A jumbo reverse mortgage¹ loan is one that many commonly refer to as the 'reverse mortgage' loan. A jumbo reverse mortgage may help qualified homeowners 60 and older enhance their cash flow during retirement. Jumbo reverse mortgage loans are unique and their features and requirements vary by the lender offering them.
HOW DO I QUALIFY FOR A REVERSE MORTGAGE LOAN?
To become eligible for a reverse mortgage, you must be at least 60 years old and own your home. You must have enough equity in the house to pay off any outstanding balances, and your home must be occupied as your principal residence. Minimal income and credit standards must also be met. Imagine living in your home without a traditional monthly mortgage payment², or instead enjoying monthly loan proceeds from the years you’ve invested in your home. A reverse mortgage is a unique mortgage designed for homeowners 60 and older. You may enjoy access to part of the value of your home and the freedom and comfort of the home you’ve known for so many years. It’s your home, now you can put it to work for you.
Reverse mortgage borrowers retain ownership and title to their home². It’s yours just as it was before, but now you may benefit from the equity that’s been building in your home for years. In order to retain the home when the reverse mortgage becomes due, the heirs may choose to keep the home by paying off the current outstanding loan balance or 95% of the home's appraised value, less customary closing costs and real estate commissions. After you get a reverse mortgage on your primary residence, repayment is not due until the home is sold, the last borrower passes away or permanently leaves the home². Borrowers also must keep the home in good condition, pay property taxes and keep homeowner’s insurance coverage to avoid the loan becoming due and payable. While proceeds from a reverse mortgage are not subject to personal income taxation, borrowers should seek tax advice on how proceeds may affect government needs-based programs such as Medicaid and Medi-Cal.³
THE FACTS
- A jumbo reverse mortgage is a specialized loan for homeowners 60 and older.
- It allows older homeowners to access a portion of the value of their home.
- Borrowers maintain title and ownership of their home.²
- Proceeds from a jumbo reverse mortgage are not subject to personal income taxation, but borrowers should seek tax advice on how proceeds may effect government needs-based programs such as Medicaid and Medi-Cal.³
- It is not a government grant, but a loan that is repaid in the future when the home is sold or the last borrower dies or permanently leaves their residence.
- A reverse mortgage is eligible only for the borrower’s primary or principal residence.
- A reverse mortgage loan is secured by a mortgage on the home and failure to comply with loan terms could result in foreclosure.
¹For these loan programs we are a Mortgage Broker only, not a mortgage lender or mortgage correspondent lender. We will arrange loans with third-party providers but do not make loans for these programs. We will not make mortgage loan commitments or fund mortgage loans under these programs.
²There are some circumstances that will cause the loan to mature and the balance to become due and payable. The borrower is still responsible for paying property taxes, homeowner’s insurance and maintaining the property. Failure to do so could make the loan due and payable. Credit is subject to age, income standards, credit history, and property qualifications. Program rates, fees, terms, and conditions are not available in all states and subject to change.
³Borrowers should seek professional tax advice regarding reverse mortgage proceeds.
