Reverse Mortgages
Turn Your Home's Equity Into the Retirement You Deserve
You worked a lifetime to pay for your home. A reverse mortgage lets that home start working for you.
Get My Free Reverse Mortgage Consultation62+ & Eligible to Apply | No Monthly Payment Required | You Keep the Title to Your Home
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Reverse mortgages are one of the most misunderstood financial products in the mortgage world. I have seen them help families in ways that genuinely changed their lives. And I have seen people walk away from them out of fear based on things they heard that were simply not true.
So before we talk about rates, limits, or loan structures, I want to say something simple: You deserve to spend your retirement with dignity, security, and peace of mind. If your home can help make that possible, then it is worth understanding how.
That is the only reason I am going to walk you through every detail on this page. Not to sell you on anything. To make sure you have the information you need to make the right decision for you and your family.
If a reverse mortgage is the right fit, I will tell you. If it is not, I will tell you that too. That is how I do business. And that is how I bless people's lives financially.
What Is a Reverse Mortgage?
A reverse mortgage is a government-backed home loan available to homeowners aged 62 or older that allows you to convert a portion of your home equity into tax-free funds, without selling your home, giving up ownership, or making monthly mortgage payments.
The most widely used is the Home Equity Conversion Mortgage (HECM), insured by the FHA and regulated by HUD. There are also proprietary reverse mortgages for higher-value properties.
Here is the key concept: instead of you paying the lender each month, the lender pays you. The loan balance grows over time as interest accrues, and it is repaid when you sell the home, permanently move out, or pass away.
You keep full ownership of your home. Your name stays on the title. The bank does not own your house. Think of a reverse mortgage not as taking something away from your home, but as unlocking what your home has already earned for you over a lifetime.
How Much Can You Actually Access?
The amount you can borrow is called the Principal Limit. It is calculated using your age (older = higher limit), your home's appraised value (higher value = more equity), and current interest rates (lower rates = higher limit). The 2024 HECM lending limit is $1,149,825.
As a general guideline, most borrowers can access 40% to 65% of their home's appraised value. For California seniors with high-value homes above the FHA limit, proprietary jumbo reverse mortgages can access equity on homes valued up to $4 million or more.
Example: A 72-year-old with a $700,000 home and no existing mortgage might access approximately $320,000 to $420,000 through a HECM, depending on current rates. I will run your exact numbers in our free consultation.
Five Ways to Receive Your Money
One of the most powerful features is the flexibility in how you receive funds.
1. Lump Sum (Fixed-Rate HECMs only): Receive all available funds at once at closing. Best for paying off an existing mortgage or a large expense.
2. Tenure Payments: Equal monthly payments for as long as you live in the home. Functions like a private pension from your equity.
3. Term Payments: Equal monthly payments for a set number of years you choose. Higher amounts for a defined period.
4. Line of Credit (Most Popular): Access funds as needed, whenever you need them. Unused portion grows over time at the same rate as the loan—guaranteed growth. This is the option most financial planners recommend for strategic retirement planning.
5. Combination: Mix a partial lump sum, monthly payments, and a line of credit. The most customized approach.
Do You Qualify?
Reverse mortgages have fewer qualification hurdles than conventional loans. You must be 62 or older, use the home as your primary residence, have significant equity (generally 50%+), and demonstrate ability to pay property taxes and insurance. The home must meet FHA property standards.
Unlike conventional loans, there is no minimum credit score for a HECM. Lenders do conduct a financial assessment. If concerns arise, the lender may require a Life Expectancy Set-Aside (LESA) to cover future tax and insurance—a built-in protection for borrowers on fixed incomes.
HUD counseling is mandatory before application. You must complete a session with an independent HUD-approved housing counselor (typically $125–$175, about 90 minutes). I can help you find a counselor.
When Does the Loan Need to Be Repaid?
The reverse mortgage becomes due when you sell the home, permanently move out (e.g. assisted living for 12+ consecutive months), the last surviving borrower passes away, you fail to maintain the home as primary residence, or you fall behind on property taxes or insurance.
Your heirs typically have 6 months (with extensions up to 12) to sell, refinance, or pay off the balance. Any equity remaining after repayment goes to your heirs. If the loan balance exceeds the home value, FHA insurance covers the shortfall. Non-recourse protection: you or your heirs will never owe more than the home is worth. Your other assets are fully protected.
