Reverse Mortgage

Never make mortgage payments on your North County home again.

What is a Reverse Mortgage?
A Reverse Mortgage is a federally regulated program for homeowners, aged 62 and older. It allows the equity in your North County home to pay you rather than you paying for the home.
What is a Government Insured HECM program?
HECM stands for Home Equity Conversion Mortgage. It is a federally insured and guaranteed program. The HECM is a safe way for you to access the equity in your San Diego home without ever making a mortgage payment.
How is this Program “safe” for North County Senior Homeowners?
No matter what happens in the economy, how much money you receive, or how long you live inyour home you will never be required to make a mortgage payment. In addition, no matter what happens to your lender or your home’s value you have guaranteed access to your money.
Who owns the home if I take a Reverse Mortgage? You own your property. However, you pledge the home as collateral.
What happens if, in the future, the Loan exceeds the Value of the Home? Your Reverse Mortgage will continue – thanks to the federal insurance. The line of credit will still be available and monthly disbursements you may have set up, will still be sent to you.
How are Reverse Mortgages different today?
Today’s reverse mortgages are highly regulated by State and Federal laws to make them safe and to protect you. Among others, the following regulations apply: – You retain title of the home. – No equity share is allowed, meaning the lender does not slowly take over your home. – Fees and costs are federally regulated.
How does a Reverse Mortgage compare to a Conventional Mortgage? In a conventional forward mortgage, you make monthly payments to the bank eventually paying off the mortgage over time. With a reverse mortgage you receive cash from your lender, as lump sum upfront, as monthly installments or as a line of credit that grows over time. As long as you live in your home you never have to pay off a single dollar of the loan.
What restrictions apply to the cash I receive from a Reverse Mortgage? It is your money and you can use it the way you want. It’s non-taxable and does not affect Social Security payments. We do recommend that you talk to a competent financial advisor to determine the effect on any other benefits you may be receiving.
When does a Reverse Mortgage become due and what happens then?
When you no longer live in your home or when you pass away, the reverse mortgage becomes due. You or your heirs have two options:
1) Pay off the reverse mortgage including the accrued interest and retain ownership .   2) Give up ownership of the home and receive the difference between the net sales proceeds and the loan balance. You will not be liable for any shortfall if the sales              proceeds do not cover the loan.
What are my obligations under a Reverse Mortgage?
With a Reverse Mortgage you retain title to your San Diego North County home. This means that you also have all your obligations as a home owner. You are responsible for home owner taxes and insurances.
If you are a North County home buyer and are 62 or older, you can use a purchase reverse mortgage to buy your North County retirement home.  There are no income or credit requirements. You can now afford to look at
Ocean Hills Country Club homes, Emerald Lake Village homes, Oceana homes, Rancho Carlsbad homes, or other San Diego North County homes and retire in a home that’s right for you. The table below is an example of what you could expect with an appraised home value of $309,000. Contact Gary Harmon, your San Diego North County Senior Realtor, for different purchase (appraised) values up to $625,000. 

 

purchase reverse mortgage

Answer to questions if you are 62 or older and looking to buy.

  • You do not need to put up the entire purchase amount to buy a new San Diego North County home.
  • You do not need to make any more monthly house payments for the rest of your life.
  • You do not have to settle for less of a Oceanside home or Carlsbad home than the one you really want.
  • You do not need to pay all cash. See the table above for an example of how much you would have to put down.
  • You could use the purchase reverse mortgage to pick up that perfect vacation home. For example, you may be able to take out a reverse mortgage on your primary residence and use the proceeds for the down payment on the second home.
  • Purchase reverse mortgages can be used on most types of San Diego North County homes. Examples are as follows: Single family detached, attached, condos, and even manufactured homes.

Contact me, Gary Harmon, with your questions. I work with HomeServices Lending, the nation’s leading retail originator of reverse mortgages. We’re here for you, and ready to help you realize the benefits of the new purchase reverse mortgage. Again, if you are looking at Ocean Hills Country Club homes, Emerald Lake Village homes, Oceana homes, Rancho Carlsbad homes, or other North County homes, contact Gary Harmon, your Senior North County Realtor.

