California Reverse Mortgage Programs
Frequently Asked Questions | The Reverse Mortgage Process
How a Reverse Mortgage Works
A reverse mortgage allows older homeowners to tap into their equity without the requirement of monthly payments.
The amount available is based on age, the value of the home or maximum claim amount and current interest rate. A sum of money is provided in cash, a line of credit to draw from or a monthly income. The loan is due when the last surviving borrower moves, sells the home or passes away. Then the entire loan balance is due. The loan balance includes the amounts advanced, fees and interest charges that have accrued over the life of the loan. Since the home remains in the homeowner's name they or their estate benefits from the appreciation.
Let Your Home Work For You!
We Have a Wide Variety of Reverse Mortgage Programs Available.
*Check out the newest programs for homeowners aged 60 and older - Simple60 and Gold Reverse Fixed! *
Since each borrower is unique, we will help explain the programs available, advise the borrower of the best option to fit their needs and then direct them to an independent counselor.Counseling is required for all reverse mortgage loans and a counseling certificate of completion must be submitted prior to signing the final loan application.
This is a protection to the borrowers, ensuring they are fully informed and making the right decision based on their personal circumstances.View our list of reverse mortgage counselors for contact information.
Discover the peace of mind that comes from financial independence. We are available to answer all of your questions and provide detailed facts and figures for your review and consideration.
Give us a call 1 (800) 489-0986, request reverse mortgage program information , or click the links below for information on available programs.
Home Equity Conversion Mortgage (HECM)
The Home Equity Conversion Mortgage (HECM) is the oldest and most popular reverse mortgage program, accounting for over 90 percent of the total market. Available since 1989 to homeowners 62 or older, HECMs are insured by the federal government through the Federal Housing Administration (FHA), a part of the U.S. Department of Housing and Urban Development.
There are two HECM programs available - the HECM 1.75 and the HECM Fixed
This program has been temporarily discontinued - please call us on
1-800-489-0986 for more details.
The Reverse Select jumbo program is a fixed rate jumbo reverse mortgage. Options include equity preservation, home purchase and second home financing.
The HECM Fixed Rate reverse mortgage is suprisingly low, call for the current rate. The HECM is not a Jumbo plan and the home value is limited to the HUD maximum claim amount. Fixed rate programs require cash draws at closing with no line of credit or monthly income option..
View current rate
This variable rate reverse mortgage is tied to the 1 month LIBOR index with two margin options, 3.5% and 3.25%. As with all Jumbo reverse mortgages there is no maximum lending limit. Origination fee is 2% of the principal limit and outside closing costs are charged and may be added to the loan balance.
This program has been temporarily discontinued - please call us on
1-800-489-0986 for more details.
With this proprietary "Jumbo" reverse mortgage clients can make the most of their higher-valued homes. This program features a low adjustable rate and the index used is the 1 month Libor with a margin of 3.5. The available line of credit has a growth rate of 5% annually.
View current rate
The Simple60 is geared to consumers who want to pull out $50,000-$75,000, typically for a specific purpose and a shorter period of time. While loan amounts vary depending on age and home value, a 60-year-old borrower with a home valued at $250,000 owned free and clear could qualify for $62,500 under the Simple60 program. Closing costs would be approximately $4,513, about one-third of the HECM closing costs. The interest rate on the Simple60 program is the 30-day LIBOR rate, plus 4 percentage points. Earlier this week that combined rate was 8.7 percent, similar to some home equity loans.
Gold Reverse is a fixed rate reverse mortgage for ages 60 and older. The full value of the home is used to calculate proceeds, with a maximum loan amount of $2,000,000 and minimum loan amount of $150,000.
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Fannie Mae is the nation's largest investor of home mortgages and a major investor of reverse mortgages.
A consumer may choose to receive the funds from a Home Keeper as: (1) fixed monthly payments for life (i.e., for as long as the borrower occupies the home as his/her principal residence; (2) a line of credit; or (3) a combination of monthly payments and line of credit.
Home Keeper borrowers are charged an origination fee that may not exceed 2 percent of the adjusted value of the home, whichever is greater, a monthly servicing fee (and other closing costs. All of these can be financed and included in the mortgage.
The interest rate charged on a Home Keeper mortgage adjusts monthly and is equal to a fixed spread above an index rate – the current weekly average of the one-month secondary market CD rate, which is published by the Federal Reserve. The rate may never rise by more than 12 percentage points above the initial rate; there is no cap on a monthly adjustment other than the lifetime cap.
The Home Keeper for Home Purchase program enables seniors to obtain a Home Keeper mortgage in connection with the purchase of a new home – in a single transaction. The transaction reduces the out-of-pocket cash needed by the consumer to buy a new home, eliminates any new monthly mortgage payment, and helps the consumer keep more of the sales proceeds from their old house – or a larger amount of savings – to use for other purposes. The maximum claim amount for this product is $417,000.
Differences between FHA HECM and Fannie Mae Homekeeper:
•Fannie Mae's benefits are reduced for couples
•Interest rate is higher than FHA HECM
•FHA's line of credit grows while Fannie Mae's line of credit does not
•No term payment with Fannie Mae
•Fannie Mae has higher lending limit
•Fannie Mae can have higher monthly payments for a single homeowner
Reverse Mortgage Information in Spanish
Diez datos para saber si está interesado en una hipoteca revertida
The Federal National Mortgage Association (FannieMae) publishes a book titled:
Money From Home - A Guide to Understanding Reverse Mortgages
