Palm Desert Reverse Mortgages

By
Real Estate Agent with Todays Realty & Loan Solutions - One Stop and You Are Home

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. Palm Desert Reverse Mortgage

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.

Who Qualifies?

  • 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.

 

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Comments (1)

Lori Gardiner
RE/MAX River's Edge - Bristol, RI
GRI, SRS, ABR, e-PRO

Great info. Thanks for sharing. Have a great night.

Oct 18, 2011 09:27 AM