Do you want to:
want to age In place without worrying about your finances?
eliminate your monthly mortgage so you can truly retire?
update your home to live more safely and comfortably?
help your family with significant expenses such as college tuition?
worry about unexpected expenses and want a line of credit?
We are here to help. And we have good news for you.
A lot has changed in the last 15 years in the reverse mortgage world, including more regulations to protect homeowners and their heirs;
More loan options are finally available for higher property values in the SF Bay Area; and
We are local, and are happy to meet you in person to help you navigate the whole process.
Reverse Mortgage Solutions
If you own your home and have at least 50% equity in your home and are age 55+ , a reverse mortgage can unlock the equity in your home to achieve your goals.
Q & A
What amount can you receive from a reverse mortgage?
A reverse mortgage is a special type of home loan that access a portion of your home’s equity to get income to use as you wish—no monthly mortgage payments required. But unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower(s) no longer use the home as their principal residence or fails to meet the obligations of the mortgage. A borrower can also use reverse mortgage to purchase a primary residence
How can you use the money?
The proceeds are used to pay off your existing mortgage so no more mortgage payment. You get the rest as a lump sum, monthly payment, line of credit, or any combination of these. Use it in any way you choose, such as:
• Pay bills and everyday expenses
• Help cover the cost of healthcare
• Make home repairs and upgrades
• Open a line of credit for unexpected expenses
• Help out family members
How can you receive the money?
Depending on the specific program you choose, there is a range of options for receiving the proceeds of a reverse mortgage, including:
• A monthly income stream
• A lump sum payment
• A line of credit
• Any combination of the above
What amount can you receive from a reverse mortgage?
The amount of money that you can receive from a reverse mortgage depends on a number of factors, such as your age, the type of reverse mortgage you select, current interest rates, and the appraised value of your home.
How does the reverse mortgage process work?
The process of obtaining a reverse mortgage is simple and there are few
key steps. After helping you determine if this is the right product for you,
we will assist you with:
1. Completing the application
2. Receiving the required independent counseling
3. Having an appraisal completed on your home
4. Closing your loan and receiving your funds
Can you purchase a home with a reverse mortgage?
• Must be 55 or older
• New property must meet outlined requirements; it must be a single-family residence, 2-4 unit property, townhome, or condo
• New home must be your primary residence
• Maintain new property and keep up-to-date on property taxes, insurance, and any HOA fee
What is the difference between a reverse and a traditional mortgage?
Both are mortgages on a property that belongs to you. Instead of paying into your home every month with a traditional mortgage, you pull money out with a reverse mortgage and repay the loan when you leave the home.
These funds can come as a lump sum, installments, line of credit, or in a combination of these options. While the loan balance accrues interest over time, you are not required to make monthly mortgage payments on the loan as long as you live in the home.
There are several types of reverse mortgages. What’s the difference?
Traditional Home Equity Conversion Mortgage (HECM). A HECM is insured by the Federal Housing Administration (FHA) and has a loan limit of up to $970,800.
Proprietary reverse mortgage of up to $4 million with comparable protections to a HECM.
Traditional mortgages have costs attached. What about reverse mortgages?
Like a traditional mortgage, there are costs associated with a reverse mortgage. Most of those upfront fees can be rolled into your loan, and hence minimize your out-of-pocket costs. Along with interest, you may have an origination fee, mortgage insurance premium, property appraisal, typical third party fees, and a modest charge for independent counseling.
How am I protected with a reverse mortgage?
Reverse mortgages are non-recourse loans, meaning you or your heirs will not be responsible for more than what the home is worth
All borrowers are required to attend independent educational counseling to ensure they are fully aware of how the loan works
Your home still belongs to you and you will not lose your home as long as you stay current on the terms of the loan
All borrowers go through a financial assessment to ensure a reverse mortgage is a viable solution
How is a reverse loan repaid?
The loan is repaid when the borrower or qualified non-borrowing spouse no longer lives in
the home. Often, the estate will sell the home to pay the loan, but heirs also have the option
to pay off the loan by other means and keep the property.
The most important decision to make about a Reverse Mortgage is whom you choose to help you through the process.
We are local. We have lived in California and the area for more than 40 years. We understand the complexity of aging in place, and many people’s desire to leave a legacy for the next generation.
In most case, we will come and meet you in person. You will learn about us as we learn about your needs and goals. We are not just someone on the end of the phone call or email.
We believe reverse mortgage is a powerful tool. However, we understand it is not for everyone. We will help you understand whether it is right for you.
Getting a reverse mortgage is one of the biggest decisions you will make.
Work with someone local who is compassionate, has high integrity, and has help many other SF Bay Area residents with their financing needs. Call Abundance at 408-910-6168.
For certain proprietary reverse mortgage products only.
The borrower must meet all loan obligations, including living in the property as the principal residence and paying property charges, including property taxes, fees, hazard insurance. The borrower must maintain the home. If the homeowner does not meet these loan obligations, then the loan will need to be repaid.
This material is not from HUD or FHA and has not been approved by HUD or any government agency. Abundance 99, Inc. is licensed in California | Equal Housing Opportunity | CA DRE #01864049, NMLS #346570 | 105 Serra Way #448, Milpitas, CA 9505 | Terms subject to change without notice | For licensing information go to: www.nmlsconsumeraccess.org