Reverse mortgage loans are a popular financing option in Santa Cruz, California, allowing senior homeowners to tap into their home’s equity.
The most popular type of reverse mortgage is the 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 Santa Cruz, 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 having more fun in 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:
Home Equity Access
A reverse mortgage loan allows homeowners to tap into their home’s equity without selling the property. This can be especially advantageous in Santa Cruz, where home values have historically appreciated, providing substantial equity for long-time residents.
Supplemental Retirement Cash Flow
A reverse mortgage can provide a steady stream of tax-free cash flow, allowing homeowners to supplement their retirement funds or other income sources.* This can help maintain a comfortable lifestyle in a city like Santa Cruz, which has a relatively high cost of living.
The proceeds from a reverse mortgage are considered loan proceeds, not income. As a result, these funds are tax-free.*
Reverse mortgages offer various payment options, such as a lump sum, monthly payments or a line of credit. Homeowners can choose the option that best suits their financial needs and goals, giving them more control over their finances.
Aging In Place
A reverse mortgage enables homeowners to remain in their homes as they age, maintaining their independence and connection to their community. This can be particularly important in Santa Cruz, which offers a high quality of life with its scenic beauty, cultural attractions and mild climate.
Reverse mortgages are non-recourse loans, meaning that the borrower’s estate will never owe more than the home’s value when the loan becomes due, protecting homeowners and their heirs from being responsible for any shortfall if the home’s value declines.** This non-recourse feature can provide peace of mind for those living in Santa Cruz’s dynamic real estate market.
Reverse Mortgage Eligibility in Santa Cruz
To qualify for a reverse mortgage in Santa Cruz:
About Santa Cruz, California
Santa Cruz is a beautiful California coastal city known for its stunning beaches, redwood forests and laid-back lifestyle. It’s home to the iconic Santa Cruz Beach Boardwalk, a historic amusement park featuring thrilling rides, games and attractions. The boardwalk overlooks the Pacific Ocean and offers breathtaking views of the coastline. Santa Cruz is also a popular destination for surfing, with several world-renowned surf spots such as Pleasure Point and Steamer Lane.
The city has a vibrant arts and culture scene, with numerous galleries, theaters and music venues. Explore the Natural Bridges State Beach, home to a natural arch formed by the ocean, or hike through the nearby redwood forests. Santa Cruz is a unique and charming city that offers something for everyone, making it a must-visit destination on the California coast and a great place to spend your golden years.
Fun Facts about Santa Cruz
- It’s home to the Santa Cruz Beach Boardwalk, the oldest amusement park in California, and has been operating since 1907
- The city is known for its surfing culture and has been dubbed the “Surf City” of California
Santa Cruz is home to the University of California, Santa Cruz, known for its unique campus design and scenic views of the Monterey Bay
- The Mystery Spot, located in the nearby Santa Cruz Mountains, is a popular tourist attraction that features a gravity-defying house and other optical illusions
- The Santa Cruz Wharf is a popular spot for fishing, dining and sea lion watching
- The nearby Natural Bridges State Beach is home to a natural rock formation that serves as a sanctuary for monarch butterflies during their migration
- The Santa Cruz Mountains are known for their vineyards and wineries, producing award-winning wines
Interested in a Reverse Mortgage in Santa Cruz?
Fill out the form and one of our reverse mortgage loan specialists will be in touch!
*This advertisement does not constitute tax or financial advice. Please consult a tax and/or financial advisor regarding your specific situation.**There are some circumstances that will cause the loan to mature and the balance to become due and payable. Borrower is still responsible for paying property taxes and insurance and maintaining the home. Credit subject to age, property and some limited debt qualifications. Program rates, fees, terms and conditions are not available in all states and subject to change.