We were going to list all lenders in California ourselves, but we found that there were far too many for us to gather with our staff size. SO – we are letting all companies list themselves by leaving their bank’s information in the comment section at the bottom of the page. We will then create a special page with your lending institution information, AND leave your comment on this page. This way you are getting an amazing deal – TWO free listing that will ensure extra borrowers going to your web site, calling you, or simply walking in the front door of your main entrance.

If you manage your community bank in any of the other areas near Concord, please let us know. Here is short list of communities, towns, and cities near Concord to consider;

• Pacheco
• San Vicente
• Sun Terrace
• Concord Park
• Canterbury Village
• Clayton
• Pleasant Hill
• Clyde
• Ohmer
• Colony Park
• Waldon
• Martinez
• Walnut Creek
• Lafayette
• Pittsburg
• Mountain View
• Vine Hill

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Case Study 1: Reverse Jumbo Mortgage in San Francisco California

Dennis Altman of San Francisco was just over the age limit for approval of a reverse mortgage, and his property value was approximately $1,000,000. He was 71 years old (you have to be over 62 years old to be approved for a reverse mortgage). Dennis had to get two appraisals carried out on his property. This is often the case when jumbo reverse mortgages are considered by banks and private lenders. If Dennis had chosen an HECM mortgage he would have received $212,085 dollars, and if was approved for a jumbo reverse mortgage he would receive $360,223. So which jumbo do you think he negotiated? The latter one of course for well over $300,000 dollars, which he took in monthly payments instead of a lump sum. You can choose either payment method when you negotiate a reverse jumbo.

As always, remember that the reverse jumbo mortgage lender has first lien (usually the only lien) on the property when it sells. The bank gets all their money back after the elderly home owner passed away. It’s simple trade-off actually – a better lifestyle in your golden years for the equity you have built up throughout your life. I remember seeing some of the first reverse mortgage ads on T.V. about 20 years ago, and you are likely familiar with Robert Wagner’s ad for reverse mortgages on T.V. Some would say that it’s a sleazy deal, and that the lenders and banks are taking advantage of the elderly person’s vulnerability. There is another way to look at though – why not enjoy the years you have left, and let the kids look after themselves. I agree with the latter.

So Dennis Altman got his reverse jumbo and lived in great comfort for his remaining years. When he finally passed away (died at 82 years of age and in his sleep) he still left over half of the equity in his house to his children all still reside in California.

Case Study 2: Reverse Jumbo Mortgage in Los Angeles California

Charles Henderson wanted a reverse mortgage, but it was hardly a jumbo by any stretch of the imagination. His house only needed one appraisal and property was given the blessing of being worth $200,000 at fair market rates. Charles was 73, and he had always had a clean record with his bank. It was a no-brainer for him to go with a standard HECM reverse mortgage for a total of $119,849 in funded payments. If he had tried to get his reverse mortgage at jumbo rates, he would only have received $72,738 in cash.

So Charles got his reverse jumbo mortgage in 2008 and is still collecting on it today. He received monthly payments and will do so for the next how many years he is still alive. He travels more and he has been able to help his children and grand children with his money. When he passes away he may not have a cent left of inheritance to his children, but he has decided to help them now instead of later.

Just like Dennis from the first case study, all of Charles’ children live in California. They are spread out from the north to south of the state. Sacramento, San Diego, Los Angeles, Bakersfield, Long Beach, Riverside, and Fresno are just some of the areas his children now raise their families. Charles has 9 kids.

When Applying for a Reverse Jumbo Mortgage California – Some Facts

If you are applying for a reverse jumbo mortgage, you may want to understand some of the facts involved in doing so. The following are some facts on reverse mortgage applications and jumbo reverse applications.

The HUD (FHA) Reverse Jumbo Mortgage Application Process – Cert of Counseling

In both examples above, these California residents had to receive a certificate of counseling from an approved HUD counselor. This HUD counselor must give a 1 hour (required at least forty five minutes) training session on the financial ramifications of the mortgage. They have to make sure the elderly person fully understands the legalities of a reverse mortgage. It doesn’t matter if the applicant is applying for a reverse jumbo or a standard reverse mortgage, the same rules apply. This is law to protect the elderly from predators who may wish to take advantage of their age or lack of knowledge.

When a Reverse Mortgage in California is Done

In lenders and banks in California are the same as the banks in any other state when it comes to the laws governing standard and jumbo reverse mortgages. There only two situations when a reverse mortgage is finished and the final tally is made:

• When the borrower has passed away: when the borrower dies, the property is sold and the first installment of the proceeds goes to the lender. All interest is calculated and paid at the time of sale. This of course means the owner does not have to pay any interest on the loan while alive – only makes sense right.
• When the borrower sells and moves to a new location: when the borrower sells their property and moves into a old folks home, or into an assisted living home, the proceeds from the sell of their property go first to pay back the lender. As the first example, all interest on the loan is paid at this time.

