If you’re a retiree living in the beautiful state of California, you may be interested in a reverse mortgage. Reverse mortgages have been proven to be beneficial to many people every single year. Let’s take a look at the reverse mortgage qualifications for California residents.
How Can I Qualify for a Reverse Mortgage in California?
In California, reverse mortgage qualifications are standard and there are no special requirements. Like other states, there is a required financial assessment and counseling that must be approved by the Department of Housing and Urban Development. To qualify for a reverse mortgage, you must:
- Be 62 years of age or older
- Have paid at least 50% of your mortgage or fully own your home
- Reside at the property you wish to take a reverse mortgage out on as your principal residence for the majority of the year
- Have absolutely no delinquent federal debt
- Be up to date on all of your home maintenance expenses, such as property taxes, insurance, and homeowners association (HOA) fees
How Does it Work?
When you take out a reverse mortgage, you borrow against the equity of your principal home. By doing so, retirees are able to gain access to cash that may have been otherwise inaccessible. After passing the reverse mortgage qualifications and being approved, you can use your cash for:
- Home renovations or repairs – Make your home more age-appropriate and finally have the kitchen you’ve dreamed off
- Purchasing a new home – If you would like to downsize or move to another neighborhood, taking out a reverse mortgage gives you an opportunity to do so, without making monthly payments
- Securing retirement – If you find yourself having less cash than you planned for after retirement, taking out a reverse mortgage is a great way to gain a lump sum or monthly payments from your assets
- Eliminating existing debt – Use the cash from your reverse mortgage to eliminate any existing debt that has become unaffordable such as medical bills and credit card debt
How Much Will I Get Paid?
After meeting the reverse mortgage qualifications, you may wonder how much cash you’re actually going to get paid. The exact amount you will receive depends on how much equity you have available in the current value of your home, your exact age, your interest rate, and the loan payout option you choose. We recommend getting a free quote to get an idea of how much you may receive from your reverse mortgage.
Do I Meet the Reverse Mortgage Qualifications?
If you’re not sure how you can qualify for a reverse mortgage in California give us a call today. We would be more than happy to walk you through the process and ensure you fully understand everything there is to know. Contact us to learn more about the reverse mortgage process.