The Jumbo Reverse Mortgage program is back for California home owners. Only a few years ago it was possible for seniors in some of the more expensive parts of California to take advantage of the equity in their home with a Jumbo Reverse mortgage. But along with the mortgage meltdown in 2007 came the disappearance of the true Jumbo Reverse Mortgage.
Reverse Mortgage for Homes Valued Between $500,000 and $6,000,000
Homeowners in areas such as Newport Beach, Laguna Beach, Palos Verdes and other coastal areas have not been able to leverage their home equity due to the relatively low FHA Reverse Mortgage Loan Limits. This new Reverse Mortgage product is available to those who who are at least 62 years of age, just like the FHA Reverse program (HECM). The program can be a big assist to retirement planning.
Close Jumbo Reverse Mortgage in 30 Days
From application to funding can take less than 30 days. Although some homeowners may want to take their time learning about the product, once they are ready, the loan process is much easier than expected.
Properties eligible for this loan program include Single Family homes, Planned Unit Developments (PUD), and Townhomes (Row Home). Condo’s are not eligible for this program. Also, as per the FHA HECM program, the home must be the owners primary residence. The property cannot be a Second Home or investment property. A borrower must spend at least 183 days of the calendar year in the subject property. Married spouses or other co-borrowers may be living apart because one of them is temporarily or permanently in a health care facility; however, at least one borrower must be living in the subject property in order for the loan to be closed.
Additional Jumbo Reverse Mortgage Guidelines for California
Two appraisals are required, one paid for by the homeowner and one paid for by the lender. The lender does have a minimum FICO score requirement, which is not required on the FHA HECM product. For a California Jumbo Reverse mortgage, the homeowner must have a minimum 700 FICO score. Also, the borrowers cannot have had a bankruptcy within the past 5 years.
To learn more information about this new California Jumbo Reverse Mortgage loan product, contact a local California Reverse Mortgage Specialist.
Authored by Tim Storm, an Orange County, CA Reverse Mortgage Loan Officer – Please contact my office at Alpine Mortgage Planning for more information about an Orange County, CA Reverse Mortgage. 877-786-4243 x 7.
Contact us for your Orange County Reverse Mortgage:
877.786.4243 x 7 | tstorm (at) ochomebuyerloans.com