Reverse Mortgages: Basics

Reverse mortgages enable homeowners 60 and over to safely convert a portion of their home equity into cash without selling their home or taking on monthly debt payments. If you're not 60 or older, contact us for other payment-free options to access your home equity.

The most popular of all reverse mortgages for seniors is the HUD / FHA Home Equity Conversion Mortgage (HECM). "HUD" is the U.S. Department of Housing and Urban Development and "FHA" is the Federal Housing Authority. These government entities created, regulate, and insure most California reverse mortgages and in all 50 states.

Benefits

Get tax-free cash and make no payments for as long as you live in your home
Pays off any existing mortgage, eliminating your mortgage payments, with the potential for additional cash available
Retain your home ownership - you control the title
Money can be used for any purpose
Money can be received monthly, as a lump sum, as a line of credit or any combination thereof
Available line of credit grows like a saving account, at about 5% per year
Conservative limits use only a fraction of home equity
Leave your home and remaining equity to your heirs
You can never owe more than the home is worth
HECM Reverse Mortgage is guaranteed by Federal Housing Authority (FHA)
Regulated by the US Dept. of Housing and Urban Development (HUD)
Requires talking with an independent, HUD-trained reverse mortgage counselor to confirm that the program is right for you

Requirements

Minimum qualifying age is 60 (with some exceptions)
Qualifying [LINK] depends on age, equity in the home and location
No income or credit qualifications (except current bankruptcies) and no health requirements
Home can be a single family, condo, town-home, 2-4 unit building, some mobile / manufactured homes and stock cooperatives
Primary residence homes only
California Reverse Mortgages through FutureSafe, typically take 25-35 days to obtain
Depending on qualification, a variety of programs are available: FHA/HUD Home Equity Conversion Mortgage (HECM), Fannie Mae Home Keeper, and many other bank programs (all reverse mortgages for seniors are reviewed here)

Reverse Mortgages: Steps to Obtain

Educate yourself about the basics, and why use FutureSafe
Use our reverse mortgage calculator to see if you qualify and then request a free quote (see form below)
Complete HUD Reverse Mortgage counseling (1 hour phone call, contact us to request)
Apply for the reverse mortgage, home is appraised, and loan is underwritten
Sign the closing documents and the process is complete