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Mailing Address

VITEK Mortgage Group
Corporate Office

3 Parkcenter Drive
2nd Floor
Sacramento, Ca 95825
Toll Free: (800) 570-5300

Language of your Mortgage Loan Originator:

Customer Login - Coming soon!

You will be able to log in for up-to-the-minute updates on your loan in process and easily submit needed documentation to us to help ensure a faster transaction for you. This new state-of- the-art communication system will also support our efforts toward complete paperless transactions and helps us further our Think Green initiatives!

Common Questions

Frequently Asked Questions

The information in this website is not from HUD or FHA and was not approved by HUD or a government agency.

What is a reverse mortgage and how does it work?

A reverse mortgage is a loan that enables homeowners 62 years of age and older to tap into some of the equity they have accumulated in their home and convert it into tax-free cash. A Home Equity Conversion Mortgage (HECM) is safe and secure because it is insured by the federal government through the U.S. Department of Housing and Urban Development (HUD/FHA). A reverse mortgage allows you to:

  • Eliminate monthly mortgage payments
  • Continue to own and maintain full control of your home
  • Protect against owing more than the value of your home
  • Keep all remaining equity
  • Get qualified - we'll provide you a thorough financial assessment
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What are the benefits of a reverse mortgage?

  • Eliminate your mortgage payments while paying off your existing mortgage
  • Receive tax-free money by converting the equity in your home into cash
  • Continue to live in your own home while maintaining ownership
  • Once you are qualified, there are minimal restrictions on how you can use the money. For example, there are certain restrictions on purchasing annuities or other financial products.
  • You or your heirs keep all remaining equity after the loan is paid off
  • You or your heirs will never owe more than the home is worth
  • You cannot lose your home under normal circumstances, but please understand foreclosure may occur if you do not pay your taxes and insurance and otherwise comply with the loan terms
  • Does not affect Social Security or Medicare benefits
  • Government insured
  • No pre-payment penalty means you may repay the loan at anytime
  • Flexible payment options allow you to receive your money in various ways
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How do I qualify?

  • All borrowers must be 62 years of age or older
  • The home must be your primary residence
  • There must be sufficient equity in your home
  • Your home must be one of the following:
    • Single-family residence
    • One to four family unit dwelling
    • Planned unit development
    • HUD-approved condominium
  • Your home must meet HUD's minimum property condition standards (you can use the reverse mortgage to pay for necessary repairs that may be required).
  • Receive counseling from a HUD-approved counseling agency. Click here to contact us for a list of approved agencies.
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How do I receive my money?

You can receive your money in any of the ways listed below, or a combination of these:

  • Line of Credit - to be drawn from when you want
  • Lump Sum - all at once
  • Tenure - receive monthly payments (Lender will set aside a specific amount of money for a line of credit, and borrower may outlive the monthly payment stream. Borrower must maintain home as pricipal residence.)
  • Term - for a specific time period pre-determined by you
  • Combination - select a combination of the above options
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How much cash can I receive from the equity in my home?

The amount depends on three factors:

  1. The age of the youngest borrower
  2. The current value of your home, the sales price if you are purchasing a home, or the FHA maximum lending limit, whichever is lower
  3. The current 'expected' interest rate

These three factors determine your cash equity benefit (the gross amount of money available). The actual net cash available is then determined by deducting any existing mortgages and deducting the closing costs of the reverse mortgage.

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Are there any restrictions on how I use my money?

No! You can use the money any way you desire - it's your money!

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What are the most common reasons seniors get a reverse mortgage?

There are an infinite number of ways seniors utilize the proceeds from a reverse mortgage, ranging from practical to fun. Here are just some of them:

  • Eliminate monthly mortgage payments
  • Home repairs or home remodel
  • Pay for in-home health care
  • Pay for medical bills or pay for prescription medications
  • Payoff credit cards or other debts
  • Cover daily living expenses
  • Travel
  • Help their children buy a home or assist other family members
  • Assist grandchildren with their college education
  • Purchase items you have always wanted or needed
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If no monthly payments are required, how is the reverse mortgage paid back?

The loan is due and payable when the borrower sells the home, permanently leaves the home (12 months or more), or all parties on the title at time of loan origination have passed away.

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What if I want to leave the home to my children?

It is your home, so you can leave it to your children or to anyone you choose. However, the loan is not assumable (it can't be taken over by someone else). Your heirs can pay off the loan any number of ways including selling the home. If they wish to keep the home, they would need to refinance it and pay off the reverse mortgage loan in full.

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What if I owe more than my home is worth?

Reverse mortgages are "non-recourse," which means the lender cannot collect more money than the home is worth, regardless of how much is owed and they cannot seek other assets to pay for the debt. This is an excellent protection for you. If the heirs wish to keep the home then the lender is entitled to all that is owed including interest and closing costs.

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Can I hold title in a Living Trust?

Yes, the trust must meet HUD guidelines and be approved by the lender. If you would like to confirm your trust is acceptable for a reverse mortgage, you can click here to contact us and we can review it for you FREE of charge.

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What do the experts say about this program?

Many financial advisors and senior advocates, including the National Council on Aging, suggest that a reverse mortgage can be a smart way to secure your financial future during retirement. Visit our senior resources page to see what other senior advocacy organizations are saying.

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Are there costs associated with a reverse mortgage?

As with any loan, there are closing costs associated with obtaining a reverse mortgage. Standard costs include: the lender loan origination fee, HUD required counseling, FHA mortgage insurance, and 3rd party fees such as title, escrow, and appraisal.

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Will I have to pay taxes on the money I receive?

The IRS does not consider proceeds from a reverse mortgage to be taxable income. They are considered loan advances on your equity and are not taxed. (We recommend consulting a tax professional.)

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Is the interest charged on the loan tax deductible?

The interest is deductible at the time the loan is paid in full. (We recommend consulting a tax professional.)

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Will a reverse mortgage affect my Social Security or Medicare benefits?

Payments you receive do not affect your Social Security or Medicare benefits. However, in the Federal Supplemental Security Income Program there are specific requirements for certain programs such as Medicaid. Therefore, we suggest that you consult a benefits specialist in your area to determine if you would be affected.

Interested in VITEK's Reverse Mortgage Programs?
Click here to request information!
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