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Irvine, California 92612

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A Family Guide to Reverse Mortgages

Reverse Mortgage Loan Information for Children and Caregivers

We encourage loved one to get involved and go through the loan process alongside family members, so that everyone understands how a reverse mortgage loan works.  We realize that a reverse mortgage loan is a big financial decision and we suggest your family discuss a reverse mortgage as a potential solution to common problems.

Caring for an aging loved one can be challenging.  As an adult child and caregiver, some of the difficulties you may encounter daily include having less time for other family members and yourself, balancing work and caregiving, dealing with physical and mental stress and dealing with mounting financial obligations that can be associated with senior care.

Luckly, Home Equity Conversion Mortgage (HECM) loans, also known as a reverse mortgage, may be availble to help older Americans access the weath in their homes.  This powerful retirement funding tool taps into home equity to help pay for the care that your loved one may need, and enables them to continue living in their home.

We are dedicated to informing seniors, their adult children and caregivers about how a reverse mortgage loan can enhance their lives during retirement and help them age in place.

What is a HECM Reverse Mortgage?

A HECM is a government insured loan for those aged 62 and older, with no monthly loan payments for as long as the borrower lives in the home, continues to pay taxes and insurance, maintains their home, and otherwise complies with the loan terms.

The Problem

Senior care is one of the most significant life events, yet most seniors don't plan for it, or their plans don't adequately take into account the rising cost of long-term senior care.  Many American believe that long-term care will be paid for by their medical insurance.  The reality is that Medicaid will pay for most long-term care patients in the US, but it is targeted to those with low income and limited assets.  For individuals and families in the middle-class, can can come at a great price.

72% of Americans become improverished after just one year of nursing home care. (According to a study dated April 2015.)

70% of people over age 65 will need some form lof long term care (according to the US Department of Health and Human Services.)

100 days is the maximum numbers of days of services per benefit period in a skilled nursing facility stay that Medicare may cover (according to the US Department of Health and Human Services.)

A Solution for Senior Care

  • Pay for in-home care services, reducing the need for expensive nurisng homes and offering improved quality of care
  • Help fund in-home care, ranging from light household chares to 24-hour nursing care, which can be ramped us as necessary
  • All acces to a standby HECM REvise Mortgage growing line of credit, which can be set up in advance, BEFORE care is needed so you are ready when additional unplanned expenses arise
  • Provide tax-free proceeds (while loan proceeds are not taxable income, property taxes must be paid, consult your tax advisor)

How to Qualify

Qualification is simple and easy and is based on the factors below:

  • The borrower on title must be 62 years or older (a non-borrowing spouse may be under age 62)
  • The home must be the borrower's primary residence
  • The borrower must own the home and meet the financial requirements of the HECM program

How Does it Work?

A HECM reverse mortgage allows your loved ones to access their home equity and turn it into cash, a line of credit or a combination of the two.

The loan amount they qualify for is based on their age, their home's appraised value and current market interest rates.

With a reverse mortgage loan, there are no monthly mortgage payments required, but the borrower is responsible for paying property taxes, maintenance and home insurance.  When the last borrower or eligible non-borrowing spouse leaves the home (or does not comply with the oan terms), the loan blance, including any fees and interest, becomes due.

Call (949) 427-2999 to discuss your individual financial goals today!

A reverse mortgage increases the principal mortgage loan amount and decreases home equity (it is a negative amortization loan.)  Borrowers are responsible for paying property taxes and homeowner's insurance (which my be substantial.) We do not establish and escrow for disbursements of these payments.  A set-aside account can be set up to pay taxes and insurance and may be required in some cases.  Borrowers must occupy the home as their primary residence and pay for ongoing maintenance; otherwise the loan becomes due and payable.  The loan also becomes due and payable when the last borrower, or eligible non-borrowing survising spouse, dies, sells the home, permanently moves out, defaults on taxes or insurance payments, or does not otherwise comply with the loan terms.  These material are not from HUD or FHA and were not approved by HUD or a government agency.

Pre-qualify for a loan in a few simple steps

Call Us Today!  (949) 427-2999

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