First, let me make the disclaimer that I am not giving you tax or legal advice. I certainly do not have a law background and while I do have active CPA and CFP licenses, I'd encourage you to speak with your financial advisor on this matter. As far as I know, where you live (as far as geographically) is not a factor in determining whether you are allowed to have a reverse mortgage. What is important is the following:
Also called a home equity conversion loan, a reverse mortgage is a financial tool that is designed to enable the homeowner to take advantage of the equity she has in her home to access a ready source of cash. The Federal Housing Administration (FHA) has established a number of qualifications that must be met to get a mortgage loan:
1. You must be at least 62 years of age or older at the time that you apply for a reverse mortgage.
2. You must have fully paid off your current mortgage loan and own your home outright. Alternatively, you must have a low loan balance left to pay.
3. You must actually live in the home as your primary residence for the duration of the mortgage period, otherwise the mortgage will be due in full.
4. The home must be a single family home, condominium or planned unit development.
5. Appraisal fees, a loan origination fee and closing costs must be paid at closing. These may be deducted from the home's equity.
Assuming you meet the above parameters, you may qualify. However, whether it is appropriate or not for you is a whole other question that needs serious examining. In my experience of looking at these, I have found the fees to be rather high (keep in mind, financial products generally do not exist or come about unless someone is trying/going to make money from them.) It may be appropriate for you, but please make sure you consult a professional and understand exactly what all the costs involved are.
Chad Basinger, REALTORÂ®, CPA, CFPÂ®
In addition to your accountant and attorney you'll want to have your other family members also review what you're doing to make sure it's the right overall plan for your future and their's. They'll be counselling you'll need to complete, along with your family members, and you'll want to have well meaning relatives write down any and all questions they may have along with yourself.
Here's a website that might answer a few questions you have, http://reversemortgageguides.org/
I hope this information was helpful!
Yes Reverse Mortgages are allowed in Oaks North.
Excellent advice from Chad. It is best to consult whomever is assisting you in your overall Financial Estate Planning as this may or may not be a good idea for you.
Marcie Sands, SRES, REALTOR
Simply The Best Real Estate Co., Inc.
Let me know if I can help you in any way!
Joan Wilson (Realtor, SRES, Ecobroker, Certified REO, HAFA, and Short Sale Specialist)
California Cool 4 Sale
Prudential California Realty
Direct Phone: 760-757-3468
800-975-7481 x 111
License # 01341483
Find Your Dream Home:
Reverse mortgages are FHA insued loans which can in fact be used in a property in Oaks North as long as it is in good condition.
Let me know if I can help you with anything else.
Daniel Di Matteo
CENTURY 21 Award