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Reverse Mortgages in Exeter
Exeter has a higher concentration of homeowners over 62 than most Tulare County cities. Many bought decades ago when home prices were a fraction of current values.
These homeowners often have substantial equity but limited retirement income. A reverse mortgage taps that equity without requiring monthly payments or selling the property.
The loan becomes due when the homeowner moves, sells, or passes away. Until then, no payment obligation exists as long as you maintain the home and pay property taxes and insurance.
You must be at least 62 years old and own your home outright or have significant equity. Most lenders require at least 50% equity after paying off existing mortgages.
The property must be your primary residence. You need sufficient income to cover property taxes, homeowners insurance, and basic maintenance.
Lenders require a financial assessment to verify you can handle ongoing property costs. Poor credit won't disqualify you, but extreme delinquencies on property obligations will.
The home must meet HUD property standards. Single-family homes, 2-4 unit properties where you occupy one unit, and FHA-approved condos all qualify.
Most reverse mortgages in Exeter are HECMs backed by FHA. These carry mandatory mortgage insurance but offer borrower protections and non-recourse guarantees.
Proprietary reverse mortgages exist for higher-value homes but are rare in Exeter where most properties fall within HECM limits. HECM maximums adjust annually based on conforming loan limits.
Not every lender handles reverse mortgages. We work with specialized lenders who process these loans regularly and understand the unique underwriting requirements.
Closing timelines run 30-45 days minimum because of mandatory counseling sessions. Borrowers must complete HUD-approved counseling before applying.
Most Exeter clients choose the line of credit option over lump sum. The unused credit line grows over time, providing increasing access to equity as you age.
Heirs often misunderstand reverse mortgages. The loan balance grows as interest accrues, but heirs can pay off the loan and keep the home or sell and keep remaining equity.
Property tax and insurance delinquencies trigger default even without monthly payments. We see this happen when borrowers underestimate ongoing costs or face unexpected medical bills.
Reverse mortgages work best for homeowners planning to stay put 10+ years. The upfront costs are too high for short-term needs better served by HELOCs or home equity loans.
A HELOC requires monthly payments and approval based on income and credit. Reverse mortgages require no payments and minimal income verification beyond property cost coverage.
Home equity loans give you a lump sum but create new monthly obligations. Reverse mortgages eliminate monthly payments but accrue interest that reduces net equity over time.
Conventional cash-out refinances demand income verification and debt-to-income ratios under 43%. Reverse mortgages ignore DTI since no payment exists.
For homeowners with insufficient retirement income, reverse mortgages often provide the only equity access option. HELOCs and home equity loans require qualifying income.
Exeter property taxes are moderate compared to coastal California, making the ongoing cost burden manageable for most retirees. Still, tax increases can strain fixed incomes.
The city has an aging housing stock. Properties needing major repairs may not pass the required HUD property inspection without upfront work.
Many Exeter homeowners bought 20-30 years ago and have minimal or no mortgage balance. This maximizes available reverse mortgage proceeds compared to recent buyers.
Agricultural economies create property value fluctuations. During downturns, available loan amounts decrease since they're calculated based on appraised value.
Only if you fail to pay property taxes, homeowners insurance, or let the home fall into disrepair. You cannot be foreclosed for non-payment since no monthly payment exists.
It depends on your age, home value, and current interest rates. Older borrowers with higher-value homes access more equity—typically 40-60% of appraised value.
Your heirs can pay off the balance and keep the home or sell it and keep remaining equity. The lender cannot claim more than the home's value.
Yes. You retain title and ownership. The lender has a lien like any mortgage, but you control the property and can sell whenever you choose.
Yes, but reverse mortgage proceeds must first pay off your existing mortgage. You access whatever equity remains after that payoff and closing costs.
No. The IRS treats reverse mortgage proceeds as loan advances, not income. You owe no federal or California income tax on the money you receive.
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.