Home Equity Conversion Mortgage


If you are in need of more accessible income, then a Home Equity Conversion Mortgage (HECM) could be used with your Santa Cruz, Monterey Campbell, or San Jose, CA house. A popular alternative to reverse mortgages, equity conversion loans allow seniors to borrow money against the value of their houses. Here at Retirement Funding Solutions, we help seniors appraise their homes so they can secure Federal Housing Administration (FHA) insured loans. These federally regulated plans have lower interest rates and do not require payments until you leave the house. FHA regulations also make sure that you will never owe more than the value of the loan itself. The borrower must occupy the home as a primary residence and is responsible for payment of property taxes, homeowner's insurance, the costs of home maintenance and any HOA fees.
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Why Use a Reverse Mortgage?

Reverse Mortgage Printed on a Paper — Mortgages in Santa Cruz, CA
There are several advantages to having a federally regulated agreement as opposed to a privately funded mortgage. We offer a variety of payment plans, and in any case, you can count on the loan to be repaid by the sale of your home. We can also customize your arrangements for the loan to make it easier on you. We can help formulate lump sum payments or monthly installments based on your preferences. We can also assist in finding options with minimal interest and work within your line of credit. Retirement planning has never been less stressful.

One of the most overlooked yet beneficial features of the HECM is the line of credit. Unlike traditional home equity lines of credit which can be closed or reduced, this special credit line is secured and cannot be reduced if home values decrease or if interest rates increase. Many homeowners, like you, have set up the line of credit for use by the surviving spouse to offset a loss of income and much more. With the HECM line of credit, you are only charged interest and insurance on the funds that you use in your HECM loan. Your financial planner may consider strategic withdraws with outlined strategies where retirees may choose to use part of their credit rather than take income from investment accounts whose value may be declining in a given year. The HECM line of credit is available when you need it.

You May Qualify for a Reverse Mortgage

  • At least one borrower must be 62 years of age or older
  • Borrowers 62 or older with a spouse under the age of 62 may still qualify with a Non-Borrowing Spouse provision
  • Own your house or condominium as your current primary residence
  • Home value allows for payment of existing mortgage and closing costs
  • Meet minimum credit history guidelines
* Your loan will become due if you no longer live in your home, fail to pay property taxes or homeowners insurance premiums, or do not keep your home in good repair.

Let Dan Help You

We can ensure you a plan that meets your financial needs. Our expertise with federal and state regulations mean that you can apply for a HECM in Santa Cruz, Monterey, San Jose or Campbell with the confidence that your finances will be secure. You don't need to keep struggling with monthly bills when solutions are available. Please call us at 831-423-2900.