Purchase Reverse Mortgage

If you are a North County home buyer and are 62 or older, you can use a purchase reverse mortgage to buy your North County retirement home. There are no income or credit requirements. You can now afford to look at Ocean Hills Country Club homes, Emerald Lake Village homes, Oceana homes, Rancho Carlsbad homes, or other San Diego North County homes and retire in a home that’s right for you. The table below is an example of what you could expect with an appraised home value of $309,000. Contact Gary Harmon, your San Diego North County Senior Realtor, for different purchase (appraised) values up to $625,000.

purchase reverse mortgage

If you are a Oceanside home or Carlsbad home buyer, age 62 or older, there is a new way you can purchase that North County property without having to make mortgage payment. That’s righ, make no payments the rest of your life (unless you live past 150). If you are ready to sell your current San Diego North County home and purchase a better retirement home, a purchase reverse mortgage may be just the right thing for you. You could combine the proceeds from the sale of your current North County property or just use available cash with your reverse mortgage proceeds to purchase the new home.

  • You do not need to put up the entire purchase amount to buy a new San Diego North County home.
  • You do not need to make any more monthly house payments for the rest of your life.
  • You do not have to settle for less of a Oceanside home or Carlsbad home than the one you really want.
  • You do not need to pay all cash. See the table above for an example of how much you would have to put down.
  • You could use the purchase reverse mortgage to pick up that perfect vacation home. For example, you may be able to take out a reverse mortgage on your primary residence and use the proceeds for the down payment on the second home.
  • Purchase reverse mortgages can be used on most types of San Diego North County homes. Examples are as follows: Single family detached, attached, condos, and even manufactured homes.

Contact me, Gary Harmon, with your questions. I work with HomeServices Lending, the nation’s leading retail originator of reverse mortgages. We’re here for you, and ready to help you realize the benefits of the new purchase reverse mortgage. Again, if you are looking at Ocean Hills Country Club homes, Emerald Lake Village homes, Oceana homes, Rancho Carlsbad homes, or other North County homes, contact Gary Harmon, your Senior North County Realtor.

Reverse Mortgages

Source of retirement income

You can now buy a home with a purchase reverse mortgage.  You can also use a reverse mortgage as a source of retirement income.  With the recent devaluation of the stock market many older San Diego homeowners will have to find a new way to supplement their retirement income.  For many, waiting until the market goes back up isn’t a workable answer.  For many of San Diego’s elderly who own North County homes, a reverse mortgage may offer a previously unconsidered source of wealth.  The reverse mortgage is a way of borrowing that transforms the equity in you North County home into liquid cash without having to to either move or take monthly payments.  This may just be what you need to help  pay bills through these hard times and to help you to be able to stay in your Ocean Hills Country Club homes or other North County Homes for over 55.

How much can you borrow with a reverse mortgage

Just like the name implies, a reverse mortgage is a loan against the equity in your North County home.  How much you can borrow is a percentage of the San Diego home’s value determined by appraisal and the age of the youngest homeowner.  This loan does not have to be repaid during the lifetime of the North County homeowner unless the homeowner decides to sell or to permanently move out of their San Diego North County home.  After the owner dies, his estate will have a grace period of one year to list and sell the North County real estate and pay the mortgage.  Any remaining equity will stay with the estate. If the estate wishes to keep the San Diego North County home, they can just pay off the reverse mortgage balance.  The estate would not be liable for any deficiency if the North County real estate sells below balance of the reverse mortgage.

