Temecula Reverse Mortgage Question - We live on a huge property (over 5 acres) can we get a reverse mortgage?
The answer is, maybe! (Don'tcha just hate that?)
FHA-HECM and reverse mortgage lenders have some restrictions for HECM Reverse Mortgages - Top 10 Questions on larger parcels of land .
If the answers to these questions and conditions are satisfactory, then the homeowner can proceed with the HECM application.
Temecula Reverse Mortgage Story
Recently I closed a reverse mortgage transaction with a lovely couple on over 11 acres just south of Temecula. Their home was beautiful, a single story Spanish style hacienda with a “to die for” view. Of course, they never want to leave! In the past, the property had been used to grow, harvest and sell avocados. But the cost of pumping well water and trying to live on a fixed income forced the homeowners to stop irrigating the avocados and they no longer earned income from the trees. Their home was paid for free and clear, but the cost of living was taking it’s toll, slowly eating into their savings. (Even without irrigating 10+ acres, it was expensive just to keep the place up) Enter the reverse mortgage solution. The property appraised for over $600,000 and the clients who were 66 years old qualified for over Find out what you qualify for! in loan proceeds, after closing costs. They chose to take $50,000 in cash at closing to payoff some bills and beef up their checking and savings accounts and the balance of $310,000 was left in a What is a "Growing Line of Credit" to supplement their monthly income as needed. Some months they might not need to draw any funds, and others they might need to access funds, especially around tax time and the holidays. The line of credit will also be a good source of emergency funds should anything unexpected come up. The homeowners are well situated now to enjoy their property. Being prepared brings peace of mind.
By Deborah Nance
Your Local Southern California Reverse Mortgage Professional
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