Looking for a flexible financial solution in Los Angeles? Consider a Reverse Mortgage with variable adjustable rates and lines of credit! Learn about the benefits of this unique program today

If you’re an older adult and have lived in your home a long time, you’ve probably at least thought about a reverse mortgage. As long as you live in your home as a primary residence, you could be qualified for a reverse mortgage.

Lenders can offer reverse mortgages, which provide a line of credit you can use as needed. For example, you may get a reverse mortgage offering a line of credit to pay for essential home repairs or maintenance.

Reverse mortgages can also be offered with a variable interest rate, which could be helpful in various ways.  One crucial takeaway about reverse mortgages: you aren’t necessarily obligated to pay anything back toward the balance as long as you maintain living in the home.

How Do Reverse Mortgages Work?

Reverse mortgages are re-paid when you sell the property, move, or pass away. Spouses and partners can be either co-borrowers or eligible non-borrowers.

If one partner or spouse passes away or moves out, the other partner can stay in the home without paying anything.

Interest rates on eligible non-borrowers on reverse mortgages can be either variable or fixed. One thing to remember: interest, fees, and principal balances aren’t paid on a reverse mortgage until the borrower, co-borrower, or eligible non-borrower moves out or passes away.

Variable Interest Rates and Reverse Mortgages

Many reverse mortgages are fixed-rate, meaning they have a set interest rate that won’t change over the loan.  Variable-rate mortgages do change. They are tied to index and margin rates for mortgage lending. That means they can increase or decrease if changes occur in rate benchmarks. 

There are also several different types of reverse mortgages, including:

  • Single-purpose reverse mortgages: A variation of a reverse mortgage that can pay for property taxes and repairs.
  • HECM loans: Home Equity Conversion Mortgages – a government-insured type of reverse mortgage.
  • Proprietary reverse mortgages, also sometimes called jumbo reverse mortgages, can provide a higher amount of loan than HECM loans can offer.

Considering Different Kinds of Reverse Mortgage

According to Investopedia, there are “unscrupulous lenders out there looking to take advantage of borrowers.” This is why speaking with an experienced mortgage broker who understands different reverse mortgage programs, interest rates, and terms is essential. California Platinum Loans is experienced and qualified to discuss reverse mortgages and options with you. Don’t hesitate to contact them and learn more.

Sources:

Kagan, Julia. “Proprietary Reverse Mortgage,” Investopedia, 10 June 2021

Lake, Rebecca. “Interest Rates for Reverse Mortgages,” Investopedia, 11 August 2022

California Platinum Loans

  https://californiaplatinumloans.com

Attention single parents! Don’t let a tight budget hold you back from home ownership. Check out these top home loan programs designed to help you achieve your dream of owning a home

solo parent

Purchasing a home can be challenging, especially for single parents with a tighter budget due to the realities of single parenthood. Fortunately, various loan programs are available to help single parents navigate home-buying and realise their dream of home-ownership.

Best Loan Programs for Single Parents

Looser eligibility requirement loan programs are typically the best bet. Here are some of the best loan programs for single parents:

Federal Housing Administration (FHA) Loans

FHA loans are government-insured and reasonably easy to qualify for. This type of loan has a low down payment of 3.5%, low monthly loan insurance, and availability to individuals with credit scores as low as 500.

V.A. Loans

V.A. loans are a good choice for veterans, active U.S. military members, or eligible surviving spouses. This loan offers extensive money-saving benefits and services with no mortgage insurance, zero down payment, low-interest rates, and more.

USDA Loans

USDA loans are provided by the U.S. Department of Agriculture. USDA loans aim to assist single parents with low and moderate incomes who reside in rural areas. These loans offer zero down payment requirements, low-interest rates, and a lower mortgage insurance premium than FHA loans.

Conventional Loans

Conventional loans are a prevalent loan type best suited for salaried employees or consistent earners with a good credit score and some savings. If you are a first-time home-buyer, conventional loans can provide down payments as low as 3%.

Consult a Mortgage Professional

The best low-income loans for single parents vary based on your circumstance and prospective property. It’s essential to consult a mortgage 

Single parents who dream of owning a home but are nervous about its challenges should know that home-buying assistance programs can help them purchase a home. We’ve listed some loan programs that may work best for those with a tighter budget due to the realities of single parenthood.

Looser eligibility requirement loan programs are typically the best bet. Fortunately, various loan programs are designed for lower-income homebuyers, with many offering low down-payment options. Here are some of the best loan programs for single parents’ home-buying journey:

Federal Housing Administration (FHA) Loans are government-insured and reasonably easy to qualify for. This type of loan has a low down payment of 3.5%, low monthly loan insurance, and availability to individuals with credit scores as low as 500.

