Common myths and misunderstandings about FHA Reverse Mortgages

Your home's equity is only valuable when you use it for your benefit, and now more than any other time, Senior Citizens own homes with large amounts of equity. For clarification purposes: Equity is the amount of the value of your house minus any liens or loans attached to the property. 

Myth: The bank owns your home.

Fact: You retain ownership of your home with a reverse mortgage, just as you would with a traditional mortgage.

Myth: You can owe more than your home is worth.

Fact: With a reverse mortgage, you can only owe the value of your home when the loan is repaid.

Myth: You can be forced to move out of your home.

Fact: You can continue to live in your home as long as you meet the loan obligations, such as paying property taxes and homeowner's insurance.

Myth: Reverse mortgages are only for people in financial trouble.

Fact: Reverse mortgages can be a valuable financial tool for retirees looking to supplement their income, pay for healthcare expenses, or make home renovations.

Myth: Reverse mortgages are a last resort.

Fact: Reverse mortgages can be part of a comprehensive retirement plan and provide financial flexibility in various situations.

Email me if you have questions or want a free consultation on what you qualify for with an FHA Reverse Mortgage. 

Cheers, 

Noah S Burford

noah@lola24.com

How an FHA Reverse Mortgage purchase loan changed one woman's life!

This woman is 69 years old and lived in a condo in Anaheim. A few years ago, she co-signed a loan for her daughter to help buy her first home in Nevada. This year her daughter lost the house in foreclosure and moved in with my client. As a result of the foreclosure, my client's credit was ruined, and now she was living in a small condo with her daughter and grandchildren. They needed a bigger home. She had a problem. She is retired, and her credit is poor. On top of that, she only had $270,000 of equity in her condo. Good luck trying to buy a bigger home in Orange County with that!

But then she heard about FHA reverse mortgage purchase loans! These are particular loans that are designed for people in her situation. With this type of loan, she was able to buy a bigger home and get cash out to help with living expenses. And the best part is that she didn't have to make any monthly payments on the loan!

This loan changed her life. She now has a beautiful home that she can enjoy for the rest of her life. And she doesn't have to worry about making monthly mortgage payments. Please contact me if you or someone you know is in a similar situation. I would be happy to help you get the information you need to make an informed decision about whether or not an FHA reverse mortgage purchase loan is right for you.

Cheers,

Call or text 949-278-9244 or submit an inquiry. 

Noah Burford

NMLS#360892

noah@lola24.com

www.mortgagelola.com

How Does an FHA Reverse Mortgage work?

How does a reverse mortgage work?

An FHA reverse mortgage has very different moving parts compared to a regular mortgage. With a reverse mortgage:

Your age is the most important factor in how much you qualify for. The minimum age may be 62 for a reverse mortgage, but older borrowers have more reverse mortgage borrowing power. There’s a catch for married couples: Lenders consider the youngest borrower’s age for the maximum loan amount.

You must have at least 50% equity in most cases. Lenders want to ensure you don’t end up owing more than your home is worth, so they set a much higher initial equity requirement than regular mortgage programs. A home appraisal is always required as part of the reverse mortgage process to get an unbiased opinion of your home’s value from a licensed real estate appraiser.

You don’t have to meet any debt-to-income (DTI) ratio requirements. No mortgage payment means no DTI ratio requirements, which are a major factor in qualifying for a regular mortgage. However, you will have to prove you have the resources to pay ongoing homeownership costs like homeowners insurance, property taxes, and maintenance costs.

Your interest rate will have an impact on how much you qualify for. Because interest charges are added to your loan every month, the lower the interest rate, the more you’ll be able to borrow.