San Diego homeowners may be elgible to receive up to $417,000 depending on the equity in their homes.  On some loans the limit may be increased to $625,000 in areas with high housing cost.  To estimate how much you may get for your North County home, use the AARP’s reverse mortgage loan calculator

Must be 62 years old

To be eligible for a HUD reverse mortgage, the Federal Housing Administration (FHA) requires the San Diego North county homeowners to be at least 62 years old.  There are no income or credit requirements to obtaining the reverse mortgage.  If you are married and own the home together, the reverse mortgage is usually based on the age of the younger spouse.  You are eligible even if you are still making payments on your home, but you must have at least 50% or more equity in your San Diego County home.  When the reverse mortgage is funded any remaining balance on their previous loan is immediately paid off.  Most types of San Diego North County real estate can be eligible for a reverse mortgage.  Even mobile North County homes built in the last 30 years where the homeowner owns the land can be considered.

Ways to receive funds from a reverse mortgage

The North County homeowner can receive funds from the reverse mortgage loan in several ways:  lump sum, equal monthly payments as long as you live in the home, or as a line of credit until the credit line is exhausted. You can also get money in any combination of the three.  The most popular choice of San Diego homeowners is the line of equity which lets you borrow how much and  when you need the money.  As long as at least one North County homeowner lives in the home you do not have to repay the loan.  Also, there are no out of pocket cost to obtaining the reverse mortgage.  Income from reverse mortages is non-taxable and does not affect your Medicare, Social Security, or pensions.

Downsides of reverse mortgages

Reverse mortgages are not without their downsides.  There are cost and risk involved.  As interest is added to the initial mortgage amount, a substantial portion of the equity may disappear in your San Diego home. The initial cost to obtain a reverse mortgage can also be high.  These include higher insurance premiums, title insurance cost, and the loan origination fee.  Cost can be financed by the loan itself, but that would reduce the money available to you.  Reverse mortgage payments also may affect your eligibility for some government benefits, including MediCal.  Generally, these payments are not counted as income as long as they are spent within the same month that they are received.  Nevertheless, the benefits to our aging senior North County homeowners may far out weigh the downside and provide some relief in this economic climate.   For more information on reverse mortgages contact Gary Harmon’s lending partner  Joyce Nathan, Home Services Lending.
This website does not give investing or tax advice, so be sure and discuss a reverse mortgage with your CPA.

Purchase Reverse Mortgage Examples – Oceanside Homes for Sale

Two examples of how a purchase reverse mortgage (HECM) can work for you when buying Oceanside homes for sale.

Purchase reverse mortgage(HEMC)  example 1 – Oceanside clients ages 65 & 64 who are just retiring want to downsize to a Ocean Hills Country Club single story home with all the amenities of their existing home and use the proceeds from the sale to pay cash.  Their goal is to have no future payments on their Ocean Hills Country Club home. 

I estimate that the net proceeds from the sale of their current San Diego North County home to only be around $200,000.
 
I suggested that my Ocean Hills buyer take a look at the Reverse Mortgage Purchase offered by HomeServices Lending, an affiliate of Wells Fargo bank.      
 
The clients really want a Ocean Hills home that is a great deal at $450k  (3 yrs ago $600k).  We all sit down and run the numbers on this Ocean Hills home using a Reverse Mortgage Purchase.   Here is what we came up with:

Purchase Price                         $450,000
Reverse Mortgage Funds        $262,800                         

Cash Required to Close           $187,200

The clients takes $187,200 of the $200,000 from the sale of their old home combined with the
$262,000 reverse mortgage proceeds from their HomeServices Lending loan through Wells Fargo to purchase the new home for $450,000.  And they will be achieving their goal of  never having any monthly mortgage payments as long as they live in the home! 

To sum up, many Ocean Hills Country Club home buyers pay cash.  In this case that would have been $450,000.  In our case they invested only $187,200 of their money and have no payments for life.  Several years ago, the selling price of this home would have been over $600,000 and no reverse purchase mortages were available.  Good deals are available now.

Purchase reverse mortgage (HEMC) example 2 – Marge and John, both 74, want to buy a one story manufactured home in Emereal Lake Village in Oceanside, CA.   They are currently selling their Carlsbad, CA two story home.  They feel a single story home will be better suited health wise for the rest of their life. 

