Reward yourself.
Financial freedom through a reverse mortgage.
Step 1
Understanding & Education
You’ll meet with a professional mortgage expert to clarify questions and find out how much you qualify for.
Is a Reverse Mortgage your next best move?
A reverse mortgage is a specialized loan you may have heard about, but it’s often surrounded with conflicting information and confusion.
Working with our experienced team means you’ll get the personal attention you deserve and no hidden surprises.
PRO Tips
If you’re over the age of 62 and have built equity into your home, a reverse mortgage might offer you financial freedom and the ability to stay in your home with peace of mind.
Reverse mortgages explained.
A reverse mortgage is similar to a traditional mortgage: you borrow money by using your home as collateral for the loan. You are still the homeowner and the title stays in your name.
It’s unique in that, instead of making a monthly payment, you can defer your payments, and you can even choose to receive money monthly. The payments you receive are based on your new loan terms, and are measured against the equity you’ve built in your property.
Most common reverse mortgage loans:
Jumbo Reverse Mortgage
The Jumbo Reverse Mortgage Loan is designated for high-value homes, as determined by standard mortgage guidelines. This is also called a proprietary reverse mortgage. Before applying, a third-party interview is required to confirm the terms and conditions of a jumbo reverse mortgage loan.
HECM Loan
The Home Equity Conversion Mortgage (HECM) is insured by the FHA and is the most common type of reverse mortgage loan for properties that meet home value guidelines.
Most Common Questions
Will I need to sign over ownership of my home?
No. You will retain the title to your home as long as you meet the standard loan guidelines: maintain the property, pay property taxes, have homeowner’s insurance, pay HOA dues (if any), and avoid absences from your home longer than six months.
Will I need to keep making monthly mortgage payments?
No. You can choose whether to continue making mortgage payments. You are responsible for paying property taxes, homeowner’s insurance, HOA dues (if any), as well as maintaining the property.
Will I need to pay off my first mortgage before I can qualify?
No. You’ll need to have adequate equity to qualify for a reverse mortgage, but it’s not necessary to have your home paid off. Debt from your first mortgage will be paid off at closing, when the terms of your new reverse mortgage begin.
Will I be allowed to sell my home if I have a reverse mortgage?
Yes. You can sell your home at any time, and your reverse mortgage will operate like other home loans. You would pay off the reverse mortgage when the sale of the home closes. There are also no prepayment penalties.
Will my children be responsible for repaying my reverse mortgage?
No. A reverse mortgage is a non-recourse loan: the lender is only repaid from the proceeds of the final sale of the home, and not more than the home’s value. Even if your home decreases in value, the maximum repayment cannot be more than the value of the home when sold. They can also refinance the loan to purchase it for themselves.
With a Reverse Mortgage, will my children still have equity left after I’m gone?
Maybe. There are several factors that may impact your home’s equity, such as property appreciation, length of the loan and whether you make monthly payments. While the equity typically decreases, there can still be equity left for your children.
How the Application Process Works
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Step 2
Consultation with a 3rd Party
A meeting with a HUD-approved counseling agency is required, which can be done over the phone. You’ll receive two certificates (one for you and one for your mortgage expert).
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Step 3
Apply
We’ll begin the application process with you. We’ll gather mortgage statements, property tax payment history, credit history, and other financial documentation that may be required to process your loan.
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Step 4
HUD Assessment
HUD requires you to send all relevant documentation for review. This helps ensure long-term success for each applicant.
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Step 5
Property Appraisal
Reverse mortgages use a full FHA appraisal process. Your home value is based on recent sales for comparable properties in your neighborhood.
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Step 6
Processing & Underwriting
We’ll process your paperwork with all necessary parties to make sure everything is in order. Once finished, your completed file is forwarded to the underwriter for final review.
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Step 7
Your New Loan is Funded!
We’ll review the final loan terms and sign closing documents. You’ll then have 3 business days to cancel the loan if you choose. We’ll review any exceptions based on the final terms of your reverse mortgage loan.
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What People Are Saying
Shawn came highly recommended by a group of friends who all use him for their financing needs – this is the second time Shawn has helped me through the loan process. He is always thorough, responsive, detail-oriented, and, most importantly, he will get you a great rate.
Cindi R.
I couldn’t be more pleased to use Shawn Sidhu from C2 Financial Corporation for my home refinance. The whole process was smooth and easy. Shawn had a great online portal, and his level of communication and guidance was exceptional. I thoroughly recommend Shawn.
David A.
Shawn and his team did an amazing job making sure we closed our loan in record time! As a first time buyer, I did not feel any pressure throughout the process. Shawn took care of everything and made sure we closed with ease. I would strongly recommend Shawn.
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