If you are over 62 years of age, a reverse mortgage might work for you

John and Sarah Kenton love retired living. Their home and yard have never been more cared for, and their grandkids…well, they’re just cuter than all outdoors. There is only one wrinkle in their otherwise idyllic life: Finances. They were sure their social security and pension would be enough to cover their bills, but now they’re wondering if they can keep their lovely home.


Leslie and Brad Wesley have a completely different issue. Their bills are paid on time with a bit left over for weekends to the lake. But they both had a big bucket list of places far from Dallas that they had hoped to explore. Now they are afraid they won’t have the money to take those adventures.


Ida Johnston is 80 years young and wants to stay in her home as long as possible, but her daughter Debby is in charge of the finances now. Debby wonders how they will be able to afford the safety devices and major maintenance issues that are going to arise in the near future.

Brenda Stock is having difficulty with her $2000 monthly payment on her sprawling five-bedroom home. She has good equity in the house but really doesn’t need all that room.


Each of these situations might be handled by a reverse mortgage. John and Sarah could use the reverse mortgage to eliminate their monthly mortgage payment completely. The Wesley’s could use a reverse mortgage to create the cash flow they need to visit Australia and the Holy Land, the first two destinations on their dream itinerary. Debby could use a reverse mortgage to create a line of credit for needed improvements. Brenda can sell her home, buy a smaller home with a reverse mortgage and have no payments ever.


In fact, there are at least 29 possible ways you might be able to use a reverse mortgage. See the box on the right.


How Do You Qualify for a Reverse Mortgage on Your California Home?


The first qualification is really easy to figure out. One homeowner (person on the title of the home) has to be at least 62. The second qualification is almost as easy. You have to be living in the house, and you must continue to live in the home while the mortgage is in effect.


When both spouses have moved out or passed away, there are several options:


  • The house can be sold with the proceeds used to pay off the mortgage, and any remaining equity passes to the heirs.

  • The heirs can pay off the mortgage with cash or a refinance and continue to own the home.

  • The heirs can merely allow the lender to take the house. Even if the house turns out to be worth less than the loan balance, there is no recourse to the heirs. The lender must pay the difference.


BIG PRO #1 - A reverse mortgage is a non-recourse loan. This is huge! It means that as long as you follow the stipulations in the contract, you or your heirs will NEVER be required to pay the lender for any difference between the amount owed and the value of the home.


BIG WARNING #1 – Where most holders of reverse mortgages get into trouble is by failing to pay their property taxes, their homeowner's insurance, or their homeowner's association (HOA or PUD) fees. Failure to pay these ongoing expenses can lead to default. In most cases, these amounts can be added to the amounts paid by the reverse loan proceeds when the loan was first created.. In this way, you are unlikely to find yourself in default.


The third qualification gets a bit more complicated. The equity in the home is a very important part of a reverse mortgage. You must have enough equity in the home to justify the lender either covering the interest that will accrue or extending you the cash or a credit line you need.


The lender will also do a credit check. They want to be sure that you are good at handling your financial obligations.


You might be wondering, “How can the lender offer a reverse mortgage?” The amount of any payment to you and any interest that is charged is added to the amount that you owe on the home. You are reducing the equity of the home. (The equity in your home may also change due to market conditions affecting the value of your home. Since 2010, values have been generally increasing in the California area)


On the other hand, you can also choose to make payments of any amount any time you choose. You can make interest-only payments if you want the equity to stay the same. You can make lump sum payments with no prepayment penalty any time you want. You are always in charge.  


Four Basic Reverse Mortgage Plans


There are four basic ways that a reverse mortgage in the California area works. You may use any of these approaches on an ARM (adjustable-rate mortgage), but you are limited to lump sum payments on a fixed-rate mortgage.


  1. Line of credit (LOC) – You draw money as needed up to the maximum eligible amount. As you draw money out, it increases the loan amount and increases the amount of interest being charged. The amount you draw out plus any interest increases the total mortgage principle and will increase future amounts of interest charged. One amazing aspect of the LOC is that the amount available to borrow goes up every year by the amount of the interest rate plus .5%. So, if your interest rate is 4.5%, your line of credit will increase by 5% per year.

