Reverse Mortgages

We qualified for the lowest rate. Thank you from our whole family!

La Jolla, CA

A reverse mortgage functions like a regular mortgage but in reverse. The lender provides the homeowner with the loan proceeds as a monthly stipend; the loan does not have to be repaid until six months after the homeowner passes away or permanently moves out of the home.

Many seniors are finding that despite careful planning for their retirement, they are unable to survive on their retirement income. One solution is a reverse mortgage, which can help seniors to subsidize their monthly income without incurring additional debt. An application for a reverse mortgage can be found on the right side of this page and completing it can help seniors get started on the path to a more comfortable lifestyle.

Reverse mortgages do not require credit approval nor do they affect FICO scores. Equity in the home is the collateral so there is no qualification criterion as long as the homeowner uses the home as his or her principal residence. Additionally, one of the homeowners must be at least 62 years old and the home must be paid for. If there is a balance owing on the loan, it can be paid off with proceeds from the reverse mortgage.

Almost all types of homes are eligible for reverse mortgages including mobile homes that are less than 30 years old and on a parcel of land, and some condominiums. The homeowner retains title to the home when he or she takes out a reverse mortgage and the proceeds from reverse mortgages do not affect Social Security benefits. In addition, the proceeds are not taxable and therefore will not increase the recipient’s taxable income.

For seniors who are living frugally on their current income, a reverse mortgage can allow some luxuries they wouldn’t otherwise have and make their lives more comfortable. The application on the right side of this page can help seniors get started on the road to greater freedom and independence as well as comfort.