You may need to consider getting a reverse mortgage if you're age 62 or older – and want to get rid of outstanding debt, pay healthcare bills, or supplement your income. A reverse mortgage enables you to turn part of your home equity into funds without having to pay monthly bills.
However, a reverse mortgage can be complicated, but our counselor can give you all the information you need. At Revers Loan Solutions, we are reverse Mortgage Company in San Jose, offering information to better educate you about a reverse mortgage.
In this short guide, you'll learn about reverse mortgages and how they work. We'll also a brief look at the different types of reverse mortgage, so you can decide which type may be a good fit for you.
Who Is Eligible For A Reverse Mortgage?
The homeowner looking to get a reverse mortgage must be at least 62 or older to be eligible. The homeowner must meet e criteria like:
- Own your home outright
- The home must be your primary residence
- Remain current on property taxes
- Keep your property in good condition
- Your home must be a single-family
How Does Reverse Mortgages Work?
A reverse mortgage works like a standard mortgage. The lender will use many details about you and your home, such as your age and property's value, to determine how much you can lend. You don't make monthly payments on your home's principal with a reverse mortgage until you sell the house, pass away, or no longer live there; your repayments are taken from the equity you've built.
If you don't pay up the mortgage or sell your home before you die, those you leave behind have two options. They can either leave your house to the lender/bank or pay off the full reverse mortgage, including piled up interest.
Different Types of Reverse Mortgages
There are three different types. The type of loan you choose will depend on your eligibility and the reasons for borrowing.
- Single-Purpose Reverse Mortgage is a loan made for a specific purpose, such as a home improvement loan or paying off debt. Most homeowners with a low income can be eligible for these loans.
- Proprietary Reverse Mortgage is loan made through private lenders. They are often made available to homeowners who have a higher appraised value and a small mortgage.
- Home Equity Conversion Mortgage is a federally-insured home loan backed by the U.S. Department of Housing and Urban Development. Using this loan, a borrower will have access to many different types of payment options through the HECM program.
Shopping For A Reverse Mortgage San Jose? Revers Loan Solutions Can Help
Reverse mortgages are the ideal solution for some people, but not all. If you're considering a reverse mortgage in California, contact Revers Loan Solutions at 800-791-5626 to schedule a counseling session to find out more. Feel free to ask questions during your counseling session with us until you completely understand everything you need to know about a reverse mortgage.