California Converse Mortgage Cash Advances Unlocks House Equity For Seniors

Converse mortgages are becoming extremely popular with seniors in California since the U.S. Department of Housing and Urban Development (HUD) created one of the first.

A California converse house mortgage allows older Americans to supplement social security, meet unexpected medical expenses, make house improvements, and more.

A converse mortgage allows the houseowner to convert a portion of the house equity into cash. Unlike a traditional house equity cash advance (HELOC) or second mortgage, repayment is not required until the borrower no longer uses the house as a principal residence.

To be eligible the borrower must be at least 62 years old; own the house and have a low mortgage balance that can be paid off at closing with proceeds from the California converse mortgage cash advance, and must live in the house.
With a traditional second mortgage cash advance, or a California house equity line of credit (HELOC), there must be sufficient income versus debt ratio to qualify for the cash advance, and monthly mortgage payments are required.

The California converse mortgage cash advance is different in that it pays the houseowner, and is available regardless of current income.

The converse mortgage cash advance amount depends on borrower's age, current interest rate, other cash advance fees, and the appraisal value. 

The cash advance is not repayable as long as one of the borrowers continues to live in the house and keeps the taxes and insurance current.

If the house is sold or no longer used as a primary residence, the houseowner or the estate repays the converse mortgage, plus interest and other fees, to the converse mortgage lender.

The remaining house equity belongs to houseowner or heirs. No other assets will be affected by a California converse mortgage cash advance and the debt will never be passed along to the estate or heirs.