What is a Reverse Mortgage

A reverse mortgage is a loan available to seniors over the age of 62 which allows them to convert equity in their home into cash. These loans were created to give seniors access to cash for expenses such as home improvements, unexpected medical costs, and in-home care by utilizing the accumulated equity in their homes.

This type of loan is called a reverse mortgage because instead of the borrower making monthly mortgage payments to their lender as they would with a traditional mortgage, the lender makes payments to the borrower. They will also have the need to pay taxes, insurance, and maintain the property. Unlike a traditional home equity loan or second mortgage, a reverse mortgage does not have to be repaid until the borrower no longer occupies the home as their primary residence.

The most common reverse mortgage is the Home Equity Conversion Mortgage (HECM) which is not insured by the FHA. An alternative option is the Proprietary Reverse Mortgage which is not backed by the federal government.

How Can We Help?

At CB Reverse Mortgage, we know all about reverse mortgages and can see if you qualify for one. If you are located in the San Fernando Valley, California, click here to contact us today to get started.