NMLS#: 229025 | CA DRE # 00880390 | Option Funding, Inc. NMLS#: 163400
Reverse loans are a potential tool seniors can use to leverage their monthly income while preserving their savings or retirement portfolio funds. They are the most regulated mortgage in the lending industry, with many safeguards to protect borrowers and their families from financial abuse, excessive fees, or predatory lending.
They are a "non-recourse" mortgage, which means that the borrowers and/or their estate can never owe more than the value of the property when the loan is repaid, and if the FHA HECM happens to be the choice a senior selects for their loan, it is insured by FHA, providing additional protection for the borrower and their estate.
Like any other mortgage, it is a lien against the subject property; however, the borrower is not required to make mortgage payments, but remains obligated to pay property taxes, hazard insurance, and any other fees associated with owning and maintaining the home.
There is no "loan term" or prepayment penalty, and the proceeds can also be used to purchase a home if seniors wish to "right-size" into a new home that better suits their lifestyle.
That depends on several factors. The age of the youngest borrower ( If there are two borrowers), the value of the property or the Principal Limit, and whichever is less.
For a Proprietary Mortgage, it would be a percentage of the appraised value, since Principal Limits don't apply. And then the loan program, either Fixed or an ARM, and then whatever the interest rate is on the selected loan option. For HECM Loans, the amount could be $300,000, and for proprietary mortgages, considerably more than the HECM.
Homeowners as long as they are age 62 or older and the property is a single-family residence, FHA-approved condo, manufactured home ( Must not be designated as a Condo and must be obligated to pay property taxes and be built after June 1976), or 2-4 units, but must occupy one of the units.
A Jumbo reverse loan has a minimum age of 55+ for properties that exceed the HUD Lending limit, making more of the home's equity available, up to $4,000,000.
Spouses who are under age 62 may remain on the Title but do not sign the Note and Deed of Trust and can remain in the property under the loan terms if their older borrowing spouse predeceases them.
Once the last borrower passes away and loan servicing is notified by the Estate, they will send out a letter advising said "Estate" that they have 6 months to satisfy repayment of the loan.
The Estate can request an additional 6 months if they can show loan servicing that they are actively selling the property or refinancing it into a traditional loan. The Lender never assumes ownership unless the Estate decides it does not wish to retain the property and returns it to the Lender for foreclosure.
Option Funding, Inc. is a California-owned and operated full-service mortgage brokerage that has proven effective at providing timely, efficient closings on Reverse loans.
Our management team has 33 years of combined industry experience, and our Loan Consultants are licensed and highly experienced in representing the Reverse mortgage program.
We have originated FHA HECM mortgages for many years and have extensive experience guiding clients to the best decision to maximize their goals, with no obligation on their part.
We meet all our clients in the comfort of their home, providing a personalized presentation package of information that helps them make the best-informed decision about whether a Reverse loan is the right choice for them.
We stay in contact with all our customers and are always available to answer any questions they may have long after their loan has funded and closed. The senior community is our #1 priority.
Our staff is well organized and experienced in processing each loan in a timely manner, resulting in a quick close and a satisfying experience for each client.
We are members of the National Association of Realtors, the California Association of Realtors, and several smaller local Boards of Realtors. We belong to the California Association of Mortgage Brokers (CAMB) and are governed by the United States Department of Housing and Urban Development (HUD) with respect to all FHA loans and the Home Equity Conversion Mortgage (HECM).
Option Funding, Inc.
“Professionalism, Dedication & Honesty”
4165 E. Thousand Oaks Blvd.
Suite 260
Westlake Village, CA 91360
NMLS ID 163400
