Reverse Mortgage Loan Programs

A reverse mortgage can help eligible older homeowners access a portion of their home equity while continuing to live in their home. Depending on the program, funds may be used to pay off an existing mortgage, supplement retirement income, cover major expenses, or create a line of credit for future needs.

Crestico helps homeowners compare reverse mortgage loan programs based on their home, financial situation, and long term goals.

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Reverse mortgage loan programs for homeowners accessing home equity

What Is a Reverse Mortgage?

A reverse mortgage is a type of home loan that allows eligible homeowners to convert part of their home equity into available funds. Unlike a traditional mortgage, borrowers generally do not make monthly principal and interest payments while the loan remains in good standing.

The homeowner remains responsible for meeting the loan requirements, including paying property taxes, homeowners insurance, maintaining the property, and living in the home as required by the loan program.

Who Can Qualify for a Reverse Mortgage?

Reverse mortgage eligibility depends on the specific program and the borrower’s financial and property circumstances.

In general, eligibility may consider:

The homeowner's age

Primary residence requirements

Home equity and property value

Existing mortgage balance

Property type

Financial obligations such as taxes and insurance

The homeowner's ability to meet ongoing property requirements

A reverse mortgage is generally designed for older homeowners who want to use home equity while continuing to live in their primary residence.

Because qualification requirements vary between programs, speaking with a qualified reverse mortgage professional can help determine which options may be appropriate.

How Can Reverse Mortgage Funds Be Used?

Depending on the reverse mortgage program and the borrower’s circumstances, available proceeds may provide greater financial flexibility.

Homeowners may consider using reverse mortgage proceeds to:

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Pay off an existing mortgage

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Supplement retirement cash flow

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Handle unexpected financial needs

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Create a reserve through a line of credit

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Support the purchase of a new primary residence through an eligible purchase program

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Step 1

Check Eligibility

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Step 2

Payment Option

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Step 3

Get Approved

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Step 4

Close the Loan

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Step 5

Repayment & Loan Terms

Reverse Mortgage Loan Programs Available

Crestico offers access to several reverse mortgage options. The right program depends on factors such as your age, home value, property type, existing mortgage balance, and financial objectives.

FHA Reverse Mortgage

An FHA insured reverse mortgage, commonly known as a Home Equity Conversion Mortgage, or HECM, is one of the most widely recognized reverse mortgage programs.

Eligible homeowners may be able to use a HECM to access home equity while remaining in their home. The available proceeds and loan terms depend on the borrower’s circumstances, the property, and applicable program requirements.

Proprietary Reverse Mortgage

A proprietary reverse mortgage is a private reverse mortgage program that may provide an alternative to FHA insured options for qualified homeowners.

These programs can be particularly relevant when the homeowner’s property value or financial circumstances make a proprietary reverse mortgage worth considering.

Program availability, eligibility requirements, loan amounts, and terms vary by lender.

Reverse Mortgage for Purchase

A reverse mortgage for purchase allows an eligible homeowner to purchase a new primary residence using a reverse mortgage.

This option may be useful for homeowners who want to move into a more suitable home while using available assets and proceeds toward the purchase rather than taking on a traditional monthly mortgage payment.

Reverse Mortgage Options for California Homeowners

Crestico works with homeowners seeking mortgage solutions throughout California, including the Los Angeles and Southern California markets.

Reverse mortgage options can vary based on the property location, property type, homeowner’s circumstances, and available lending programs.

Whether you own a single family home, condominium, or another eligible property type, Crestico can help you review available reverse mortgage options and determine what may fit your situation.

Important Reverse Mortgage Considerations

A reverse mortgage is a financial decision that should be evaluated carefully.

Before moving forward, homeowners should understand the costs, interest, loan balance, property obligations, repayment requirements, and potential impact on their financial plans.

A reverse mortgage does not mean the homeowner gives up ownership of the home. However, the homeowner must continue meeting the obligations required under the loan.

The best option depends on your financial goals, home equity, property, and long term plans.

Frequently Asked Questions

What is the main purpose of a reverse mortgage?

A reverse mortgage allows eligible homeowners to access a portion of their home equity while continuing to live in their primary residence, subject to the loan’s requirements.

What types of reverse mortgage programs are available?

Common options include FHA insured reverse mortgages, reverse mortgages for purchase, and proprietary reverse mortgage programs. Eligibility and terms vary by program.

Do I still own my home with a reverse mortgage?

Yes. A reverse mortgage does not transfer ownership of the home to the lender. The homeowner must continue meeting the loan and property obligations.

Can a reverse mortgage pay off my existing mortgage?

Yes. Depending on the program and available proceeds, a reverse mortgage can be used to pay off an existing mortgage as part of the transaction.

How do I find out which reverse mortgage is right for me?

The appropriate program depends on factors such as your age, home value, equity, property type, existing mortgage, and financial goals. A reverse mortgage consultation can help you compare available options.

Turn Your Home Equity into Lasting Financial Freedom

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