Reverse Mortgage

Reverse Mortgage Loans

Six frequently asked questions about Reverse Mortgage Loans:

1) What is a Reverse Mortgage?
A Reverse Mortgage is a government regulated financial instrument that allows seniors to
access the equity in a home without income or credit qualifications. Seniors must be 62,
live in the home, and have enough equity in it to provide a down payment if they secure the
FHA Reverse Mortgage to purchase a new home.

2) Why would I want a Reverse Mortgage?
These are some of the most common reasons:
• Cover health care expenses, disability and day to day expenses
• Improve quality of life
• Pay off debt
• Repair the home, ie: add handicapped walkways, stair lifts, and other improvements
• Help a grandchild with college expenses

3) Can I use a Reverse Mortgage to purchase a new home?
Yes! In fact, as baby boomers age, there will be a dramatic increase in the use of FHA
reverse purchases as empty nesters sell the large family home and buy down to a smaller
home, with payments coming INTO the family until the last resident passes instead of going
out.

4) What can seniors use the money for?
The borrower can use the money for anything. There are no restrictions of any kind.

5) At what point does the bank TAKE my home?
As long as the property taxes and insurance are paid and the home is properly maintained, the
bank will NEVER TAKE AWAY the property. When the borrower moves out, sells the
property, or refinances the home, ALL the proceeds are theirs, or belong to their estate.

6) How much money can I borrow?
There is a formula used that is based upon the property value or sales price, and the age of the
borrowers/occupants. CALL (714) 349-7733 if you would like to get help calculating the
math.