Marge and John look at several homes in Emerald Lake Village for around $300,000.  All of Emerald Lake Village is one story detached homes with reasonable homeowners fees.  Marge and John meet with a reverse purchase mortgage specialist at Home Services Lending. 

They make an offer and get it accepted at $300,000. 

Purchase price of  $300,000,   reverse mortgage proceeds of $177,213,  leaves an investment of $122,787 needed.  Marge and John have no more payments for live.  

To find out more about purchase reverse mortgages read my other blogs:

Reverse mortgages for San Diego home purchases

Reverse Mortgages – Frequently Ask Questions

Reverse Mortgage – Purchase Ocean Hills

Purchase Your San Diego Home with a Reverse Mortgage.

Also, contact Gary Harmon, and I will put you in touch with my reverse purchase mortgage specialist at HomeServices Lending.

* Ever effort to make these examples correct have been take, but rates constantly change.  The amount that you have to put down on a reverse purchase mortgage changes with your age.  See my table for purchase reverse mortgage   for a general idea. 

 

 

 

Reverse Mortgages – Frequently Ask Questions

Senior purchasers for North County for over 55 should understand how a reverse purchase mortgage can be used to buy their retirment home.  Reverse purchase mortgages can be used anywhere to buy San Diego North County homes, but work especially well in Ocean Hills Country Club, Emerald Lake Village, Oceana, Oaks North, and Seven Oaks. A purchase reverse mortgage will let you put down a fraction of the purchase price and have no more payments for life.  This frees up money you may have used for later need.

Below are some of the fequently ask questions reguarding using a reverse purchase mortgage for your home.

What sources are allowed for the cash required to close?

  •  The sale of the departure home you just sold
  •  The sale of the senior homebuyer’s other assets
  •  A homebuyer’s savings accounts
  • Gift money from parties not involved in the transaction

What sources cannot be used for the cash required to close?!

  •  Seller financing of any kind or seller concessions
  • Cash withdrawn from your credit cards
  • Bridge loans of any type
  • Any subordinate financing

What property types are eligible? 

  • Single family San Diego homes. Can be one story, two story, attached or detached
  • HUD-approved condos
  • Planned unit developments (PUDs).  Many San Diego homes are Planned Unit Developments.
  • Two- to four-unit San Diego properties (one must be owner-occupied)
  • Manufactured North County homes (like those in Emerald Lake Village) built after June /3, /754

What requirements must the new North County home meet?

  • Must become the buyer’s primary residence

Which San Diego North County home is the purchase reverse mortgage for?

  • Must be occupied by the senior buyer within 4 days from closing date
  • Construction must be complete, the property habitable, and a certificate of occupancy or its equivalent issued prior to the loan application.
  • The reverse mortgage is placed on the new San Diego home. If the cash required to close comes from the sale of the departure home, that sale is a transaction separate from the HECM for Purchase transaction.

You can make this opportunity yours.  Work with HomeServices Lending, affiliated with Wells Fargo Home Mortgage, the nation’s leading retail originator of reverse mortgages. Need more information on how to make a reverse mortgage work for you, contact Gary Harmon, your Senior North County Realtor.

Reverse mortgages for San Diego home purchases

Retire in a home that’s right for you

Now, if you’re a San Diego North County home buyer age 62 or older, there’s a program that can help you purchase your ideal
retirement home. The following information will help you understand the benefits and details of the reverse
mortgage for purchase program.

What is the home equity reverse mortgage (HECM) for purchase?

  • An FHA-insured reverse mortgage
  • Enables senior homebuyers, age 62 or older, to purchase a new primary San Diego residence and obtain a reverse mortgage in simultaneous transactions with no monthly mortgage payments
  • Allows buyers to combine reverse mortgage proceeds with a down payment from their current home sale or other assets, to purchase a new North County home

How can this program help you?