You have more choices for how you can convert your equity into cash. Instead of making payments each month, you can choose from one or a combination of the following six ways to tap your equity:

1. Lump sum. This option involves a single large payment made to you after your loan closes, allowing you to pad your cash reserves to use as needed. An added bonus of this choice: Your interest rate will be fixed.
2. Tenure. You can choose regular monthly payments for as long as you or a co-borrower live in the home as your primary residence.
3. Term. If you need a few years’ worth of payments to cover a large expense, you can elect to receive monthly payments for a fixed number of years. After that time period ends, the loan will need to be repaid.
4. Line of credit. This is similar to a home equity line of credit (HELOC) in that you’ll have an ongoing source of cash as extra income; this option lets you choose a set number of months you’ll receive regular monthly payments. Line of credit. If you prefer an extra cushion to cover unexpected expenses as you age, the line of credit option may be a good fit. It works similar to a credit card or home equity line of credit (HELOC), giving you access to cash as needed up to the available balance.
5. Modified tenure. Choose this option if you want to set up a line of credit in addition to receiving a monthly payment amount for as long as you and a spouse or co-borrower live in the home.
6. Modified term. You can add a line of credit to a schedule of monthly payments you receive for a set time you choose.

You’ll be required to meet with a housing counselor. To ensure you fully understand all the pros and cons of a reverse mortgage, the U.S. Department of Housing and Urban Development (HUD) requires counseling from a HUD-approved counselor before applying.

Cheers,

Noah Burford

NMLS#360982

Call or Text: 949-278-9244

email: noah@lola24.com

www.mortgagelola.com    

Tapping Into Home Equity with a Reverse Mortgage, it's a great tool for Senior Citizens.

If you're a homeowner aged 62 or older looking for a way to supplement your retirement income, you may have considered taking out a reverse mortgage. A reverse mortgage lets you borrow against the equity in your home and use it to pay for things like home improvements, medical expenses, or even everyday living expenses.

Before you apply for a reverse mortgage, though, there are a few things you'll want to consider. In this blog post, we'll go over some things you should consider before taking out a reverse mortgage. By the end, you'll have a better idea of whether or not a reverse mortgage is right for you.

What is a Reverse Mortgage?

A reverse mortgage is a loan that allows you to access the equity in your home. The loan is backed by your home equity and doesn't need to be repaid until you sell your home or move out of it permanently. 

Reverse mortgages can be a great way to supplement your retirement income, but they're not without risks. So before taking out a reverse mortgage, it's essential to understand how they work and their potential drawbacks. 

How Does a Reverse Mortgage Work? 

A reverse mortgage allows you to borrow against the equity in your home. The loan doesn't need to be repaid until you permanently sell or move out of your home. This means that the interest on the loan will add up over time, and the longer you stay in your home, the more debt you'll accrue. 

It's important to note that if you take out a reverse mortgage and then sell your home, you won't be able to keep any of the proceeds from the sale. Instead, the total sale price will go towards repaying the loan, with any remaining balance being forgiven. 

Additionally, if you move out of your home permanently (for example, if you go into assisted living), the loan will need to be repaid within 12 months. Failure to repay the loan could result in foreclosure. 

What Are the Drawbacks of Taking Out a Reverse Mortgage? 

As we mentioned, one of the most significant drawbacks of taking out a reverse mortgage is that the debt will continue to accrue over time. Additionally, if you die before the loan is repaid, your heirs will be responsible for repaying the debt in total—which could put them in a difficult financial position. 

Before taking out a reverse mortgage, you must speak with an experienced financial advisor who can help you understand all potential risks and drawbacks. They can also help ensure that a reverse mortgage is right for your unique financial circumstances. 

A reverse mortgage can be a great way to supplement your retirement income—but it's not suitable for everyone. Before taking out a reverse mortgage, it's essential to understand how they work and their potential drawbacks. By understanding the positives and negatives of reverse mortgages, you can make an informed decision about whether or not one is right for you.

CHEERS, 

Noah S Burford

noah@lola24.com

949-278-9244 text or call for a free consultation

NMLS#360982

FHA Reverse Mortgage Expert for over 20 years.

A great client testimonial on the help provided by a Reverse Mortgage.

 I have been helping Senior Citizens navigate how to use their equity with a reverse mortgage for almost 2 decades. I love getting emails like this from one of my clients whom I have helped multiple times with multiple reverse mortgages. Here it is in its unedited entirety. 

Dear Noah!

A long (long!) overdue Thank You for saving us in the nick of time. Realizing it's been right at a whole year since we started that tumultuous journey. Your help and patience were invaluable - I don't think too many agents would have stayed with it the way you did. It was exhausting and utterly frustrating to us - I'm sure it was to you, too. You helped us through all the nit-picking and delays; honestly, without your help, we would probably have given up!