  2. Lump sum – You can draw out a lump sum of cash at closing (this is your only option on a fixed-rate loan.) In this case, you will immediately add to the total amount due (principal) on the loan, and in future months interest will be charged and added to the amount of the loan.

  3. Tenure – With this plan, you get monthly payments for the life of the loan. Maybe you only want to get a payment that is enough to cover your interest as it accrues. Maybe you’d like the amount to pay the interest plus any property taxes and insurance. Or maybe you want to cover all of those things and get a check for a few hundred dollars a month or even more. Depending on your age and the equity in your home, you can choose among these options. Just remember that the amount you draw out and the interest charges will add to the loan, thereby reducing your equity in the home.

  4. Term – You can take monthly payments for a specific number of years. Maybe you only want payments like those in #3 to go on for 10 years because you’re planning to sell in 10 years. You can do that, too.


BIG PRO #2 – You can mix and match these options on an ARM, and sometimes even change your program in the future. Maybe you want a lump sum now and payments. Or maybe you want a line of credit now, but later you decide to take Tenure or Term instead. Most loans allow for you to have this amazing flexibility.


What Are Your Goals, Dreams, Hopes?


Fifty years ago, people didn’t think about these choices when they were seniors. Their home was probably paid off free and clear, and they just left the house to the kids. A lot has changed. Today, you are going to live a lot longer, and you’ll be healthy enough to enjoy adventures much later in life. You are also more likely to want to stay in your home as long as possible.


Your kids may not need to inherit your home. They are doing just fine, financially, and would rather that you spend their inheritance on travel, hobbies, and entertainment in your retirement. Moreover, you probably still have a mortgage on the home, and the payments might be getting in the way of your real goals in life.


Possibly you’d like to give your kids some or all of their inheritance now rather than later. Maybe they need help with an investment, a home of their own, or education expense. You could achieve such ends by using a reverse mortgage.


Think carefully about your current budget needs, your goals for the future, and your plans regarding any inheritance for the kids. If it looks like your plans are going to outlive your current income, give Brandon Wells a call. A reverse mortgage might be the perfect solution.


BIG PRO #3 – A phone call and/or a personal visit with Brandon to discuss your option is completely free and without obligation. Brandon’s goal will be to help you assess your plans and determine whether a reverse mortgage makes the most sense in your case. He will be quick to suggest other alternatives such as HELOC’s or borrowing against your pension if those seem to make more sense. But many seniors are finding that the tax-free cash flow from a reverse mortgage makes a lot of sense.

Reverse Mortgage Uses

  • Afford your bucket list

  • Fund travel to distant lands

  • Increase your monthly cash flow

  • You can receive monthly check for life

  • Pay off your current mortgage

  • Have no mortgage payments in the future

  • Pay off your current home equity line of credit (HELOC)

  • Set up a rainy-day fund

  • Use funds to make a home accessible with ramps, bathtub steps, rails, etc.

  • Fund an active lifestyle

  • Pay off some or all of your credit cards

  • A reverse mortgage line of credit that grows over time

  • Use lump sum to Complete needed home repairs

  • Augment current retirement portfolio plans

  • Buy a car with lump sum

  • Money for legal or IRS matters

  • Pay for Medicare parts B & D

  • Gift money to children or grandchildren (college tuition, new business, down payment)

  • Fund a major home remodeling project

  • Buy a home using a reverse mortgage with no payments

  • Set up reverse mortgage to pay real estate taxes and property insurance

  • Create needed funds above Social Security and pension payments

  • Replace lost income from the death of your spouse

  • Help provide a financial solution to a divorce

  • Stay in your home with at-home care instead of a senior living facility

  • Pay for a nursing facility if your spouse is unable to live at home

  • Increase monthly cash flow so you can pay for life or long-term care insurance

  • Pay off your car loan

  • Strengthen existing estate plan

  • Reverse mortgage funds are tax-free, where selling your home may be taxable event

To Find Out Your Options with a Reverse Mortgage, Click Here To Use Our Reverse Mortgage Calculator.