  •  Purchase a new North County home without taking on a new monthly mortgage payment
  • Purchase a primary San Diego residence, maybe a one story, suitable for your current needs
  • Purchase a Oceanside home in a senior housing community like Ocean Hills Country Club
  • Move into a new home that’s easily accessible with modern amenities
  • Downsize to a smaller, easier-to-maintain one level home
  • Relocate closer to friends and family members

To recap, you can use a purchase reverse mortgage to buy your North County over 55 dream home.  There are no credit or income requirements. You can now afford to look at Ocean Hills Country Club homes, Emerald Lake Village homes, Oceana homes, Rancho Carlsbad homes, or other San Diego North County homes and retire in a home that’s right for you.  Read more information at Reverse Mortgage – Purchase Ocean Hills.

To look at Ocean Hills Country Club homes or other San Diego real estate, contact Gary Harmon, your Senior North County Realtor. 

Information in this blog was furnished by Wells Fargo Bank and HomeServices Lending, one of Gary’s Winning Team.

Purchase Your San Diego Home with a Reverse Mortgage

Never make mortgage payments again on your San Diego North County home.

Using a purchase reverse mortgage you can buy your North County over 55 dream home.  There are no credit or income requirements.  You can now afford to look at Ocean Hills Country Club homes, Emerald Lake Village homes, Oceana homes, Rancho Carlsbad homes, or other San Diego North County homes and retire in a home that’s right for you.  Use the table below to see what you could expect with an appraised home value of $309,000.   Contact Gary Harmon, your San Diego North County Senior Realtor, for different purchase (appraised) values up to $625,000

purchase reverse mortgageIf you are a San Diego North County home buyer, age 62 or older, there is a new way you can purchase that North County property without taking on a new monthly mortgage payment.  That’s righ, make no payments the rest of your life (unless you live past 150).  If you are ready to sell your current San Diego North County home and purchase a better retirement home, a purchase reverse mortgage may be just the right thing for you.  You could combine the proceeds from the sale of your current North County property  or just use available cash with your reverse mortgage proceeds to purchase the new home. 

Answer to questions if you are 62 or older and looking to buy.

  • With a purchase reverse mortgage you do not need to put up the entire purchase amount to buy a new San Diego North County home over 55 home or other home.
  • You do not need to make any more monthly house payments for the rest of your life.
  • You do not have to settle for less of a North County home than the one you really want.   
  • You do not need to pay all cash.  See the table above for an example of how much you would have to put down.
  • You could use the purchase reverse mortgage to pick up that perfect vacation home.  For example, you may be able to take out a reverse mortgage on your primary residence and use the proceeds for the down payment on the second home.
  • Purchase reverse mortgages can be used on most  types of San Diego North County homes. Single family detached, attached, condos, and even manufactured homes are just some examples.

I would like to invite you to contact me, Gary Harmon, with your questions.  I work with HomeServices Lending, the nation’s leading retail originator of reverse mortgages.  We’re here for you, and ready to help you realize the benefits of the new purchase reverse mortgage.  Again, if you are looking at Ocean Hills Country Club homes, Emerald Lake Village homes, Oceana homes, Rancho Carlsbad homes, or other North County homes, contact Gary Harmon, your Senior North County Realtor.

Reverse Purchase Mortgage – Ocean Hills Homes

If you are ready to sell your current home and purchase a more suitable retirement home, a reverse mortgage may be able to help you.  The reverse purchase mortgage  program is available for San Diego North County buyers who are at least 62 or older.  With a reverse purchase mortgage you make no mortgage payments for the rest of your life.  There are no income or credit requirements with a reverse mortgage.  Let’s take a look at an example of how it works.

Example of Purchase Reverse Mortgage

Buyers plan to move to San Diego North County to retire and downsize.  They now want a single level home with lots of amenities  and Ocean Hills is the perfect place.  They want to use the sales proceeds from the home they just sold and want to buy a home and not have any more mortgage payments for the rest of their lives.

This will be tough to do as  I estimate the proceeds from their sale to only be around $200,000.  I contact Ken Keranen of HomeServices Lending to see what type of program is available.
 
