Palm Desert Reverse Mortgages
If you are 62 years or older and have at minimum 50% equity in your home, you may qualify for a Reverse Mortgage. Reverse mortgages help give freedom to people who are on a limited income or just need an extra cash income.
What is a Reverse Mortgage?
A reverse mortgage is a loan against the equity of a home that provides cash advances to a borrower requiring no repayment until a future time. The most commonly used and well known reverse mortgage product is known as a Home Equity Conversion Mortgage (HECM.) It allows a borrower to convert their home equity into cash without having to sell their property or make a monthly loan repayment back to the bank.
- All owners must be at least 62 years of age.
- The borrower must live in the home as a principal residence and have been on title for a minimum of 1 year.
- Minimum required equity of the home varies depending on age but assume at least 50% equity.
- Existing debt on home will need to be paid-off.
How is a Reverse Mortgage Different than Traditional Mortgages?
- There is no income requirement to qualify.
- There is no credit score requirement to meet.
- There are no out of pocket monthly payments to be made.
- There is no housing or debt ratio’s to qualify for.
Why Reverse Mortgage?
- A Reverse Mortgage helps to create an alternative source of income for a borrower.
- It eliminates any out of pocket monthly mortgage payments.
- It allows the senior to remain in their home as long as they wish to.
- With a reverse mortgage, the borrower will never owe more than the value of their home – it is a no recourse loan therefore if the value goes down, it is sold similar to a short sale.
- The borrower’s estate and heirs are protected against deficiency judgments.
Contact me today to see if a Reverse Mortgages is right for you.