Reverse mortgage loans are a popular financing option in Bakersfield, California, allowing senior homeowners to tap into their home’s equity.
The most popular type of reverse mortgage is the Federal Housing Authority (FHA)-insured Home Equity Conversion Mortgage (HECM) loan. Unless noted otherwise, we’re referring to HECMs when discussing reverse mortgages.
How Does a Reverse Mortgage Work?
Reverse mortgage loans allow homeowners 62+ to access a portion of their home equity without having to make monthly mortgage payments, so long as the borrower takes care of property charges, like insurance, taxes and upkeep.
Reverse mortgages are a great option for seniors in Bakersfield, California, who want to stay in their homes, but also want or need additional cash flow. The funds from a reverse mortgage can be used for any purpose, including home improvements, medical expenses or a more enjoyable retirement.
Reverse mortgages are available to homeowners age 62 and older who own their home outright or have a low mortgage balance that can be paid off at closing with proceeds from the reverse mortgage loan.
Reverse Mortgage Loan Benefits
People get reverse mortgages for many reasons, including:
No Monthly Mortgage Payments
With a reverse mortgage loan, borrowers are not required to make monthly mortgage payments as long as they continue to live in the home, maintain it and pay property taxes and insurance. Optional monthly payments can provide significant financial relief for seniors on a fixed income.
Reverse mortgage borrowers retain ownership of their homes. Seniors can continue to live in them for as long as they meet the loan requirements, allowing them to age in place surrounded by familiar surroundings and close to their community.
The proceeds from a reverse mortgage are typically tax-free, as they are considered loan advances and not income. This can be advantageous for seniors looking to maximize their retirement funds without increasing their tax liabilities.**
Supplement Retirement Cash Flow
A reverse mortgage loan allows homeowners aged 62 and older to access their home equity without selling it, creating an important source of supplementary cash flow for seniors on a fixed income, helping to cover living expenses, medical bills or other financial needs.
Flexible Payment Options
Reverse mortgages offer multiple disbursement options, such as a lump sum, monthly payments, a line of credit or a combination of these options, allowing borrowers to choose the payment method that best suits their needs and preferences.
Reverse mortgages in Bakersfield, CA, are non-recourse loans, meaning that if the loan balance exceeds the home’s value when it’s sold or the borrower passes away, neither the borrower nor their heirs are responsible for the difference. The loan is insured by the Federal Housing Administration (FHA), which covers any shortfall between the home’s value and the loan balance.
Reverse Mortgage Eligibility in Bakersfield, CA
About Bakersfield, California
Bakersfield is a city in southern California known for its rich agricultural history and oil production. It’s the ninth-largest city in California, with over 380,000 people. The San Joaquin Valley and the Sierra Nevada Mountains surround the city, providing a beautiful backdrop for its residents and visitors.
Bakersfield has a diverse economy with healthcare, education, and aerospace industries, making it an attractive destination for job seekers. The city also offers a variety of recreational activities, including hiking, biking and water sports, as well as cultural attractions such as museums and theaters. Bakersfield is a vibrant and growing city with something for everyone, including retirees.
Fun Facts about Bakersfield
- Bakersfield is known as the “Country Music Capital of the West Coast” and has produced many famous country music stars, including Merle Haggard and Buck Owens
- It’s located in Kern County, the largest oil-producing county in the United States
Bakersfield is home to the world’s largest collection of Basque restaurants outside of Spain
The city has a rich agricultural history and is known for producing almonds, citrus fruits and grapes
- Bakersfield is the birthplace of the “Bakersfield Sound,” a subgenre of country music that emerged in the 1950s and 1960s
- The city has a robust Hispanic community and celebrates its culture with events such as the annual Cinco de Mayo festival
- Bakersfield is located near several national parks, including Sequoia National Park, Yosemite National Park and Death Valley National Park
- The city is home to the Bakersfield Condors, a minor league hockey team that plays in the American Hockey League
- Bakersfield has a unique climate, with hot summers and mild winters, making it an ideal location for outdoor activities year-round
- The city has a rich history dating back to the mid-19th century and was founded as a small mining town
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*This advertisement does not constitute tax or financial advice. Please consult a tax and/or financial advisor regarding your specific situation.