They say money can't buy you happiness, but it sure affects your stress levels, and with less stress, you're more likely to be "happy," right? It's been a stressful year, but we're now in a much more tenable position - mainly because of your help securing the mortgage, which gave us a solid foundation, relief if you will. Proceeds were firmly in the bank by January when the veterinary bills started to escalate, first for Merlin, then a few months later for Molly. Not having to charge those expenses was a godsend - I'd already been juggling the account to minimize withdrawals from the IRA.

Overall, life is much easier without the constant juggling of bills, and I've been able to do the shopping comfortably.

Looking at the "current administration's" economy, I realize just how lucky we were to have you in our corner when we did - so, again, THANK YOU!

Most sincerely, and in appreciation.

CK.

You can email me at noah@lola24.com or use my cell phone to text or call if you would like me to guide you through how to accomplish your goals with a reverse mortgage or traditional loan. Also, visit our website at www.mortgagelola.com and click on the Reverse Mortgage tab. 

Cheers, 

Noah S Burford

NMLS#360982

Inflation is ravaging our Senior Citizen community, but there is a solution. | FHA Reverse Mortgage

How can a reverse mortgage help fight the rising cost of living?

During inflationary times, real estate values typically rise, which presents an opportunity for Senior Citizens to access their equity without the obligation of mortgage payment and still own their homes. 

The 56 million residents age 65 and up are being hit especially hard, many who live off fixed incomes with limited savings to cover monthly costs for prolonged periods when prices go unpredictable, or they're not working enough hours at jobs that pay well enough just like younger adults do but suffer from different circumstances such as race which leads them having fewer resources available than others would if it weren't so divided by classism here in America today.

-Rising healthcare premiums continue to cost more yearly while wages remain stagnant because employers want cheaper options. 

The recent increase in food and fuel prices exacerbates an already existing problem for older Americans. Higher prices are weighing heavily on those who can least afford them while simultaneously creating new challenges that this population also faces during times when they're most vulnerable due to novel coronavirus pandemics like we saw last year with SARS or H1N1 viruses making headlines around America every day until their conclusion streamlining through bioterrorism attacks which had fewer side effects than more traditional plagues but still resulted in millions giving up regular incomes just so retirees would be able to survive comfortably into old age without being financial stresses.

If you have parents who are struggling over the age of 62 and have equity in their homes, it is a worthy investment of time to find out how a Reverse Mortgage can help. 

Contact Noah Burford at 949-278-9244 or call or text. Email is noah@lola24.com. FHA Reverse Mortgages are a fantastic tool and a safe choice for Senior Citizens and their heirs. 

Cheers, 

Noah S Burford

Reverse Mortgage Expert. 

NMLS#360982

25 Years of Experience in Loans and Reverse Mortgages

Reverse Mortgages are an excellent tool for Senior Citizens, especially now. | FHA Reverse Mortgage

Learn about how reverse mortgages work and the benefits they offer homeowners over 62 years old.

As you get older, your options for using your home equity become more limited. A reverse mortgage could be a great solution, providing much-needed cash while still allowing you to stay in your home and own your home like any other mortgage. FHA Reverse mortgages are a safe and effective tool to navigate times like these. 

A reverse mortgage is a loan that allows senior citizens to borrow against the equity in their homes. The loan doesn't have to be repaid until the borrower dies, moves out of the house, or sells it.

This makes reverse mortgages an attractive option for seniors who need extra cash but don't want to move out of their homes. The loan can be used for any purpose, such as paying off debts, making home improvements, or covering everyday expenses. 

Reverse mortgages have some essential benefits, including:

- No monthly payments are required, so you can stay in your home even if you can't make regular mortgage payments.

- The loan is tax-free, so you don't have to worry about paying taxes on the money you borrow.

- You won't owe more than the value of your home, even if the loan amount exceeds the value of your home.

A reverse mortgage could be a good option if you're a senior citizen looking for a way to stay in your home and get some extra cash. Get a free consultation to find out what an outstanding loan this is and a great financial tool for Senior Citizens and their heirs. 

Cheers, 

Noah S Burford

Lola24.com

949*278*9244

noah@lola24.com