Rob Kanyur and the Kanyur Team are your licensed reverse mortgage specialists in Palm Springs, California.
Reverse mortgage loans are a popular financing option for seniors in Palm Springs, California, that allows homeowners to tap into their home’s equity.
How Does a Reverse Mortgage Loan Work?
Reverse mortgage loans allow homeowners aged 62 and older to convert a portion of their home equity into cash. If there is still a balance on the home, the reverse mortgage pays it off, which eliminates the burden of obligatory monthly mortgage payments. All the borrower needs to take care of are the property charges, such as taxes, insurance and maintenance. The cash from a reverse mortgage is considered loan proceeds, which means it is generally tax free.*
Our Reverse Mortgage Loans in Palm Springs, California
Home Equity Conversion Mortgage (HECM)
HECMs are the most common type of reverse mortgage loan and are insured by the Federal Housing Administration (FHA). A HECM allows homeowners who are 62 or older to convert a portion of their home’s equity into cash, which can be received in a lump sum, line of credit, monthly payments or a combination of these options.
HECM for Purchase (H4P)
An H4P is a type of reverse mortgage specifically designed for seniors who want to purchase a new home. This can be a useful option for seniors who want to downsize, move closer to family or relocate to a more accessible home.
It can greatly increase home buying power and enable borrowers to move to a more expensive area than their current residence. Like a traditional HECM, the borrower is not required to make monthly mortgage payments. Instead, they only need to take care of property charges like taxes, insurance and upkeep.
Jumbo Reverse Mortgage Loan
This reverse mortgage loan is for high-value homes that exceed the $1,149,825 loan limit set by the FHA. The amount of cash available is based on the appraised value of the home, and borrowers typically have more flexibility in payment options.
Reverse Mortgage Loan Benefits
People get reverse mortgages for many reasons, including:
No Monthly Mortgage Payments
Even when using a reverse mortgage loan to purchase a new home, borrowers are not obligated to make monthly mortgage payments. Instead, they are responsible for paying property charges, such as insurance, taxes and home maintenance. This can be an incredible financial relief for many retirees and even enables many to retire earlier than they thought possible.
Long-Term Care (LTC)
Reverse mortgage loan proceeds are commonly used for healthcare-related costs. For example, if a homeowner needs to hire an in-home caregiver or pay for other long-term care services. This is particularly helpful for seniors who want to age in place in their homes but are concerned about health-related issues.
Portfolio Hedging*
Reverse mortgage loans can also be used as a buffer asset to protect investments in down markets. Instead of selling off investments at a loss, a borrower could use their loan proceeds to cover expenses until the markets recover.*
Realize Home Equity Gains
Home equity has hit all-time highs in recent years, but without a reverse mortgage loan, most homeowners are unable to benefit from equity increases without selling their homes or taking out new forward loans. A reverse mortgage offers homeowners the ability to benefit from home equity appreciation while also owning and living in the home just as they did before.
Financial Flexibility
Borrowers have flexibility in how they receive their funds. A line of credit with guaranteed growth is a popular option (applies to unused funds), but borrowers can also choose a lump sum payment, monthly payments or a combination of these options.
Government-Insured
HECM reverse mortgage loans are insured by the Federal Housing Administration (FHA), which offers additional consumer protections. HECMs are non-recourse loans, meaning the homeowner or their heirs will not have to pay a loan balance out of pocket. Their obligation will be satisfied simply by selling the home.**
For example, if someone takes out a HECM when the housing market peaks but sells their home years later when the market is much lower, neither the homeowner nor their heirs pay the difference. Conversely, if the home appreciates even further over that time, the homeowner or their heirs are entitled to any leftover equity after the home sale pays off the loan. This non-recourse feature can provide peace of mind to those concerned about passing on debt to their heirs.**
Interested in a Reverse Mortgage in Palm Springs, California?
Fill out the form and Rob or a member of the Kanyur Team will be in touch!
*This advertisement does not constitute tax or financial advice. Please consult a tax and/or financial advisor regarding your specific situation.**There are some circumstances that will cause the loan to mature and the balance to become due and payable. Borrower is still responsible for paying property taxes and insurance and maintaining the home. Credit subject to age, property and some limited debt qualifications. Program rates, fees, terms and conditions are not available in all states and subject to change.