Reverse Mortgage Professionals

Reverse Mortgage Los Angeles

888-866-8152
  • About Us
  • Information
  • Calculator
  • Resources
  • Blog
  • Contact

What is a Reverse Mortgage?

March 6, 2014 by Chris

reverse mortgage lender

If you are a homeowner age 62 or older and have paid off your mortgage or paid down a considerable amount, and are currently living in the home, you may participate in FHA’s Home Equity Conversion Mortgage (HECM) program.  The HECM is FHA’s reverse mortgage program that enables you to withdraw a portion of your home’s equity.

You can also use a HECM to purchase a primary residence if you are able to use cash on hand to pay the difference between the HECM proceeds and the sales price plus closing costs for the property you are purchasing.

How the Program Works

There are many factors to consider before deciding whether a HECM is right for you.  To aid in this process, you must meet with a HECM counselor to discuss program eligibility requirements, financial implications and alternatives to obtaining a HECM and repaying the loan. Counselors will also discuss provisions for the mortgage becoming due and payable.  Upon the completion of HECM counseling, you should be able to make an independent, informed decision of whether this product will meet your specific needs. You can search online for a HECM counselor who will help clarify our reverse mortgage information.

There are borrower and property eligibility requirements that must be met.  You can use the listing below to see if you qualify. If you meet the eligibility criteria, you can complete a reverse mortgage application by contacting a FHA-approved lender.  You can search online for a FHA-approved lender or you can ask the HECM counselor to provide you with a listing.  The lender will discuss other requirements of the HECM program, such as first year payment limitations, available payment options, the loan approval process, and repayment terms.

Borrower Requirements

You must:

  • Be 62 years of age or older
  • Own the property outright or paid-down a considerable amount
  • Occupy the property as your principal residence
  • Not be delinquent on any federal debt
  • Have financial resources to continue to make timely payment of ongoing property charges such as property taxes, insurance and Homeowner Association fees, etc.
  • Participate in a consumer information session given by a HUD- approved HECM counselor

Property Requirements

The following eligible property types must meet all FHA property standards and flood requirements:

  • Single family home or 2-4 unit home with one unit occupied by the borrower
  • HUD-approved condominium project
  • Manufactured home that meets FHA requirements

Financial Requirements

  • Income, assets, monthly living expenses, and credit history will be verified.
  • Timely payment of real estate taxes, hazard and flood insurance premiums will be verified

For adjustable interest rate mortgages, you can select one of the following payment plans:

  • Tenure – equal monthly payments as long as at least one borrower lives and continues to occupy the property as a principal residence.
  • Term – equal monthly payments for a fixed period of months selected.
  • Line of Credit – unscheduled payments or in installments, at times and in an amount of your choosing until the line of credit is exhausted.
  • Modified Tenure – combination of line of credit and scheduled monthly payments for as long as you remain in the home.
  • Modified Term – combination of line of credit plus monthly payments for a fixed period of months selected by the borrower.

For fixed interest rate mortgages, you will receive the Single Disbursement Lump Sum payment plan.

Mortgage Amount Based On

The amount you may borrower will depend on:

  • Age of the youngest borrower or eligible non-borrowing spouse
  • Current interest rate; and
  • Lesser of appraised value or the HECM FHA mortgage limit of $636,150 or the sales price

If there is more than one borrower and no eligible non-borrowing spouse, the age of the youngest borrower is used to determine the amount you can borrow.

HECM Costs

You can pay for most of the costs of a HECM by financing them and having them paid from the proceeds of the loan. Financing the costs means that you do not have to pay for them out of your pocket. On the other hand, financing the costs reduces the net loan amount available to you.  This reverse mortgage information is vital to pricing your loan.

The HECM loan includes several fees and charges, which includes: 1) mortgage insurance premiums (initial and annual) 2) third party charges 3) origination fee 4) interest and 5) servicing fees. The lender will discuss which fees and charges are mandatory.

You will be charged an initial mortgage insurance premium (MIP) at closing.  The initial MIP will be .5 percent or 2.5 percent, depending on your disbursements.  Over the life of the loan, you will be charged an annual MIP that equals 1.25% of the outstanding mortgage balance.

  1. Mortgage Insurance Premium
    You will incur a cost for FHA mortgage insurance.  The mortgage insurance guarantees that you will receive expected loan advances. You can finance the mortgage insurance premium (MIP) as part of your loan.
  2. Third Party Charges
    Closing costs from third parties can include an appraisal, title search and insurance, surveys, inspections, recording fees, mortgage taxes, credit checks and other fees.
  3. Origination Fee
    You will pay an origination fee to compensate the lender for processing your HECM loan. A lender can charge the greater of $2,500 or 2% of the first $200,000 of your home’s value plus 1% of the amount over $200,000. HECM origination fees are capped at $6,000.
  4. Servicing Fee
    Lenders or their agents provide servicing throughout the life of the HECM. Servicing includes sending you account statements, disbursing loan proceeds and making certain that you keep up with loan requirements such as paying real estate taxes and hazard insurance premium. Lenders may charge a monthly servicing fee of no more than $30 if the loan has an annually adjusting interest rate or has a fixed interest rate. The lender may charge a monthly servicing fee of no more than $35 if the interest rate adjusts monthly. At loan closing, the lender sets aside the servicing fee and deducts the fee from your available funds. Each month the monthly servicing fee is added to your loan balance. Lenders may also choose to include the servicing fee in the mortgage interest rate.

