a portion of their home equity into usable funds. The Home Equity Conversion Mortgage (HECM) enables a person to withdraw some of the equity in the home.

• A common delusion of reverse mortgages is that the lender takes ownership of the home. This is not correct. The borrower continues to be the owner of the home, as long as that person complies with the terms of the loan and pays homeowner’s insurance and property taxes.

• One of the major advantages of reverse mortgages is that payments are made to the borrower as long as that person lives in the home. Unlike the traditional mortgage there are no monthly mortgage payments required. The loan is repaid when the borrower sells the home, move to a different residence, or when the last borrower departs from the home.

• Reverse mortgage is extremely flexible product that can be used in a range of ways for different types of debtors. Households who have a monetary requirement can customize the product to get rid of finance related issues. Households with ample funds may consider this as a financial planning tool.

• As reverse mortgage is basically a loan, the money from it is usually tax-free, whether one receives it in a lump sum or as a fixed income.

• Unlike a home equity loan, with a reverse mortgage the home cannot be taken from the borrower because of non-payment as there are no payments on the loan till one leaves the home permanently. However, the borrower shall not default from paying for maintenances, insurance and taxes.

• The reverser mortgages for seniors in Ontario and Pasadena CA understands that each individual senior has varied requirements. Thus, there are varied disbursement options to cover various requirements. This includes the choice to get funds in a full or partial amount, monthly payments, a line of credit, or a combination of some of these.

These are some of the advantages that reverse mortgage offers to the borrowers.

Reasons To Contact Reverse Mortgage Lenders In Ontario And San Bernardino CA

The mightiest nation in the world i.e. the USA is aging fast. The baby boomer generation is all but gone with the survivors having attained the age of 65 or more. Recent statistics reveal the fact that an astounding number of over 70% of Americans are going to be respected senior citizens before 2030. It is time to focus on the financial condition of the elderly residents therefore.

Unfortunately, the social security payments at this time are not quite enough to meet the needs. The seniors who enjoy living in their homes that are valued at a high price may enjoy a respite from financial hardships by opting for a HECM loan in Fontana and Pomona CA. Putting the property to use is definitely a great way of being able to continue with the present lifestyle for years altogether.

However, it may be advantageous to discuss the pros and cons with experienced and reputed reverse mortgage lenders in Ontario and San Bernardino CA though. Obtaining the amount that happens to be just right for paying off previous debts and redecorating the house is easy especially when the borrower is a senior citizen well above 62 years of age.

Home Equity Conversion Mortgage: Facts

The HECM loan happens to be a special kind of loan meant exclusively for elderly persons. There is a mortgage lien on the property of the borrower but no stipulation for repayment as long as the said person resides within the home that has been mortgaged via HECM. The amount is paid to the borrower over a period of time instead of a lump sum based on the requirement.

This loan has proved to be particularly beneficial for the aged citizens of the nation. It is one of the most effective and versatile tools for the elderly who can satisfy their requirements by opting for this form of reverse mortgage scheme. The flexibility of HECM is unparalleled as well. The aged population can receive the amount in accordance with their needs and at a frequency that can be changed to suit their changing requirements over the years.

Requirements

• The borrower must be 62 years of age or older

• Should possess a substantial equity on a home either a self owned one or a family home.

• It can be a single family home or a 2 to 4 unit family house where one of the units must be occupied by the borrower. The house can also be condo that has been approved by the FHA or an approved manufactured home.

• There must be no pending mortgage on the home at the time of applying for HECM

The HECM loan varies significantly from the other form of standard loans provided by banks and other financial institutions though. This reverse mortgage helps an elderly person to live life comfortably without having to worry about the finances. The eligibility criteria along with the credit restrictions are not too off-putting when compared to the standard loans available at present.

Advantages Of Seeking Reverse Mortgages For Seniors In Ontario CA

Reverse mortgage is a term that one comes across many times. However, the details often leave an individual confused and undecided. Can it help them to carry on leading life on their own terms is a question that plague the elderly constantly? However, it is not too difficult to find out the particulars either. Every financial institution along with private lenders can apprise their clients of the features and highlight the pros along with the cons of opting for reverse mortgages in San Bernardino CA.

Sure, this is a chance of a lifetime for the elderly but contrary to the expectations, it does not help them to evade their property taxes or home insurance premiums either. In other words, it is simply a provision offered by the, ‘Federal Housing Administration (FHA)’ that allows an aged citizen to live comfortable within his own home as long as he/ she is able to clear off the due obligations.

Unfortunately, like all good things, the prospect of choosing to take reverse mortgages for seniors in Ontario CA is fraught with hazards. Financial professionals advice counseling for seniors who live on their own without access to their family members so that they can remain aware of the dangers and avoid being duped by unscrupulous lenders.

Eligibility

• The individual applying for a reverse mortgage needs to have completed at least 62 years of age and be the owner of the property title

• Almost all single family homes along with 2-4 owner units and townhomes are eligible for reverse mortgage loans. It needs to conform to the property standards set by the FHA, however.

Who should be approached for a reverse mortgage?

There are numerous money lenders, brokers as well as institutions who offer a variety of products related to reverse mortgage.

• It might help to check the list published by, ‘The National Reserve Mortgage Lenders Association’ that includes every single lender who has been approved to initiate this form of mortgage.

• A similar list is also brought out by the, ‘Department of Housing and Urban Development.’ It is also possible to limit the search to lenders who have closed HECM loans in the past year.

Availability of the loan

A reverse mortgage can be obtained as a loan in the form of:-

• Lump Sum – It is possible to take the entire loan at one go when it happens to be a fixed rate loan

• Term – The amount is paid in monthly installments that continue for a specified number of years.

• Tenure – The loan amount is provided for the entire loan term

• Line of credit – It is possible to borrow specific amounts as per the requirement

However, it is necessary to take 60% of the amount made available or fulfill all the obligations made mandatory in accordance with the HECM rules. Another 10% needs to be obtained within a year of closing of the loan. The total amount cannot exceed the loan limit in any circumstances, however.

The senior person who receives the loan will also have to make provisions for paying the property taxes plus maintain adequate insurance coverage on the concerned property.