Reverse mortgage loans can sometimes be confusing, says one Santa Clarita reverse mortgage specialist.
“There can be confusion surrounding a reverse mortgage,” says Steve Schaefer, a Santa Clarita reverse mortgage specialist and mortgage professional at American Family Funding. “The biggest misconception is that these are last resort loans, when in reality, many of the families I work with find them to be hugely beneficial when used correctly and at the right time.”
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For those of you who are curious about the reverse mortgage process, here’s a simple 3-step guide to understanding the process.
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Analyze the Benefits of a Reverse Mortgage
First and foremost, Schaefer explains, you need to be sure a reverse mortgage is right for you. This requires an analysis of your financial situation to ensure you fit within guidelines and will benefit from the program.
“I ask some questions and do a personalized reverse mortgage analysis for you,” Schaefer says of his own process with clients. “Once we complete that, I take some additional information on your income, your financial obligations, and other living expenses, and we do a Financial Assessment.”
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Complete Independent HUD Approved HECM Counseling
Next, you’ll need to complete a counseling session to demonstrate your understanding of a reverse mortgage. There are HUD Approved reverse mortgage counseling agencies that provide independent third party counseling to you for a standard fee, generally $150 for a 90-minute session. Counseling can be done in person or by telephone.
Reverse mortgages are also known as Home Equity Conversion Mortgages (HECM). You can go to the HUD website, www.hud.gov, or call (800) 569-4287 to find a HECM Counselor near you. As a convenience to clients, Schaefer includes a list of HUD Approved Counselors with the reverse mortgage analysis.
When you complete counseling, you receive a HECM Counseling Certificate and a California Addendum form if the counseling was done by telephone. These certificates are good for six months.
“Upon completion in California, we have to wait seven days,” explains Schaefer. “It’s called a ‘cooling off’ period and gives people additional time to consider their options.”
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Complete Your Application
After the seven day “cooling off” period, you submit a copy of your HECM Counseling Certificate (and the California Addendum, if necessary) to a reverse mortgage professional and request a reverse mortgage loan application. Schaefer doesn’t recommend trying to fill out the application on your own.
“I will draw up an application for you and then guide you through the process,” says the Santa Clarita reverse mortgage specialist, “but to get started, I provide a free reverse mortgage analysis to see if it fits your needs.”
American Family Funding a Division of American Pacific Mortgage Corporation NMLS #1850
Stephen Schaefer NMLS #950999 — Licensed By the Department of Business Oversight Under the California Residential Mortgage Lending Act.
Ed. Note: This article is a KHTS Community Spotlight based on a recent interview with Santa Clarita home loan lender, American Family Funding.
Santa Clarita reverse mortgage lender American Family Funding can help you fulfill your dream of home ownership. A highly rated Santa Clarita mortgages lender, American Family Funding maintains a focus on community involvement and a commitment to giving back whenever possible. A friendly mortgage advisor will make the first time homebuyer experience an easy and stress-free experience — even with bad credit or a low down payment. The Santa Clarita home loan officers at American Family Funding also specialize in VA loans, reverse mortgages, refinancing and the STAR Loan Program.
28368 Constellation Road
Suite 398
Valencia, CA 91355
(661) 284-1150
info@affloans.com
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