Filed Under: Basics Tagged With: basics, eligibility, income

FHA Bill Changes

October 7, 2013 by Chris

A recent bill introduced to the house is aimed at eliminating the budget deficit created by reverse mortgages. According to the Federal Housing Association, there is a $5 million loss in reverse mortgages in the United States so far this year. The reserves in the FHA’s budget are depleting faster than ever leading to a possible injection of cash by the Treasury. This bill calls for a cap on the lump sums borrowers can request in-turn creating a more sound, stable model for lenders to follow. Along with lowering the amount a borrower can request in equity, lenders must conduct thorough risk-assessments of borrowers. The only way to create a financially sound program for seniors is to assess the possibility for default, which can be difficult due to the volatility of the housing market. While this bill is months away from implementation, it possesses the ability to curb the trend regarding defaults in the world of reverse mortgages and potentially change the media’s opinion on this type of loan.

Filed Under: Changes Tagged With: bill changes, fha

Reverse Mortgage Changes

August 13, 2013 by Chris

Within the past week major changes have come about the reverse mortgage industry within the United States. Legislation in congress has adjusted the “Home Equity Conversion Mortgage Program” otherwise known as the reverse mortgage. This has been in the balance for some time now as a means of changing consumer perception of the type of loan. Over the past few years the perception has been if there is a default on a reverse mortgage, the borrower will be eliminated from the home and dive deeper into financial crisis. The main goal during talks in Washington has been strengthening borrower protection.

In order to increase borrower protection from loan companies, background checks will make it much harder to qualify for reverse mortgage loans and prevent borrowers from being booted from their homes. For these changes to seamlessly occur, a strict financial assessment will take place as a means of protecting lender from defaults. This change will also set limits on on the amount borrowed and withhold capital to cover property taxes and homeowner insurance. Another major change involves surviving spouses of borrowers being protected from eviction. With these changes set to take place as early as October 1st, 2013 the public perception is bound to change the industry and create a possitive outlook for both borrowers and lenders.

Filed Under: Changes Tagged With: bill changes, fha

Reverse Mortgage Basics

March 6, 2013 by Chris

what is a reverse mortgage

Are you over 62? Have you been wishing you had a way to access your home equity?  Have you considered a reverse mortgage?  If you are happy with your current residence and not planning to move again, strongly consider reverse mortgage.  The extra cash allows you to get the most out of your retirement.

Today’s home ownership is rarely the investment that you expected it be when you first bought, but that doesn’t mean that it should only be a slow monthly drain on your income and savings.  Loan companies specializing in reverse mortgage make the process simple and straightforward, allowing you to access your equity.  The boost in cash on hand can let your retirement resemble what you had hoped it would be when you started saving. A reverse mortgage has historically been sought to pay off a current mortgage, initiate a home improvement project, or cover health care.

There are different types of reverse mortgage loans, similar to conventional mortgages, including a fixed-rate (known as the Standard Fixed Rate HECM), a lower-cost, fixed-rate mortgage (the “Saver” plan) and a variable-rate. However, this year the FHA eliminated Standard Fixed Rate HECMs, which have higher upfront fees and more generous loan amounts.1  Instead, the FHA now only allows “Saver” plans for fixed-rate mortgages, which charge lower fees but offer 10 percent to 20 percent less payout than standard mortgages.

Make sure your mortgage lender explains all of your financial options when seeking a loan.  They need to disclose information about the financial implications of a reverse mortgage.  Because a reverse mortgage is a huge investment of assets it is important to seek a qualified lender with a good track record of guiding clients through the process.  Online reverse mortgage calculators can help you get an idea of how valuable a reverse mortgage loan may be to you.  In today’s economy they are undoubtedly a valuable option for homeowners.