My clients have found a home in Ocean Hills Country Club they really like for $450,000 (3 yrs ago $600k).  We all sit down and run the numbers on this home using a Reverse Mortgage Purchase.   Here is what we came up with:
Purchase Price                           $450,000
Reverse Mortgage Funds        $262,800                        
Cash Required to Close           $187,200
 
My clients takes $187,200 of the $200,000 from the sale of their old home combined with the $262,000 reverse mortgage proceeds from Wells Fargo to purchase the new home for $450,000 and will never have any monthly mortgage payments as long as they live in the home! 

Reverse Mortgage Example for a $309,000 Purchase, Different Age Buyers

purchase reverse mortgage

For more information about purchase reverse mortgages and how you can use them to buy your Ocean Hills Country Club retirement home, contact Gary Harmon, your Ocean Hills Realtor.  Other reverse mortgage articles available on this blog:  Purchase Reverse Mortgage Examples – Oceanside Homes for SaleReverse Mortgages – Frequently Ask Questions, and Reverse mortgages for San Diego home purchases.

Carlsbad Homes – Purchase Reverse Mortage

Maybe you have retired and no longer have an income.  Maybe have lost your job.  Perhaps your credit score is a little too low for a regular loan.  A purchase reverse mortage could be a way for you to get a loan to buy that Carlsbad home.   Below are some of the benefits of a purchase reverse moretgage.

FHA Purchase Reverse Mortgage Benefits 

     -No income required                    
     -No minimum credit score
     -No Income to Debt ratio             
     -Down payment can be a Gift
     -No Mortgage payment for life       
     -No minimum or maximum sales price
     -Can own other properties 
     

You need to be 62 years old to qualify for a purchase reverse mortgage.  A Reverse Mortgage will cover as much as 77% of the price of the home!  A Purchase Reverse Mortgage can eliminate the need for a Carlsbad homebuyer to make a house payment. All that is needed is the down payment and closing costs the Reverse Mortgage will cover the remaining balance!

The age of the youngest buyer and the value of the Carlsbad home are what determine how much money is needed to close.

Use the table below to see what you could expect with an appraised home value of $309,000.   Contact Gary Harmon, your San Diego North County Senior Realtor, for different purchase (appraised) values up to $625,000. have included the Down Payment and estimated closing costs.

purchase reverse mortgage

See Gary’s other articles relating to purchase reverse mortgages:

Reverse Mortgages – Frequently Ask Questions

Reverse Purchase Mortgage – Ocean Hills Homes

Purchase Reverse Mortgage Examples – Oceanside Homes for Sale

Reverse mortgages for San Diego home purchases

Reverse Mortgage – Purchase Ocean Hills

Now is the Time to Buy Ocean Hills Real Estate

Purchase Your San Diego Home with a Reverse Mortgage

Home Services Lending, one of Gary Harmon’s Winning Team, can customize a reverse mortgage to fit your situation.  Contact Gary Harmon, Prudential California Realty, for your best move ever!

Best Way to Finance

What is the best way to finance your San Diego North County home.  Best answer, it depends on each persons goals and financial situation.  However, in the current market, a FHA loan seems to be the easiest loan to get in today’s market place.

FHA only requires a 3.5% down-payment to a maximum loan amount of $697,500. That would cover most of the sales prices in San Diego North County.  Unlike conventional financing, FHA is not as sensitive to credit scoring. This can translate into much lower interest rates and payments. Despite the fact that FHA has the upfront Mortgage Insurance Premium to contend with, the impact to payment is minimal since it can be financed. Did you know that the qualifying standards are more flexible than conventional financing, that 100% of the down-payment can be a gift from family or a close friend, that the strength of qualifying can be from a non-occupying co-borrower and that there are no mandatory seller fees?

If you would like more information about FHA loans, Reverse Mortgages, or any other type of loan, contact Gary Harmon and he will put you intouch with a lending expert.

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