Reverse Mortgage Loan Santa Clara

What is a reverse mortgage?

The most popular kind of reverse mortgage, the House Equity Conversion Mortgage (HECM), is a unique home loan available only to homeowners aged 62 and above.

Like a conventional mortgage, a reverse mortgage loan enables homeowners to borrow money while using their house as security for the loan. Like a traditional mortgage, the title to your property is kept in your name when you take out a reverse mortgage loan. With a reverse mortgage loan, borrowers do not make monthly mortgage payments, unlike a conventional mortgage. When the borrower vacates the property, the loan is paid back. Each month, fees and interest are added to the loan sum, which causes it to increase. To qualify for a reverse mortgage loan, a homeowner must maintain good credit, pay property taxes and homeowners insurance, and utilize the home as their primary residence.

With a reverse mortgage loan, the homeowner’s debt to the lender increases over time rather than decreases. This is due to the monthly addition of fees and interest to the loan total—your home equity declines as your loan balance rise.

Not free money, a reverse mortgage loan. It is a loan where the monthly loan balance rises due to monthly borrowing plus interest and fees. The debt will eventually need to be repaid by the homeowners or their heirs, typically by selling the house.

Do reverse mortgages come in a variety of forms?

Reverse mortgage loans come in various forms, including those guaranteed by the Federal Housing Administration (FHA), proprietary loans not covered by the FHA, and single-purpose loans provided by state and local governments.

Home Equity Conversion Mortgages (HECMs), insured by the Federal Housing Administration (FHA), make up most of the reverse mortgage loans. Some lenders may also provide proprietary reverse mortgage loans in addition to HECM loans; these loans are not federally guaranteed and are often intended for borrowers with more expensive homes.

Some local, state and non-profit governments provide reverse mortgage loans with a specific purpose. Only the purposes stated by the lender may be used for these reverse mortgage loans (for example, home repairs or property taxes). They might only be accessible to homeowners with low to moderate incomes in certain areas. These non-HECM reverse mortgage loans are not federally insured.

Mortgage for Home Equity Conversion (HECM)

the most typical kind of reverse mortgage currently. HECMs are federally guaranteed by the Federal Housing Administration, setting them apart from private reverse mortgages (sometimes known as “proprietary” reverse mortgages) (FHA).

Homeowners Insurance

Covers losses and property damage in an emergency, like a fire or burglary. It may be possible to add this coverage since earthquake and flood damage is not typically covered by standard homeowners insurance. Borrowers with a HECM loan must maintain homeowners insurance in addition to the mortgage insurance required with a reverse mortgage loan. Homeowners insurance is also commonly referred to as “hazard insurance.”


Take the first step

towards the retirement you want

Find out how much you can receive with a reverse mortgage by completing the form below.

  • By submitting this request for information, I hereby provide my signature, expressly consenting to receive information by email or phone, via automated dialling systems, texting, and/or prerecorded messages, from or on behalf of Giraffe and Its fulfillment partners and may agree to receive other offers on the telephone number I provided above, including my wireless number, even if I am on a State or Federal Do-Not-Call list. I understand consent Is not a condition of purchase and that I may revoke my consent at any time. I can revoke consent by calling Giraffe customer service at 1-866-723-6466 or contacting my loan officer.