What Does the IRS Have to Say About Reverse Mortgages? Taxes.

As far as the IRS is concerned recipients of reverse mortgage payments may be taxed slightly on an annuity style pay out. For standard lump sum payments from the lender to the bank there is no taxes involved. any interest that the borrower pays is dealt with at the end of the loan. Furthermore, the mortgage insurance money that is moved is completely tax deductible.

The NRMLA and Reverse Mortgage Practices in California

The NRMLA (National Reverse Mortgage Lenders Association) was founded in 1997. This is a new thing folks. The NRMLA provides data on reverse mortgages nationwide and of course California. Headquartered in Washington D.C., the NRMLA conducts conferences and supports lobbying groups who support their agenda.

Reverse Mortgage Terminology

Reverse mortgages go by a few different names. You may have heard those in the banking and lending field describe a reverse mortgage as “Equity Release” or “Lifetime Mortgage”. No matter what you call it, it’s all the same thing. All the normal rules of law apply for and equity release, lifetime mortgage, or a reverse mortgage. Jumbo reverse mortgages are as above, and in California, these terms apply of course.

Calculating Your Reverse Jumbo Mortgage

You can calculate your jumbo reverse mortgage by using the HUD website. Go Home Equity Conversion Mortgage Payment Calculation Formula page on the HUD site.

In Concluclusion for Senior Citizens Owning Property in California

A jumbo reverse mortgage requires that you have 2 qualified appraisals of your property or real estate holdings, and you must complete the HUD counseling process as described earlier in this piece. Outside of these three tasks, you should be good to go an apply for your jumbo reverse mortgage. There are some hefty initial fees that banks charge for your reverse mortgage, but that is made up for in the low interest charged for your term – when you pass or move. Discuss all of this information with a trusted friend or family member who has some knowledge in the area of lifetime loans and jumbo reverse mortgage approval. Make sure to read the HUD web site for even more information before you even make an appointment with the lender(s) in the state of California.

Your choices for lenders and banks in California are limited these days if you have to go with and LTV of even 75%, let alone 80%-90%. Unless you have a perfect FICO score and you have other significant assets you can out on the line, your choices are dismal to say the least. Have I depressed you yet? Don’t worry – it can be done.

In this article I attempt to list all of the banks and lenders that look at mortgage loans that are over the 80% LTV threshold. Whether you live in Fresco, Los Angeles, San Francisco, Palm Springs, San Diego or in between, your interest rates are going to be VERY close to the same. That goes for the difference between banks in California as well.

I have a friend who got a loan at an LTV of 85% and he had a FICO score of just 700. I think his FICO was actually a little lower – but I digress. Let us get to it. He did get his loan eventually and this was in the first week of November 2008, after the ugly credit crunch began. The month of Obama my friend. He was approved with Montecito Bank & Trust. Keep in mind that this loan he got was through his business. Different than just getting a personal mortgage with a high LTV between 80% and 90%. Don’t want to waste your time here so I want to make that clear.

To be honest, Montecito may very well provide basic consumer and personal mortgage funding, but you will have to give one of their branches a call. Here are their branch phone numbers:

• Santa Barbara/(805) 564-0255
• Montecito/(805) 564-0240
• Carpinteria/(805) 684-0487
• Goleta/(805) 564-0267
• La Cumbre/(805) 564-0271
• Westlake Village/(805) 778-0611
• Ventura/ (805) 676-1125
• Solvang/(805) 686-8602

Montecito has branch locations in eight in different locations – Santa Barbara, Montecito, Carpinteria, Goleta, La Cumbre, Westlake Village, Ventura, and Solvang. Their branch hours are the same with the exception of Ventura – the Ventura office is open Monday – Friday, 9 a.m. – 5 p.m. The rest of the branches are as follows:

Montecito Branch Hours:

Drive-Up Hours:

Monday – Friday – 8:00 a.m. – 6:00 p.m.
Saturday – 9:00 a.m. – 1:00 p.m.

Walk-Up Hours:

Monday – Friday – 8:00 a.m. – 9:00 a.m.
Monday – Thursday – 4:00 p.m. – 6:00 p.m.
Saturday – 9:00 a.m. – 1:00 p.m.

Lobby Hours:
Monday – Thursday – 9:00 a.m. – 4:00 p.m.
Friday – 9:00 a.m. – 6:00 p.m

In closing, you really want to get your LTV level down as low as possible before even considering shopping for a mortgage. The banks these days are really tightening up their lending policies so finding your funding may be difficult enough. California has a healthy helping of different banking institutions, so you may be in for a really hunt.