An Orange County Reverse Mortgage is a special type of FHAhome loan that allows a borrower to draw upon the equity they have built up in their home over the years. With an Orange County Reverse Mortgage, no monthly mortgage payments are made to the mortgagor; instead an equity payment is made to the borrower. Payments made from the Orange County Reverse Mortgage can be made to the borrower in the form of one lump sum, monthly payments, or a line of credit.
Qualifications for an Orange County Reverse Mortgage:
Borrowers must be 62 years of age or older.
Borrowers must own their home or have a low balance on their mortgage that can be paid off at the close of escrow
The property must be used as a primary residence.
Borrower acquiring an Orange County Reverse Mortgage must obtain consumer information from an approved HECM counselor prior to obtaining an Orange County Reverse Mortgage.
Eligible Properties an Orange County Reverse Mortgage:
Single family residences
1-4 unit dwellings (one unit must be used as primary residence)
Manufactured Homes (must meet FHA approval)
Benefit and Highlights of an Orange County Reverse Mortgage:
No minimum income requirement
Borrower cannot be foreclosed on
No monthly payment
Orange County Reverse Mortgages do not need to be paid off until the property is no longer used as the primary residence. In the event of death or sale of the property, the Orange County Reverse Mortgage is paid off from the estate or the proceeds of the sale, and the remaining equity, if any, is distributed to the heirs.
The amount available for an Orange County Reverse Mortgage is determined by: the borrower’s age, current interest rates, and the appraised value of their home or FHA’s mortgage limits for the area, whichever is less.
An Orange County Reverse Mortgage is a great way to supplement retirement income. Funds from an Orange County Reverse Mortgage can be used for home improvements, vacations, unexpected medical expenses, and much more!
This information is not intended to be a substitute for legal, tax or financial advice. Consult with a qualified attorney, accountant or financial advisor for additional legal or tax advice. These materials are not from HUD or FHA and were not approved by HUD or a government agency.
* There are some circumstances that will cause the loan to mature and the balance to become due and payable. The borrower(s) must continue to pay for property taxes and insurance and maintain the property to meet HUD standards or risk default.. Credit is subject to age, minimum income guidelines, credit history, and property qualifications. Program rates, fees, terms and conditions are not available in all states and subject to change.