Frequently Asked Questions

1. What are the requirements to qualify?

In order to qualify for a reverse mortgage you must own your home and the youngest borrower must be age 62 or older.

2. Do I need good credit and a minimum monthly income?

No, because a Reverse Mortgage in not a conventional loan and you will not be making any monthly payments, you do not have to qualify with any credit score or monthly income.

3. How can I receive the money?

You can receive the proceeds in one lump sum, where the homeowner receives all available funds at the closing of the loan. You can also receive the proceeds in monthly payments for the lifetime of the homeowner, for a specified length of time, in a cash line that can be accessed anytime to withdraw funds, or any combination of the above options.

4. Can I lose my house or be removed from the title?

No, a Reverse Mortgage is secured by a deed of trust or mortgage which serves as security for the loan. The homeowner retains full ownership and control.

5. Will a Reverse mortgage effect my social security or medicare benefits?

A reverse mortgage is a loan and not considered income, so it does not effect your eligibility. However some programs consider any cash in bank accounts as a liquid asset. We recommend you contact an advisor for your benefits.

6. How will a reverse mortgage effect the equity in my home for my heirs?

As the homeowner receives funds through a reverse mortgage, most homes will continue to grow in value. In the event the home value decreases, because a reverse mortgage loan is a non-recourse loan the homeowner will never be responsible to pay back more than the value of the home.

7. What cost/fees are involved with a Reverse Mortgage?

As with a regular mortgage loan there are costs involved such as origination costs, closing costs, appraisal, escrow, and recording fees. All costs/fees can be included into the financing of the loan with no out of pocket expenses. In the process of application you are provided with a good faith estimate itemizing each cost.

8. What if I decide to sell my home?

Once you decide to sell your home, the reverse mortgage would become due and paid for by the sale of the house. All remaining equity is retained by the homeowner.

9. Can I still collect benefits if my spouses passes away?

Yes, as long as you are a legal co-owner of the home you can still continue to collect the benefits.

501 Mission Ave.
Oceanside, CA 92054
Toll-free: 1-800-351-7026
Phone: 760-966-3640
Fax: 760-966-3658