At one point in 2007, there were over 10 California reverse mortgages that were available for "jumbo-sized" loan amounts. Due generally to the decline in real estate values and the resultant banking commerce problems, now the number has dropped to three programs.
A jumbo reverse mortgage in California is typically used when the loan number exceeds 0,000 to 0,000. When the number of money needed by the senior applying for the loan is above those amounts, a jumbo loan is required because the Fha agenda (non-jumbo) has low loan limits. For most densely populated counties in California, Fha only recognizes the first 2,790 of home value, and ignores the rest, in calculating the number of money available to the senior homeowner.
There are hundreds of thousands of homes in California owned by seniors that could advantage from the jumbo program. Last year, those seniors had many options to select from. But now most large banks have pulled back their California reverse mortgage programs or cut them entirely. The largest lender in the business, Financial Freedom, is on the ropes as its parent company, Indy Mac Bank has been taken over by Federal Regulators due to its poor financial condition. Many California seniors do not want their loan to be with a failing financial institution, and are seeing for other alternatives.
Bank of America cut their California reverse mortgage agenda by suspending it as an contribution straight through their broker network, allowing it only to be offered by their sell branches. Financial free time took this same step too, which indicates that Bank of America's decision is a possible a sign of poor financial condition and an inability to continue to hold their California programs. One conjecture for these developments is that these and other lenders have suffered huge losses due to the subprime mortgages that they offered in our state. With mounting losses, these lenders find it increasingly difficult to borrow money at low rates and lend it out to consumers. As a result, they do not have ample funding to continue to hold the examine for home loans, and are forced to make difficult cuts in the programs that they offer.
Fortunately, there are still a consolidate jumbo California reverse mortgage programs that are offered by lenders who steered clear of the subprime mess. One of them offers a loan with competing interest rates and a line of reputation feature. This lender receives their funding from a European bank that is insulated from our domestic banking problems. an additional one California lender is providing a fixed rate jumbo program. Seniors will be able to sleep well at night with this product, knowing that their interest rate will not turn and they will make no payments for as long as they live in their home. This bank also did not make risky home loans and as a result, will be in firm for many years to come.
While the options for California seniors have diminished, there are still some viable lenders. Seniors can move transmit confidently with these loans and enjoy a financially accumulate retirement.
California Reverse Mortgage Jumbo Loans Becoming Scarce