Reverse Mortgage

Reverse Mortgage


A reverse mortgage is a loan available to seniors over the age of 62 which allows them to convert equity in their home into cash. These loans were created to give seniors access to cash for expenses such as home improvements, unexpected medical costs, and in-home care by utilizing the accumulated equity in their homes.

This type of loan is called a reverse mortgage because instead of the borrower making monthly payments to their lender as they would with a traditional mortgage, the lender makes payments to the borrower. Unlike a traditional home equity loan or second mortgage, a reverse mortgage does not have to be repaid until the borrower no longer occupies the home as their primary residence.

The most common reverse mortgage is the Home Equity Conversion Mortgage (HECM) which is insured by the FHA. An alternative option is the Proprietary Reverse Mortgage which is not backed by the federal government.

Common Reverse Mortgage Questions:

Do I own the home if I get a Reverse mortgage?

Absolutely, you will stay on title and the surviving heirs will have to refinance the loan OR sell the property within one year, so you never lose the property.

How to do qualify for a Reverse mortgage?

You must reside in the property as your primary residence and be at least 62 years and over, and have equity in the property.

What payments do I need to make having a reverse mortgage?

Need to pay property taxes and home owner insurance and if there is a monthly HOA.

Could I do a Reverse mortgage on a purchase?

Absolutely, as long as you meet the loan to value and age limit.

Is Reverse mortgage a good idea?

For seniors who does not have the ability to make mortgage payments and using the equity to release them from making the payments. Enjoy your golden years without any stress!

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Company NMLS: 240639
Licensed by DRE: 01264348

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National Pacific Lending
9891 Irvine Center Drive Suite 150
Irvine, CA 92618

(949) 362-1400

SAT-SUN: By appointment only