Filed Under: Basics Tagged With: basics, criteria, finance, lender, property

  • « Previous Page
  • 1
  • 2
reverse mortgage numbers

Understanding your available funds

The amount of money available to you under a FHA-insured HECM loan is called the Principal Limit.  The Principal Limit is generally determined by your home’s appraised value, the age of the youngest of the Borrower or his or her spouse if the spouse is not a Borrower, subject to an overall program limit of […]

reverse mortgage repairs

Reverse Mortgage Repair FAQ

How are required repairs determined? Repairs required to meet HUD Minimum Property Standards and Guidelines may be required as a result of the property appraisal report and/or a required minimum inspection report(s) indicating property deficiencies. Who pays for repairs? Repair costs are paid from the reverse mortgage proceeds, either at closing, if completed prior to […]

reverse mortgage counseling

Los Angeles Reverse Mortgage Counseling

HUD certifies housing counselors around the country to give homeowners impartial education about reverse mortgages. Reverse mortgage counseling is a mandatory part of the reverse mortgage application process and is typically completed just before or after completing an application for a reverse mortgage. Reverse mortgage counseling can be done over the phone with one of […]

reverse mortgage los angeles

Los Angeles Reverse Mortgage Lender

Los Angeles, California We know that a reverse mortgage on your home is more than just a business transaction. Your home is where live and play and where you’ve made important memories. Our agents understand this, and they know how to make the complex process of a reverse mortgage on your property easier and more […]

no fee reverse mortgage

No Fee Reverse Mortgage

Based on information dated 6/24/14 The truth about the No Fee Reverse Mortgage If you are looking for a No Fee Reverse Mortgage, good luck! Despite what common ads may indicate, there is no such thing as a No Fee Reverse Mortgage. I hate to break it to you, but every single HUD approved reverse […]

Contact Information

Address
840 Apollo St. Ste. #100
El Segundo, CA 90245

Phone
888-866-8152

  • Email
    info@reversemortgagela.com
  • Hours
    Monday - Friday: 7:00 am - 6:00 pm
    Saturday: 10:00 am - 8:00 pm
    Sunday: Closed

    Recent Tweets

    • New reverse mortgage calculator http://t.co/YuKCuouAvB. #reversemortgageover a year ago
    • Reverse Mortgage Changes https://t.co/M1pslvddExover a year ago
    • #reversemortgage in Los Angeles http://t.co/91wjwKHV65over a year ago
    • About Us
    • Information
    • Calculator
    • Resources
    • Blog
    • Contact
    • Licensing

    This material is not from HUD or FHA and has not been approved by HUD or a government agency.

    • About Us
    • Information
    • Calculator

    Copyright © 2019 — Reverse Mortgage Professionals • All rights reserved.

    Reverse Mortgage Professionals dba of Aegean Financial · CA Bureau of Real Estate – Real Estate Broker, Aegean Financial, BRE #01478751, NMLS #157935, CA Bureau of Real Estate 877-373-4542 (California Finance Code 22162, California Business and Professions Code 17539.4, 10236.4, 10140.6) · WA NMLS CL-157935 · TX NMLS #329682, LA #187533 Complaint Recovery/Fund Notice AEGEAN FINANCIAL, INC. IS LICENSED UNDER THE LAWS OF THE STATE OF TEXAS AND BY STATE LAW IS SUBJECT TO REGULATORY OVERSIGHT BY THE DEPARTMENT OF SAVINGS AND MORTGAGE LENDING. ANY CONSUMER WISHING TO FILE A COMPLAINT AGAINST AEGEAN FINANCIAL, INC. SHOULD COMPLETE, SIGN, AND SEND A COMPLAINT FORM TO THE DEPARTMENT OF SAVINGS AND MORTGAGE LENDING, 2601 NORTH LAMAR, SUITE 201, AUSTIN, TEXAS 78705. COMPLAINT FORMS AND INSTRUCTIONS MAY BE DOWNLOADED AND PRINTED FROM THE DEPARTMENT’S WEB SITE LOCATED AT http://www.sml.texas.gov OR OBTAINED FROM THE DEPARTMENT UPON REQUEST BY MAIL AT THE ADDRESS ABOVE, BY TELEPHONE AT ITS TOLL-FREE CONSUMER HOTLINE AT 1-877-276-5550, BY FAX AT (512) 475-1360, OR BY E-MAIL AT SMLINFO@SML.TEXAS.GOV. THE DEPARTMENT MAINTAINS THE MORTGAGE BROKER RECOVERY FUND TO MAKE PAYMENTS OF CERTAIN ACTUAL OUT OF POCKET DAMAGES SUSTAINED BY BORROWERS CAUSED BY ACTS OF LICENSED RESIDENTIAL MORTGAGE LOAN ORIGINATORS. A WRITTEN APPLICATION FOR REIMBURSEMENT FROM THE RECOVERY FUND MUST BE FILED WITH AND INVESTIGATED BY THE DEPARTMENT PRIOR TO THE PAYMENT OF A CLAIM. FOR MORE INFORMATION ABOUT THE RECOVERY FUND, PLEASE CONSULT SUBCHAPTER F OF THE MORTGAGE BROKER LICENSE ACT ON THE DEPARTMENT’S WEB SITE REFERENCED ABOVE