V.A. Loans: A good choice for veterans, active U.S. military members, or eligible surviving spouses, this loan offers extensive money-saving benefits and services with no mortgage insurance, zero down payment, low-interest rates, and more.

USDA Loans: This loan offered by the U.S. Department of Agriculture is devised to help single parents with low and moderate incomes in rural areas. USDA loans have zero down payment requirements, low-interest rates, and a lower mortgage insurance premium than FHA.

Conventional Loans: This is a prevalent loan type best suited for salaried employees or consistent earners with a good credit score and some savings. Conventional loans can offer down payments as low as 3% if it’s your first time purchasing a house.

The best low-income loans for single parents vary based on your circumstance and prospective property. 

Consult a mortgage professional to help weigh your options to get the best deal available. You can contact us by dropping us a line or sending a message on our website. 

Please note that specific loan program availability and requirements may vary, so please contact the mortgage advisor for more information.

California Platinum Loans

  https://californiaplatinumloans.com

According to Fannie Mae’s most recent forecast, the housing market is likely to revert to a normal-ish level of price appreciation for the silent majority despite an abatement from the year’s dramatic price surge.

Case-Shiller Data Suggests that Home-Price Appreciation is Tapering

The S&P Case-Shiller U.S. National Home Price NSA Index reported an annual gain of 19.8% in August, indicating that home price growth is beginning to settle throughout the country. It is nearly the same increase as the previous month, marking the first time since early 2020 that the year-over-year increase in home prices hasn’t seen significant increases from one month to the next. The Case-Shiller 10- and 20-city composite indices, which track price increases in the country’s biggest cities, also mirrored the cooling. The 10-city index increased by 18.6%, while the 20-city index increased by 19.7%, slightly less than their July gain rates.

It’s worth noting that the 20-city composite index continues to climb faster than the 10-city index. Because the latter index only includes prices in the most populous U.S. metro areas, the 20-city’s higher gain indicates price growth in smaller, more inexpensive regions where migration from more expensive cities has aided price rises. Phoenix continued to lead all cities with annual price gains of 33.3%. It was the 27th straight month that the Arizona capital topped this category. San Diego (26.2%) was second, followed by Dallas (24.6%) and Seattle (24.3%).

Fannie Mae Forecasts Housing Market Cool-Off In 2022

According to Fannie Mae’s most recent forecast, median home prices will increase by 7.9% between the fourth quarter of 2021 and the fourth quarter of 2022. While this would be a slowdown from the year’s dramatic price surge, it would still be robust growth by historical standards. (Since 1987, the average yearly increase in property prices in the United States has been 4.1 percent.) At least in the eyes of Fannie Mae, the housing market is likely to revert to a normal-ish level of price appreciation.

“Mortgage rates may rise in response to the tighter environment, but we expect the severe shortage of homes for sale to remain the primary driver of strong house price appreciation through at least 2022, limiting interest rate effects on home sales and home prices,” wrote Doug Duncan, chief economist at Fannie Mae, in its latest 2022 outlook.

New Home Sales Post Double-Digit September Gain

The U.S. Census Bureau and the Department of Housing and Urban Development report that newly constructed single-family homes sold at a seasonally adjusted annual pace of 800,000 units this month. This surge was a 14.0% increase over August’s pace of 702,000 units. Earlier reports put the figure at 740,000 units. Sales of 971,000 units were sold at a seasonally adjusted rate of 17.6 percent higher in September 2020 than in September 2019. Analysts polled by both Econoday and Trading Economics had a consensus forecast of 760,000 in sales.

The median price of a home sold in September was $408,800 compared to $344,400 last year. The average prices for the two periods were $451,700 and $405,100, respectively.

There were an estimated 379,000 new homes for sale at the end of September. At the current rate of sales, this amounts to a 5.7-month supply. In August, the inventory was good for 6.5 months, while in September 2020, it was only enough for 3.5 months.

The majority of the sales growth in September came from two regions: the Northeast with 32.3 percent, and the South with a 17.8 percent increase in sales compared to August.

Next weeks potential market moving reports are:

  • Monday, November 1st – Construction Spending
  • Tuesday, November 2nd – Homeownership Rate
  • Wednesday, November 3rd – ADP Employment Report, Federal Reserve Statement
  • Thursday, November 4th – Initial Jobless Claims, Continuing Jobless Claims
  • Friday, November 5th – Consumer Credit, Unemployment Rate, Average Hourly Earnings

As your mortgage and real estate professional, I am happy to assist you with any information you may need regarding mortgage or real estate trends.  I welcome the opportunity to serve you in any way I possibly can.  Please feel free to reach me at (800) 216-1047

California Platinum Loans

  https://californiaplatinumloans.com