What is a Reverse Mortgage?

A reverse mortgage allows you to refinance your mortgage and never have to make a payment again for as long as you live. If you do not currently have a mortgage, or have enough equity in your home, you are able to take cash out. You can receive a lump sum at closing, get a line of credit, or receive a monthly term payment.

The more equity you have in your home, the more money you can potentially qualify for through a reverse mortgage.

While a reverse mortgage is a loan, it does not come due until a maturity event occurs. An example would be when the final borrower on the loan passes away.

Reveres mortgage are considered “non-recourse” loans meaning you can never owe more than the home is worth. When the maturity even occurs, the home is sold and any remaining equity goes to the home owner’s estate. If more money is owed than the home is worth the deficit is written off (it is insured and paid for by the Federal Housing Administration) and NOT held against any other assets in the estate. If a family member wants to purchase the home they can do so for 95% of the current home value, as indicated by a current appraisal.

Why Get a Reverse Mortgage in Orange County?

Here are a couple of reasons to consider applying for a reverse mortgage now:

Stay in your home and never have to make a payment again.

You get to use the reverse mortgage to finance any purchases you wish and the cash out proceeds are typically tax free, but be sure to consult your CPA or tax adviser.

While there are no restrictions at all on how you spend or save the money you receive, here are a few ideas for what you can do once you have more cash in your budget from a reverse mortgage:

Keep the money in the bank or put it into investments.

Pay for enhancements to your home (for example, you could install solar panels, which would save you even more money over time).

Make home repairs.

Pay for education for your grandchildren.

Go on a vacation.

Put money down on the purchase of a second home.

Fund a startup or another project of your own.

You probably already know exactly how you would use the money from a reverse mortgage based on your own needs and goals. Once your application is approved, there will be nothing holding you back.

OC Reverse Mortgage Qualification Guidelines

How do you know if your application for a reverse mortgage is likely to be approved? Following are the basic guidelines for qualification:

You must be age 62 or higher.

The home that you wish to take the equity from through the reverse mortgage must be your primary residence. Second homes and investment properties do not qualify.

You need to have at least 40% equity in your home to take out a reverse mortgage.

You must be current with property tax, homeowners insurance, and any required HOA payments.

Your income, credit score, tax history and other financial details also may have an impact on whether or not your reverse mortgage application is approved.

Reverse Mortgage

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Maz Rostamian

17:05 18 Oct 24

Brian and Nichole are highly skilled professionals with a proven track record in the mortgage industry. Their expertise and problem-solving abilities have consistently helped us in securing purchase and refinance loan transactions. They are exceptionally responsive, professional, and knowledgeable. We wholeheartedly recommend them for both purchase and refinance loans.

Roxana Amini

19:13 02 Oct 24

There’s a reason Brian and Nichole of Grand Lending have 5-star reviews across the board. I’d give them 100 stars if I could.I reached out to them on a Sunday afternoon to simply inquire about Loan options. I did not expect them to respond immediately. Within 1 hour, they assessed my information and provided a pre-qualification letter.Over the next several months, I made numerous offers and needed revised pre-qual letters. I’m convinced Brian and Nichole do not sleep because no matter what time of day, they delivered. They were committed to supporting me, with no financial incentive, until I found "the one."I ultimately found "the one" and thanks to Grand Lending, I was able to purchase it and pay LESS per month as a homeowner than I did as a renter...while in a fire zone!Not only did Grand Lending lock in an incredible interest rate (with money back), Brian went out of his way to obtain the HOA insurance documents because escrow was stalling. He also helped me get a Homeowner Insurance policy at a rate that I didn't even think was possible. Even my broker said, lenders normally don't go the extra mile like this.Finding Brian and Nichole is one of the best decisions I've made. Thank you both, from the bottom of my heart.Bumpy the rabbit also thanks you for her new yard.

Ghooye Sefid

23:46 04 Sep 24

Nichole and Brian are the absolute best and most professional in the business!They made our first home purchase a breeze. They closed our purchase loan in under 2 weeks with an amazing rate. They are so knowledgeable and answer all of our questions quickly. They made sure the escrew went smoothly and kept all the parties informed throughout the process. They know what they need to do. We 100% recommend them!

Vahid Ghadamyari

03:57 27 May 24

We had an exceptional experience working with Brian and Nichole from Grand Avenue Realty & Lending. From the very beginning, he demonstrated outstanding professionalism and expertise. Brian took the time to thoroughly understand my financial situation and providing clear and comprehensive advice tailored to my needs.The entire process was smooth and efficient, thanks to their excellent communication skills and attention to detail. Brian kept me informed at every step, promptly addressing any questions or concerns we had. He went above and beyond to secure a competitive interest rate and favorable loan terms, which made a significant difference in my home-buying experience.What stood out the most was his dedication to ensuring I felt comfortable and confident throughout the process. I highly recommend Brian and Nichole to anyone looking for a knowledgeable and reliable mortgage broker. Thank you, Brian and Nichole, for making our dream of homeownership a reality!

David Barnes

20:06 01 Aug 23

Brian and Nichole were so great to work with and great communicators throughout the process.

Grand Avenue Realty & Lending is an Equal Housing Lender. As prohibited by federal law, we do not engage in business practices that discriminate on the basis of race, color, religion, national origin, sex, marital status, age, because all or part of your income may be derived from any public assistance program, or because you have, in good faith, exercised any right under the Consumer Credit Protection Act. Disclaimer: Programs subject to change without notice. All borrowers must qualify per program guidelines.

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Reverse Mortgages in Orange County

What is a Reverse Mortgage?

Why Get a Reverse Mortgage in Orange County?

OC Reverse Mortgage Qualification Guidelines

Apply Today for a Reverse Mortgage in Orange County

Reverse Mortgage

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