An Orange County Reverse Mortgage is a special type of FHA home 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)
- Condos
- Townhomes
- 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!
