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Reverse Mortgages
Convert Home Equity Into Cash
A reverse mortgage allows seniors aged 62 and older to convert a portion of their home equity into cash without selling their home or making monthly mortgage payments. At SRK CAPITAL, we specialize in helping seniors navigate the reverse mortgage process with transparency and care, providing personalized guidance every step of the way.
62+
Age Requirement
No
Monthly Payments
Stay
In Your Home
Expert Guidance
Our experienced team provides personalized support throughout the entire reverse mortgage process, ensuring you understand all options and make informed decisions.
Transparent Process
We believe in complete transparency with no hidden fees or surprises. You'll understand every aspect of your reverse mortgage before moving forward.
How Reverse Mortgages Work
Understanding the reverse mortgage process helps you make informed decisions about accessing your home equity.
Step 1
Qualification Assessment
We evaluate your age, home ownership, and financial situation to determine your eligibility for a reverse mortgage.
Step 2
Loan Amount Calculation
Based on your home's value, age, and current interest rates, we calculate how much you can receive.
Step 3
Counseling & Approval
Complete required HUD counseling, finalize loan terms, and receive approval for your reverse mortgage.
Step 4
Access Your Funds
Choose how to receive your funds: lump sum, monthly payments, line of credit, or combination.
No Monthly Payments Required
With a reverse mortgage, you don't make monthly mortgage payments. The loan is repaid when you sell the home, move out permanently, or pass away.
Types of Reverse Mortgages
There are three main types of reverse mortgages, each designed for different situations and financial needs.
Home Equity Conversion Mortgage (HECM)
The most common type of reverse mortgage, insured by the Federal Housing Administration (FHA) and available through FHA-approved lenders.
Federally insured by FHA
Can be used on most types of homes
Flexible payout options
Non-recourse loan protection
Proprietary Reverse Mortgages
Private loans offered by mortgage companies, typically for higher-value homes that exceed HECM lending limits.
For homes above HECM limits
May offer higher loan amounts
Private company backing
Fewer government restrictions
Single-Purpose Reverse Mortgages
The least expensive option, offered by some state and local government agencies and nonprofit organizations for specific purposes.
Lowest cost option
Must be used for specific purpose
Limited availability
Income restrictions may apply
Most Popular Choice
HECM loans account for nearly all reverse mortgages due to their federal insurance protection and flexible terms. Our team will help you determine which option best fits your situation.
Key Benefits
Reverse mortgages offer several advantages for seniors looking to access their home equity while maintaining homeownership.
No Monthly Mortgage Payments
Eliminate monthly mortgage payments and use that money for other expenses. The loan is repaid when you no longer live in the home.
Remain in Your Home
Continue living in your home as long as you maintain the property and meet loan obligations like property taxes and insurance.
Non-Recourse Protection
You or your heirs will never owe more than the home's value when the loan becomes due, even if the loan balance exceeds the home's worth.
Flexible Payment Options
Receive funds as a lump sum, monthly payments, line of credit, or combination. You can change payment options during the loan term.
Tax-Free Proceeds
Reverse mortgage proceeds are generally not considered taxable income, allowing you to keep more of the money you receive.
Use Funds for Any Purpose
There are no restrictions on how you use reverse mortgage proceeds - pay off debts, fund healthcare, home improvements, or daily living expenses.
Important Considerations
While reverse mortgages offer many benefits, it's important to understand the potential drawbacks and considerations before proceeding.
Reduces Home Equity
As you receive payments, your home equity decreases and loan balance increases over time. This reduces the inheritance you can leave to heirs.
Ongoing Costs and Fees
You're responsible for property taxes, homeowners insurance, HOA fees, and home maintenance. High upfront costs include origination fees and mortgage insurance.
Interest Accrues Over Time
Interest compounds on the loan balance over time, meaning you owe more as years pass. Current interest rates affect the total cost.
Complex Loan Terms
Reverse mortgages have complex terms and conditions. It's crucial to understand all aspects before signing, including repayment triggers.
Impact on Government Benefits
Large lump sum payments might affect eligibility for need-based government programs like Medicaid or Supplemental Security Income.
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Professional Guidance is Essential
Given the complexity and long-term implications of reverse mortgages, it's crucial to work with experienced professionals and complete required counseling to ensure this option aligns with your financial goals.
Eligibility Requirements
To qualify for a reverse mortgage, you must meet specific age, property, and financial requirements established by federal regulations.
Age Requirement
All borrowers and spouses living in the home must be at least 62 years old. The younger spouse's age is used to calculate loan terms.
Minimum age of 62 for all borrowers
Spouse must also meet age requirement
Age affects loan amount calculation
Primary Residence
The home must be your primary residence where you live for the majority of each year. Vacation homes and investment properties don't qualify.
Must be primary residence
Live there majority of the year
Single-family homes qualify
Some condos and manufactured homes eligible
Financial Assessment
Lenders evaluate your ability to pay property taxes, insurance, and maintenance costs. You may need to set aside funds in an escrow account.
Credit and income review
Property tax and insurance capability
May require escrow account
Residual income requirements
HUD Counseling
Complete mandatory counseling with a HUD-approved housing counseling agency to ensure you understand the loan terms and alternatives.
Required HUD counseling session
Learn about loan terms and costs
Explore alternative options
Receive counseling certificate
Ready to Learn More?
Our reverse mortgage specialists can help you understand if you qualify and explore your options.
Get Started TodayFrequently Asked Questions
Get answers to common questions about reverse mortgages and how they work.
Have More Questions?
Our experienced reverse mortgage specialists are here to answer your questions and help you understand your options.
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Reverse Mortgages in Southern California
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Financial Disclosure
The information provided on this page is for educational purposes only and does not constitute financial, legal, or tax advice. Mortgage rates and terms are subject to change and may vary based on your individual financial situation. Please consult with a licensed mortgage professional at SRK CAPITAL for personalized guidance.
Explore Other Loan Options
Not sure if Reverse Mortgage is right for you? Compare with these alternatives.
HELOC
Revolving credit line secured by your home equity
- Revolving credit
- Draw as needed
- Interest-only option
Home Equity Loan
Lump-sum loan secured by your home equity
- Fixed rate
- Lump-sum payout
- Predictable payments