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Reverse Mortgages in South Pasadena
South Pasadena homeowners sitting on decades of equity have options beyond selling. Reverse mortgages let you tap that equity while staying put.
Most South Pasadena homes are Craftsmans and Spanish Revivals built 70-100 years ago. Owners who bought in the 80s or 90s often have $800K+ in equity with no debt.
This loan works when you're 62+ and want income without payments. You keep the title. The loan gets repaid when you sell, move, or pass.
You must be 62 or older. All borrowers on title must meet this age requirement.
The home must be your primary residence. You need sufficient equity—most lenders want 50% or more. Credit matters less than with traditional loans.
You're still responsible for property taxes, insurance, and maintenance. Fall behind on those and the loan can be called due.
Reverse mortgages require specialized lenders. Not all wholesale partners offer them. We work with lenders who understand California's older housing stock.
Appraisals take longer on vintage South Pasadena homes. Foundation issues, knob-and-tube wiring, or original plumbing can complicate valuations.
HUD counseling is mandatory before closing. This protects you from predatory terms. Plan 30-60 days from application to funding.
Most South Pasadena seniors use reverse mortgages to delay Social Security or supplement fixed income. A few want to help grandkids with college without selling.
The biggest mistake is not planning for heirs. Make sure your kids know this loan must be repaid when you die or move to assisted living.
Interest accrues monthly and compounds. A $300K reverse mortgage can balloon to $500K over 15 years. Your heirs inherit less equity.
Consider a HELOC if you only need short-term cash and can handle payments. Reverse mortgages cost more in fees and interest than traditional loans.
HELOCs and home equity loans require monthly payments. Reverse mortgages don't. That's the trade-off for higher lifetime costs.
A $200K HELOC at 9% costs $1,500/month. A reverse mortgage costs nothing monthly but accrues $1,500/month in deferred interest.
If you can afford payments, HELOCs are cheaper long-term. If fixed income is tight, reverse mortgages preserve cash flow.
South Pasadena property taxes run 1.1-1.2% of assessed value. You must pay these on time or risk foreclosure even with a reverse mortgage.
Many South Pasadena homes need seismic retrofitting or updated electrical. Lenders may require repairs before funding if safety issues exist.
Los Angeles County reassesses on ownership transfer. Your heirs will face higher property taxes if they keep the home after repaying the reverse mortgage.
No, as long as you pay taxes, insurance, and maintain the property. You retain ownership until you sell, move permanently, or pass away.
FHA-insured reverse mortgages are non-recourse. You or your heirs never owe more than the home's value at sale.
Yes, but the reverse mortgage must pay off your existing loan first. You need enough equity to clear that debt and still borrow.
It depends on your age, home value, and interest rates. Older borrowers and higher home values qualify for more funds.
No, reverse mortgage proceeds don't count as income. Social Security and Medicare benefits remain unchanged.
Yes, you can sell anytime. The reverse mortgage gets paid off at closing. You keep any remaining equity.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.