Find the Best Reverse Mortgage Lenders in San Diego, CA

How to get a reverse mortgage in San Diego

Seniors who are ready to retire and are concerned about having sufficient savings and income to do so might consider a reverse mortgage to help with the high costs of living in San Diego. According to the Insight Center for Community Economic Development, the cost of living for a single senior homeowner living alone in San Diego is $34,161 per year. In San Diego, one in six seniors is financially responsible for a grandchild, and a reverse mortgage might be able to help with the costs.

Slightly over 50 percent of San Diego residents are homeowners, but for seniors, the percentage living in homes they own is higher, at 75 percent. Thirty-seven percent of senior homeowners have a mortgage. San Diego neighborhoods and suburbs with the most residents 65 or older are Oceanside, Carlsbad, Escondido, Kearny Mesa and Mid-City.

Since seniors represent the highest percentage of homeowners per age group, they can benefit from the recent increases in home equity across the nation. Rising prices mean that homeowners become “equity rich” when their homes increase to values that exceed the amount of the mortgage, as long as they are up to date on payments.

California coastal communities, like San Diego, have seen the most substantial increases in average home equity. Seniors in San Diego who would like to invest in a second home might choose to get a reverse mortgage on their primary residence to finance the purchase.

The following are requirements to qualify for a reverse mortgage in San Diego:

• Borrower must be 62 years of age or older.
• Borrower’s mortgage must be paid off, or have a very small balance remaining.
• The home must be the borrower’s primary residence.
• Home must be in good condition and meet FHA minimum property standards and flood requirements.
• Borrower must be able to pay for homeowners insurance, property taxes, applicable HOA fees and maintenance.
• Most single-family homes, two-to-four unit owner-occupied dwellings, townhouses, approved condos or manufactured homes qualify.

California law allows only one type of reverse mortgage loan: an FHA-insured Home Equity Conversion Mortgage (HECM). Private or proprietary reverse mortgages are not available in the state. The law also requires all lenders to provide a list of non-profit counselors to those taking out a reverse mortgage, and the application cannot be finalized without acknowledgment of such counseling.

The California Department of Real Estate provides more information for those considering a reverse mortgage in San Diego.