Reverse Mortgage Eligibility

  • All reverse mortgage borrowers must be 62 and older
  • Must own property and occupy as primary residence
  • Participate in an information counseling session
  • Must have sufficient equity in the property
  • Property must meet FHA property standards
  • Must maintain home with needed repairs, property taxes and insurance

Loan Amount Based On

  • Age of youngest borrower
  • Current interest rate
  • Lesser of appraised value or the FHA insurance limit
  • An Image Slideshow - Reverse Mortgage Educator
  • An Image Slideshow - Reverse Mortgage Educator
  • An Image Slideshow - Reverse Mortgage Educator

Contrasting Reverse Mortgages

From Traditional (Forward) Mortgages

Item Reverse Mortgage Traditional Mortgage
Purpose of loan To release the equity in the home and use the proceeds to live a more comfortable, stress-free, retirement To purchase or refinance a home

Before loan closing, you have

Substantial equity in the home

No or little equity in the home

At loan closing, you

Owe very little and have substantial equity

Owe a lot, and have little equity

While the loan is outstanding,

You receive payments from the lender - Loan balance rises - Equity declines

You make payments to the lender - Loan balance goes down - Equity grows

At the end, you

Owe whatever amount was borrowed, plus accrued interest

Have much less, little, or no equity

Owe nothing

Have Substantial Equity

Final analysis

Rising Debt-Falling Equity Loan Program

Falling Debt-Rising Equity Loan Product

Quick quote for reverse mortgages in California
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California reverse mortgage scenario examples