Reverse Mortgage in Riverside CA | Local Broker

Welcome to Pacific Mortgage Group, your trusted mortgage broker in Riverside, CA. We are your partners in navigating the complexities of reverse mortgages. Our dedicated team is committed to serving the unique needs of Riverside’s homeowners, particularly those who are looking to convert part of the equity in their homes into cash.

What is a Reverse Mortgage?

A reverse mortgage is a loan designed for homeowners aged 62 and older that allows them to convert part of the equity in their homes into cash according to the HUD FHA Reverse Mortgage for Seniors (HECM). Unlike traditional mortgages, borrowers aren’t required to make monthly payments. Instead, the loan balance is repaid when the homeowner leaves the home permanently as explained by the Federal Trade Commission.

Unique Characteristics of Riverside That Make Reverse Mortgages More Attractive

Riverside, CA has several unique characteristics that could make it suitable for a reverse mortgage:

1. High Homeownership Rate: According to the U.S. Census Bureau, Riverside has a homeownership rate of approximately 65%, which is higher than the national average. This means a larger portion of residents could potentially qualify for a reverse mortgage.
2. Senior Population: Riverside has a significant senior population, with about 14% of its residents being 65 or older according to the Age and Sex Composition in the United States: 2019. Since reverse mortgages are only available to homeowners aged 62 and up, this demographic trend could increase demand for these types of loans.
3. Rising Home Values: Over the past decade, home values in Riverside have been consistently rising according to Zillow. This increase in home equity can make reverse mortgages more attractive to homeowners.
4. Cost of Living: The cost of living in Riverside is higher than the national average as reported by Payscale. A reverse mortgage could help seniors with high living expenses tap into their home equity to cover these costs.
5. Retirement Destination: Riverside is known for its warm climate, outdoor recreational opportunities, and cultural amenities, making it a popular retirement destination according to Best Place to Retire. As a result, there might be a higher demand for financial products like reverse mortgages that can help seniors maintain their lifestyle in retirement.

However, it’s important to note that while these factors may make Riverside more suitable for a reverse mortgage, this type of loan isn’t right for everyone. Homeowners should consider their personal circumstances and consult with a trusted financial advisor before making a decision.

Pacific Mortgage Group: Top Rated for Reverse Mortgages

As one of the leading mortgage brokers in Riverside County, CA, we offer comprehensive mortgage solutions tailored to meet your specific needs.

Expert Advice and Guidance

Our team provides years of experience and a deep understanding of Riverside’s real estate landscape, ensuring you get personalized guidance on reverse mortgages according to our About Pacific Mortgage Group page.

Commitment to Client Satisfaction

Our clients are at the heart of everything we do. As your Riverside mortgage broker, we are dedicated to ensuring your satisfaction by providing exceptional service, transparent communication, and personalized mortgage solutions as stated on our About Pacific Mortgage Group page.

Seamless Process

We simplify the complex loan process into five manageable steps, tailoring our services to your unique needs as detailed on our Mortgage Process at Pacific Mortgage Group page.

How to Qualify for a Reverse Mortgage with Pacific Mortgage Group

To qualify for a reverse mortgage, you must be at least 62 years old, own your home outright or have a low mortgage balance. You must live in the home as your primary residence and have no delinquent federal debts according to the FHA Reverse Mortgages (HECMs) for Seniors page.

Benefits of a Reverse Mortgage

the main benefits of a reverse mortgage:

1. Helps Secure Your Retirement: A reverse mortgage can provide an additional income stream during your retirement years, helping to make your retirement more secure according to Forbes.
2. Stay in Your Home: One of the significant advantages of a reverse mortgage is that you can continue living in your home while accessing its equity as explained by Investopedia.
3. Pays Off Existing Home Loan: If you have an existing mortgage, the proceeds from a reverse mortgage can be used to pay it off according to the same Investopedia article.
4. No Monthly Mortgage Payments: Unlike traditional mortgages, with a reverse mortgage, you don’t need to make monthly payments. The loan is repaid when the homeowner leaves the home permanently according to the Federal Trade Commission.
5. Access to Cash: A reverse mortgage allows you to access a large amount of cash which can be used for any purpose as reported by CBS News.
6. Tax-Free Money: The money you receive through a reverse mortgage is typically tax-free and won’t affect your Social Security or Medicare benefits according to the Federal Trade Commission.
7. Build Equity Over Time: In contrast to a cash-out refinance where you build equity over your loan term, a reverse mortgage provides you with immediate access to your home’s equity as explained by LendingTree.

Please note that while a reverse mortgage has several benefits, it’s important to also understand the potential drawbacks and consult with a financial advisor or a trusted mortgage professional before making a decision.

Potential Drawbacks 

A reverse mortgage can provide significant financial support for homeowners aged 62 and older, but it’s important to be aware of some potential drawbacks:

1. Risk of Foreclosure: If you fail to meet the terms of the loan, such as paying property taxes, insurance, and maintenance costs, you could risk foreclosure.
2. Reduces Your Estate’s Value: Since a reverse mortgage decreases your home equity, it may result in your heirs inheriting less.
3. High Costs: A reverse mortgage comes with upfront and ongoing costs like origination fees, mortgage insurance premiums, and interest charges, which could be higher than traditional mortgage costs.
4. Rising Loan Balance: The loan balance of a reverse mortgage increases over time as interest on the loan and fees accumulate.
5. May Affect Needs-Based Assistance Eligibility: The income from a reverse mortgage could impact your eligibility for needs-based government assistance programs.
6. Loan Becomes Due: The reverse mortgage loan becomes due when the borrower sells the home, moves out of the home as their primary residence, or passes away.
7. Can Worsen Financial Situation: If you start off the loan already struggling financially, the ongoing costs of a reverse mortgage could potentially worsen your situation.

Contact Us Today

If you’re interested in learning more about reverse mortgages or if you’re ready to start the application process, contact us today. Call us at (951) 531-1399 or send us a message through our contact page. We would love to answer any questions or discuss any concerns you may have about obtaining a reverse mortgage in Riverside, CA.