I do love my job! I have been brainstorming with this one couple in Yucaipa for over 2 years. They knew a reverse mortgage would be a part of their retirement strategy, just not sure when or how. They looked into two options.
Refinancing their current home with a reverse mortgage to payoff the existing loan and staying.
Selling the existing home and buying a smaller more suitable home with a Reverse For Purchase.
As time progressed it became clear that downsizing and buying with a reverse mortgage was the better strategy for them. Taking care of their big home on a large parcel would have become a burden both physically and financially. They realized that having a smaller home in a gated community would be a safer, easier and better choice as they age. With home values in Southern California on the rise, they figured it was a great time to make the jump. So, they listed their home with a great local Realtor and it sold quickly. After accepting their buyers offer, they began looking at homes and finally found the perfect place. Single story, smaller, but not too small, in the gated Active Adult Community of Solera in Beaumont, CA.
By using the reverse to help them pay for their new home they did not have to use all of their sale proceeds, and had a nice chunk left over to beef up their Retirement Accounts. The reverse mortgage loaned approximately 60% of the homes appraised value and they put in the rest plus closing costs.
SWEET! What do you think?
Note: A HUD insured Reverse Mortgage requires no monthly mortgage payments. The homeowners are responsible for maintainging the home, paying property taxes, homeowners insurance and HOA Dues (if any). Pretty much like any homeowner does, with or without a mortgage.
By Deborah Nance
Your Local Southern California Reverse Mortgage Professional
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iReverse Home Loans, LLC, NMLS#810502 originates reverse mortgages in Alabama, Alaska, Arizona (MB-0919584), California, Colorado, Connecticut, Florida, Illinois, Indiana, Iowa, Kansas, Louisiana, Maryland, Massachusetts, Minnesota, Mississippi, Missouri, Nevada, New Jersey, New Mexico, Ohio, Oregon (ML-5378), Pennsylvania, South Dakota, Tennessee, Texas, Utah, Vermont (1164-MB), Virginia, Washington and Wisconsin.
Important Information: Reverse Mortgages are neither "endorsed" nor "approved" by the Federal Government. The FHA (Federal Housing Administration) provides certain insurance benefits for lenders and borrowers in connection with the lender’s HECM loans; the FHA does not make or originate loans. The owner(s) retain title to the property that is the subject of the reverse mortgage until the person sells or transfers the property and is therefore responsible for paying property taxes, insurance, maintenance and related taxes. Failing to pay these amounts or failure to maintain the condition of your property may cause the reverse mortgage loan to become due immediately. A reverse mortgage is a complex loan secured by your home. Whether such mortgage makes sense for you depends on your financial situation and needs. For these reasons, we strongly recommend that you consult with a qualified independent housing counselor, family members and other trusted advisers before making this decision. This website is not from HUD or FHA and was not approved by HUD or any government agency.