"Professionalism, Honesty and Total Customer Service; if this is what you value in a business relationship, then Brandon is for you. His attention to details to deliver his client what sets him above the rest. Brandon takes the time to listen to his clients need, present his clients with options to satisfy their needs and builds raving fan relationship for life. When his files close and fund, his client are well informed of the details so no surprises arise!!"

-- Walter Borawski

"I recently referred a family member to Brandon. This in and of itself demonstrates the level of trust I have for Brandon. I referred him a transaction a few years ago I was certain, couldn't get done, but Brandon proved me wrong and was able to get around tax liens, mechanics liens, low credit scores, etc. If you are looking for a reverse mortgage, not only will Brandon get it done if it's possible, but he will provide some of the most competitive terms the industry offers on reverse mortgage financing."

-- Steve Chizmadia

"I had the pleasure of having Brandon on my team at Countrywide. This young man is extremely focused on detail. He very much cares about Customer Service and the quality of his work. I would recommend him to anyone. He will get the job done if there is a WAY."

-- Robin King

"Brandon is well respected in the mortgage industry. He is extremely personable, professional and knows everything there is to know about reverse mortgage financing. He is passionate about helping seniors and has proven this by the many seniors' lives he has changed for the better."

-- Denine "DeDe" Fadell

"Brandon Webb is the best reverse mortgage guy in the business. He has a very high level of integrity, He is an expert in his field."


-- Patrick Marelly

"Brandon is a fantastic resource for obtaining a Reverse Mortgage. I consider him a part of my lending team, as he takes great care of any referrals I give him. He is able to relate well to clients and has incredible follow-through, getting loans done quickly and accurately. And he reports back to me wonderfully. You will love working with Brandon on your Reverse Mortgage."


-- Craig Griffin "Expert Direct Lender CA"

"Brandon gives his clients knowledge, experience, and excellent service to those seeking reverse mortgages."


-- Chuck Weinberger, CCIM

"I've witnessed Brandon's commitment to assist his senior clientele through their reverse mortgage process with dedication and compassion. He watches over his client's loans and makes sure any issues are dealt with immediately and to his client's satisfaction."

-- Laura Strickler

"After 2 years in the financial services industry, I know how much trust you would like to have an adviser. I have had the opportunity to get to know Brandon and have every bit of confidence that he is the person to speak with if you are over 62 and looking into a reverse mortgage."


-- David Bone

"Brandon was a great underwriting associate at Countrywide! Everything we needed from him came SUPER fast. Great to work with him."

-- Luke Syres

"Brandon is very well educated in his area, and has a great attitude about helping others, whether they are clients or not. I feel confident referring others to him. "

-- Danielle Barger

Please reload


One client decided to move from a house to a condo and then decided she made a mistake. She is now selling her condo cash for 400k and is going to use the reverse for purchase to buy a house for 600K and will put down 325k from the sale. Have  anew 600k home with no payments while pocketing the extra 75K

In one case, a senior woman wanted to give her son his inheritance early so he could pay for schooling. She is taking out the reverse of her 429k home and gifting him 175k. 

Sadly we had a case where a woman found out about her husband's  very bad behavior. As part of the divorce, she had to buy him out of their home. She used a reverse mortgage to give him a lump sum and also was able to end payments for the rest of her life.


iHome Mortgage

  • Facebook Social Icon
  • LinkedIn Social Icon
  • Twitter Social Icon

Corporate Address:

12404 Hunters Glen,
Owings Mills, MD 21117

Branch Address:

3732 Sweetbriar Dr,

Mckinney TX 75072


Local: 760-845-5369     

Toll Free: 1-800-598-6265

Email Address: bwebb@ihomemortgage.com

Brandon Webb NMLS 582972
iReverse Home Loans NMLS 1564664

Branch ID: 1587919

For licensing and Texas specific information click here

© 2018 by iReverse Home Loans