An unprecedented number of Southern California residents are reaching retirement age at the present time, and Social Security payouts are modest. A reverse mortgage loan can provide the ideal income supplement. Property values in this area are typically high, so you may be able to draw from the value of your home as you still maintain a significant legacy to pass along to the people that you love.
The term “reverse mortgage loan” is an easier way of referring to a Home Equity Conversion Mortgage or HECM. There are a lot of myths and misconceptions that circulate about reverse mortgage loans, and one of them is the notion that they are not safe. In fact, the Home Equity Conversion Mortgage program is governed by the Federal Housing Administration of the United States of America. When you obtain a reverse mortgage through Futura Financial, you can go forward with peace of mind, because you will be working with an FHA-approved lender.
If you would like to qualify for a reverse mortgage loan, certain federally mandated eligibility requirements must be met. Since FHA HECM loans are intended for senior citizens, you must be at least 62 years of age. Plus, you have to own your home outright or have significant equity in it. The property that is going to be mortgaged must be your primary place of residence, and it must meet FHA property standards and flood requirements. In addition to single-family homes, FHA HECM loans could be issued to people who own manufactured homes, approved condominiums, and two to four unit properties (as long as the applicant lives in one of the units).
If you take out a reverse mortgage, you have flexibility with regard to the way that you are paid. You can accept fixed monthly payments, or you can arrange for an open line of credit that you can tap into at your convenience. It is also possible to merge the two and have a line of credit open to you as you also receive fixed payments every month.
You never have to move from your home, and there are no payments to make. It may sound too good to be true, but the reverse mortgage lender pays you, plain and simple. That's the bottom line.
Senior residents of Covina, Fontana, Ontario, Pasadena, Pomona, and San Bernadino, CA have a lot of opportunities at their fingertips if the financial flexibility is there. Our reverse mortgage brokers are here to help if you would like to learn more about FHA Home Equity Conversion Mortgages. Give us a call right now at 888-225-7826 to set the wheels in motion.