Sacramento Reverse Mortgage
All Reverse Mortgage® is a HUD approved lender working directly with homeowners through all of California including our state capital Sacramento. All Reverse began in November 2007 and as the name implies, the only loan product that All Reverse Mortgage® originates is the federally-insured home equity conversion mortgage.
For over a decade we have been offering our reverse mortgages to CA homeowners and maintain an Exemplary A+ Rating by the BBB.
We are proud to have become California's #1 rated reverse mortgage lender with a perfect 5.0-5.0 star rating.
While being the seventh largest city in California, Sacramento is home to the state’s capital. Sacramento is also the county seat of Sacramento County, and a major part of the four county core area of Sacramento, Placer, Yolo and El Dorado Counties. Sacramento grew as a result of Sutter’s fort in the early 1800’s and benefitted greatly from the California Gold Rush. Sacramento has many neighboring cities and unincorporated areas including Antelope, Aden-Arcade, Carmicheal, Fair Oaks, Gold River, La Riviera, Orangevale, Rio Linda/Elverta, North Highland and Vineyard. With its diverse cultural attractions, colleges, theatres and sporting events, Sacramento is a great place to call home and was cited in 2004 as one of America’s most livable cities.
Sacramento Reverse Mortgage Limits
HUD has now announced its interpretation of H.R. 3221 and how it will implement this legislation. HUD cites that the legislation calls for a national limit of $417,000 for the HECM program and this new limit is now in place nationwide. This is very exciting for all Sacramento area residents as they were previously subject to different, lower limits. What this means is that if you are a senior borrower and you own a home in the area valued at more than the previous limit, this represents an even bigger opportunity.
Like most California areas, the Sacramento area residents, contrary to the national results, saw a decrease in the number of HUD HECM mortgages insured from the year to year period-ending September 2008 versus year-ending September 2007. Some speculate that the higher property values in California kept many of the senior borrowers who would otherwise have benefitted from the HUD HECM mortgage from being able to utilize the program. The drop in property values nationwide, the disappearance of private jumbo programs and the increased HECM limits now give Sacramento area residents another reason to again review this product.
Many senior homeowners have seen their retirement funds shrink drastically over the last 15 months. A top congressional budget analyst estimates that pension plans have lost as much as $2 Trillion during this same time. This change in lending limits could not have come at a better time for some Sacramento area seniors who may now be forced to find other ways to augment their incomes. And speaking of selling, HUD has announced that effective January 1, 2009, reverse mortgages can now be used for purchase transactions. Sacramento residents who wish to relocate for any reason can now utilize the reverse mortgage program to purchase a home with no monthly payments as well.
A reverse mortgage uses actuarial tables much the same as insurance products and borrowers receive more money the older they are. Therefore, a 62 year old borrower just meeting the age requirement will receive much less cash than a 78 year old borrower with the same $400,000 home. When borrowers do not take all their funds at the beginning of the loan and choose to use the line of credit option, the line of credit grows annually on the unused portion as the borrower would be eligible for a higher loan amount at the increased age. Some borrowers have asked whether or not they should wait for a few years to apply until they are older to take advantage of higher principal limits for older borrowers. Only you and your trusted financial advisors know your situation but there are other factors which go into the determination of how much money you will receive on a reverse mortgage which also include interest rates and property values.
If your property value declines, you may be eligible for less money. If the interest rates rise from their current near-historic low levels, then you may also be eligible for less money. The other factor that changes on which we have already seen several changes this year alone is the margin. The margin is added to the index to determine the final rate you pay and margins have risen this year as uncertainty has grown in the mortgage secondary market. When the margin rises, your ultimate rate increases and you will receive less money. With the purchase program coming out, HUD uses the appraised value to determine proceeds to the borrower. Senior Sacramento borrowers who are able to find homes which appraise for more than the sales price will be required to put even less money down on purchases under the HUD program!
The only constant is your age…you do know how old you are and you do know when your next birthday is. No one can predict the future with interest rates or property values. If the values rise considerably, you can refinance a reverse mortgage and the HUD insurance does not need to be paid a second time…you would just pay the difference, if any, from your old premium amount to the new premium based on any increase in the principal lending limit in your area. The Senior Specialists at All Reverse Mortgage Company are committed to helping you with answering all your questions and if the reverse mortgage is right for you, closing your loan quickly and easily. If it’s time for you to put your equity in reverse so that you can keep your life moving forward, then we’re here to help!
Sacramento Reverse Mortgage Facts
|City||Homeowners Age 62+||Reverse Mortgages Closed Last 12 Months||Purchase Reverse Mortgages Closed Last 12 Months||Lenders in Sacramento (est)||Avg. Home Value|