A reverse mortgage is a type of home loan that allows you to access some of the equity in your house and convert it to usable money. One of the best features of a reverse mortgage is that you don't have to make a payment for as long as you live or for as long as you reside in your house.
With that said, you do still own your house, so you will have to make sure you continue to pay your homeowner's insurance and property taxes.
The answer to this depends on the state you live in and the program you are looking at or eligible for. There are two types of reverse mortgages as of 2022.
1. There is the FHA insured reverse mortgage. For this program, you have to be aged 62 or older to qualify. If you are married, the amount you can borrow is based on the youngest spouse.
2. There is also a jumbo reverse mortgage. For this program, you have to be aged 55 or older to qualify. However, this program is not available in all states AND some states have slightly different age requirements.
This is a good question. The amount you can borrow depends on your age and the program.
1. For the FHA program, you can borrow anywhere from 50% of your home's value to 74% of your homes value. At age 62 you can borrow about 50% while at age 90 plus you can borrow about 74% of your houses value. Keep in mind that this can vary depending on interest rates too.
2. For the jumbo or proprietary reverse mortgage, you can borrow anywhere from 40% of your homes value at age 55 and as much as 62% of your homes value at age 88 plus.
This is an extremely basic overview of reverse mortgage. Below are a few links to more in depth info about reverse mortgage loans:
Contact LifeSource Mortgage, NMLS# 321759, CA BRE #01869699 at (949) 492-2252 x704 or Info@LifeSourceMortgage.com
The percentage of the appraisal you can borrow at age 62 is roughly (can vary depending on the market) 50% of your home's value. This increases just a little bit with each passing year until it caps out at about 74% of the appraised value somewhere near 90 years old.
Further, the maximum appraised value that FHA will consider in 2022 is $970,800 (also known as the HECM max claim amount). Hence, if you do the math $970,800 x 52% = $504,816) the max loan amount for a 62 year old with a home worth $970,800 or more is $504,816. On the other side of the spectrum, a 90 year old can borrow about 74% of their home's value. Hence, they can borrow as much as $718,392 if their home is worth $970,800.
For the jumbo reverse mortgage program, the maximum loan amount in 2022 is $4,000,000. However, some investors or lenders will grant exceptions to exceed that loan amount and potentially go as high as $6,000,000. Remember, the percentage of your home value that you can borrow for a jumbo reverse mortgage is different than the FHA reverse mortgage. You can click the link / blue button below that says "Jumbo Reverse Mortgage" for more in depth information.
Jumbo Reverse MortgageMore Reverse Mortgage InfoFree Reverse Mortgage Info KitReverse Mortgage at Age 55California Reverse Mortgagehttps://reverse-mortgage-info.webflow.io Is not a lender, bank, or mortgage broker, nor is it affiliated with HUD or FHA. Reverse Mortgage Loan Advisors is simply a website designed to offer information about the FHA insured reverse mortgage program. However, the owner of the site is licensed as a reverse mortgage specialist in several states. Anyone that inquires and requests more information may be contacted by the owner of this site. If the owner of this site is not licensed to conduct business in the state you reside, one of our affiliates will contact you instead.
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