California reverse mortgage lenders are agencies, either nonprofit or governmental, offering California reverse mortgage to senior American citizens. A citizen of the US who has reached the age of sixty-two and owns a house is eligible to apply for a reverse mortgage. These reverse mortgage loans are authorized by the Department of Housing and Urban Development - HUD - through the Federal Housing Administration - FHA.
California reverse mortgage lenders offer three types of reverse mortgage loans: single purpose, federally insured and proprietary reverse mortgages and the California reverse mortgage lenders vary with these types.
In the first type of mortgage loan, the California reverse mortgage lenders are nonprofit organizations or state and local government agencies. The federally insured Home Equity Conversion Mortgage or HECM is provided by the US Department of Housing and Urban Development - HCD. This is the only type of reverse mortgage loan where the lender is actually the federal government. The third category of reverse mortgage loan is private, and the California reverse mortgage lenders in this case are mainly private companies.
California reverse mortgage lenders also offer several payment options to the borrower. The borrower can get the loan as a one-time lump sum or through regular monthly payments. California reverse mortgage lenders offer the payment based on the value of the mortgaged home. The repayment of the reverse mortgage loan has to be done when the owner moves from his home or sells the property. If the borrower happens to pass away then the borrowed amount has to be paid by the heirs, or the lender will sell the property in order to recover the loan amount and interest.
Non-federal reverse mortgage loans are provided by a number of organizations employed in lending. It is advisable to consult a counselor and know about the most suitable reverse mortgage schemes available before applying for one.
Back to Articles |
