|A Reverse Mortgage is a financial tool designed by the federal government as a form of financial relief for homeowners 62 and older. It allows seniors to stay in their home, eliminate their current mortgage payment, and access their equity – tax-free! Unlike traditional “forward” home loans or second mortgages, no repayment is required until the homeowner(s) no longer occupies the property as their primary residence.The Senior Equity Group has helped hundreds of Seniors realize their dreams of living a payment free lifestyle and providing significant increases in monthly cash flows to support enhanced “worry free” lifestyles. We specialize in Reverse Mortgages, so our goal is to make the process as simple as possible for you. A complete no hassle experience from start to finish. We work with only the best and largest banks in the industry. Our FHA/HUD approved programs and interest rates are the best available.Contact us for Reverse Mortgage information and our no obligation Reverse Mortgage informational package. The Senior Equity Group is based out of Los Angeles CA.
About: Los Angeles Reverse Mortgages
Los Angeles County is a county in California and is the most populous county in the United States. Figures from the U.S state the county is home to 88 incorporated cities and many unincorporated areas. The coastal portion of the county is somewhat urbanized, though there is a large expanse of lesser populated desert inland areas in the Santa Clarita Valley, and especially in the Antelope Valley which encompasses the northeastern parts of the county and adjacent eastern Kern County, lying just north of Los Angeles County. All of southern Los Angeles County, north to about the center of the county, is heavily urbanized. According to the United States Conference of Mayors, if Los Angeles County were a nation, it would boast a GDP among the twenty largest countries in the world.
Over 7000 Home Equity Conversion Mortgages have been approved by The HUD Home Ownership Center in Los Angeles. This places Los Angeles county in the Top 5 regions for Reverse Mortgage in the country.
What is the process for a Los Angeles Reverse Mortgage
If you are a homeowner age 62 or older and have paid off your mortgage or have only a small mortgage balance remaining, and are currently living in the home in Los Angeles, you are eligible to participate in FHA’s Reverse Mortgage program. The program allows you to borrow against the equity in your home.
Unlike ordinary home equity loans, an FHA Reverse Mortgage HECM does not require repayment as long as the home is your principal residence. Lenders recover their principal, plus interest, when the home is sold or refinanced. The remaining value of the home goes to you or your heirs. You can never owe more than your home’s value.
If the sales proceeds are insufficient to pay the amount owed, FHA will pay the lender the amount of the shortfall. FHA collects an insurance premium from all borrowers to provide this coverage.
There are no asset or income limitations in order for you to be eligible for a HECM. In addition, there is no limit on the value of homes qualifying for a HECM. The value of your home will be determined by an appraisal. However, the amount that you may borrow is derived from the lower of the appraised value or the FHA HECM mortgage limit of $625,500. You are charged an upfront insurance premium of 2 percent of the maximum claim amount that may be borrowed plus a 0.5 percent annual premium.
The amount you can borrow depends on your age, the current interest rate, other loan fees, and the appraised value of your home or FHA’s HECM mortgage limit for your area, whichever is less. Generally, the more valuable your home is, the older you are, and the lower the interest, the more you can borrow. If there is more than one owner, the age of the youngest owner is used to determine the amount you can borrow.
The Los Angeles Reverse Mortgage Amount Will Be Based On:
- Age of the youngest borrower
- Current interest rate
- Lesser of appraised value or the HECM FHA mortgage limit
- Be 62 years of age or older
- Own the property outright or have a small mortgage balance
- Occupy the property as your principal residence
- Not be delinquent on any federal debt
- Participate in a consumer information session given by an approved HECM counselor
The following eligible property types must meet all FHA property standards and flood requirements:
- Single family home or 1-4 unit home with one unit occupied by the borrower
- HUD-approved condominiums
- Manufactured homes that meet FHA requirements
- No income or credit qualifications are required of the borrower
- No repayment as long as the property is your principal residence
- Closing costs may be financed in the mortgage