California Reverse Mortgages
For decades, California has been known for its exobitant real estate prices and there is a lot of inquiry and controversy that surrounds the industry in the sunshine state. With the creation of the reverse mortgage type of loan by the FHA some years back, California has continued to lead in the number of inquiries generated for this particular information. This is generally due to the fact that statistics show there are over 2 million senior citizens in the State of California alone who could be eligible for a reverse mortgage. There are different packages when it comes to reverse mortgages and that is why the FHA requires that anyone applying for a reverse mortgage attend a counseling session. By the year 2025, it is reported that the State of California will average 6.4 million persons over 65 years old and the reverse mortgage lenders are quickly reviewing their existing packages in view of this development.
Generally speaking, reverse mortgages in the State of California are no different than any other reverse mortgage in other states. The reverse mortgage regulations and stipulations as conducted by the FHA (Federal Housing Administration)work in California in the same parameters as they would elsewhere.
As similar as California reverse mortgages are similar to others elsewhere as we have seen, there is at least one unique fact that a California reverse mortgage applicant should be aware of; In the State of California, senior citizens enjoy what is called a deffered property tax program. This is a unique program which allows seniors to practically borrow money from the government to pay property taxes. There are certain restrictions however and the State Controller can furnish an applicant with more details. It is not uncommon in California for seniors to apply for a reverse mortgage with the intention of paying off property taxes.
The agency that regulates mortgage brokers In the State of California, the department that regulates mortgage brokers is the Department of Real Estate (DRE). It is crucial to ensure that your mortgage broker that is advising you on the reverse mortgage is licensed by the DRE.
In California, reverse mortgages can legally be paid back in advance without any penalties although this does not bar any fees, payments, or other charges that would have otherwise been owed when the reverse mortgage became due.
