Who Qualifies For A Reverse Mortgage in Bakersfield?
To qualify for a reverse mortgage, you must be 62 years and must live in your home as your primary residence for the duration of the loan. The older you are, the more funds you can get from a Home Equity Conversion Mortgage (HECM) reverse mortgage.
Borrowers need at least 50% equity on your home to qualify for a reverse mortgage.
It is also required that you meet with a Department of Housing and Urban Development counselor before you apply for a reverse mortgage. This session ensures that potential borrowers fully understand how the loan works and the associated costs.
If you are interested in a reverse loan in Bakersfield, you can get in touch with Accelerated Lending Group to learn more.
How Does A Reverse Mortgage Work?
If you are buying Bakersfield real estate and you need funding for your project, a reverse mortgage may work if you qualify.
A 62-year-old homeowner who has considerable equity can borrow against the value of his home and receive either a lump sum, fixed monthly payment, or line of credit.
Unlike a forward mortgage, reverse mortgages do not require homeowners to make monthly payments.
The whole loan balance becomes due and payable when the borrower dies, sells the home, or moves out permanently.
Does a reverse mortgage interest you? Contact an experienced Bakersfield mortgage broker to learn more.
Reverse Mortgage Requirements
Property Type
Owners of a house, condo, townhouse, or manufactured home built on or after June 15, 1976, may be eligible for a reverse mortgage. Cooperative housing owners are not eligible for reverse mortgages since they don’t own the real estate they live in according to FHA rules.
Fees
Borrowers are required to pay an origination fee, mortgage insurance premium, standard closing costs, loan servicing fees, mortgage insurance premiums, and interest.
Collateral Protection
Borrowers must stay current on property taxes and homeowner’s insurance and fees if applicable. Keeping the home in good condition is required. If you stop paying your property taxes, your local tax authority can seize your home.
If you stop living in the home for more than a year, you’ll have to repay the loan.
How Much You Can Borrow
The amount of money you’ll receive from a reverse mortgage depends on the lender and payment plan.
You can’t borrow 100% of what your home’s worth since part of your home equity is used to pay loan expenses including mortgage premiums and interest.
How much you can borrow is based on the initial principal limit which was lowered by the federal government last Oct 2017.
Do you want to know how much your reverse mortgage costs? Accelerated Lending Group of Bakersfield, CA can help you out.
Interested in Applying for a Reverse Mortgage?
If you are a homeowner over 62 years old and you are looking for liquid cash flow, a Reverse mortgage loan by Accelerated Lending Group maybe your best option.
Get in touch with one of our loan experts today to learn more.
* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.