A new Jumbo Reverse Mortgage program was recently released for California seniors. This new reverse mortgage program will benefit Orange County seniors, aged 62 and older, who own homes valued at more than $625,500. Since 2007 the FHA HECM (Home Equity Conversion Mortgage) has been just about the only viable reverse mortgage product available. But in many parts of Orange County, the FHA reverse mortgage loan limits are not high enough for seniors to take full advantage of the equity in their home.
Homes Valued Between $500,000 and $6,000,000 will Benefit From This Reverse Mortgage Program
Homeowners in areas such as Newport Beach, Laguna Beach, Huntington Beach and other coastal areas have not been able to leverage their home equity due to the relatively low FHA Reverse Mortgage loan limits. This new Reverse Mortgage product is available to those who are at last 62 years if age, just like the FHA Reverse Mortgage (HECM) program. This program can be a big assist to retirement planning.
Buy a Home with This Jumbo Reverse Loan
This program can be used to purchase a home. From application to funding can take less than 30 days. Many people don't realize a reverse mortgage can be used to purchase a home. As long as the home will be a primary residence this can be a great way for a senior to purchase a home when their income may not qualify them for a Conventional "Forward" mortgage program. Properties eligible for this loan program include Single Family homes, Planned Unit Developments (PUD), and Townhomes (Row Home). Condo's are not eligible for this program. Also, as per the FHA HECM program, the home must be the owners primary residence. The property cannot be a Second Home or investment property. A borrower must spend at least 183 days of the calendar year in the subject property. Married spouses or other co-borrowers may be living apart because one of them is temporarily or permanently in a health care facility; however, at least one borrower must be living in the subject property in order for the loan to be closed.Appraisal and Credit Requirements for the Jumbo Reverse Mortgage
Two appraisals are required, one paid for by the homeowner and one paid for by the lender. The lender does have a minimum FICO score requirement, which is not required on the FHA HECM product. For a Orange County Jumbo Reverse mortgage, the homeowner must have a minimum 700 FICO score. Also, the borrowers cannot have had a bankruptcy within the past 5 years. To learn more information about this new California Jumbo Reverse Mortgage loan product, contact a local California Reverse Mortgage Specialist.
Authored by Tim Storm, an Orange County, CA Reverse Mortgage Loan Officer – Please contact my office at Trust One Mortgage for more information about an Orange County, CA Reverse Mortgage. 877-786-4243 x 7.
I will have to spend more time looking at the reverse mortgage. I really do not know all there is to know about it.