What Does a Reverse Mortgage Cost?
Reverse mortgages do have fees. Upfront: FHA Mortgage Insurance (2% of value/limit, can be financed), origination fee (capped by HUD, up to $6,000), appraisal ($500–$900), title/escrow ($1,500–$3,500), HUD counseling ($125–$175), and other closing costs. Ongoing: 0.5% annual MIP on the loan balance (added to balance, not out of pocket), plus your responsibility for property taxes, insurance, and maintenance.
Most upfront costs can be financed into the loan, so you can pay little or nothing out of pocket at closing. I will show you the exact cost breakdown for your situation in our consultation.
What About My Spouse Who Is Under 62?
If one spouse is 62+ and the other is younger, the younger can be a Non-Borrowing Spouse (NBS). Under HUD rules, an NBS has the right to remain in the home after the borrowing spouse passes away or moves out, as long as the home is their principal residence, they were married at closing, and they continue to pay taxes, insurance, and maintain the home.
The trade-off: the principal limit is calculated on the younger spouse's age, which can reduce the loan amount. I will run both scenarios so you can decide. Non-borrowing spouse rules have improved significantly in recent years.
Use a Reverse Mortgage to Buy a Home (HECM for Purchase)
A HECM for Purchase lets eligible borrowers 62+ buy a new primary residence using a down payment plus reverse mortgage proceeds—with no required monthly mortgage payments on the new home. You make a down payment (typically 40–60% of the purchase price, depending on age and rates); the reverse mortgage covers the remainder. Ideal for seniors downsizing, relocating, or preserving liquid assets.
Reverse Mortgage Myths vs. Reality
"The bank takes ownership." False. You retain full title. The lender has a lien, like any mortgage. Your name stays on the deed.
"My kids will inherit debt." False. HECMs are non-recourse. Heirs cannot inherit debt larger than the home's value. They can sell, refinance, or walk away with zero liability beyond the home.
"I will get kicked out." False. As long as you live in the home, maintain it, and keep taxes and insurance current, you cannot be forced out.
"I cannot get one if I still have a mortgage." False. You can. The existing mortgage must be paid off at closing—often using the reverse mortgage proceeds.
Is a Reverse Mortgage Right for You?
A strong fit if: You are 62+ and plan to stay long-term; you have substantial equity; you want to eliminate monthly mortgage payments; you need supplemental income or a safety net; you want to delay drawing down Social Security or investments; you want to fund home modifications to age in place.
Might not be the best fit if: You plan to move within 3–5 years; your primary goal is leaving full equity to heirs; you cannot afford property taxes, insurance, and maintenance; or you have other lower-cost sources of funds.
Knowing which side you fall on is exactly why the free consultation exists. I will tell you the truth, and we will find the right path together.
How the Process Works with Me
Step 1: Free Consultation — We talk; I give you a real estimate of what you could access and discuss alternatives. Step 2: HUD Counseling — You complete the required session and receive your certificate (valid 180 days). Step 3: Formal Application — I gather your documents (ID, deed, mortgage statement if any, tax/insurance proof, income docs, counseling certificate). Step 4: Home Appraisal — FHA-approved appraiser sets value and condition. Step 5: Underwriting — Lender approves your file. Step 6: Closing — You sign at title/escrow; 3-day right of rescission; then funds disburse per your chosen option.
From application to close, most reverse mortgages take 30 to 45 days. I will keep you informed every step of the way.
Why Families in Southern California Trust Me
I serve seniors like family. I understand these conversations can feel vulnerable. My job is to explain everything clearly, answer every question as many times as you need, and help you make the decision that is right for your situation.
I will always tell you the truth. If a reverse mortgage does not make sense, I will tell you. I have turned down transactions because the product was not a good fit.
I work with multiple programs. HECM and proprietary jumbo reverse mortgages from multiple lenders—I can shop your scenario and present the best option.
I welcome adult children into the conversation. I am happy to have a call with your son or daughter and address their concerns. Transparency with your family is always the right approach.
Reverse Mortgage FAQ
Does the bank own my home? No. You retain full ownership and title. The lender has a lien, like any mortgage.
What if the loan balance exceeds my home's value? HECMs are non-recourse. You or your heirs never owe more than the home's value at sale. FHA covers any shortfall.
Do I have to make monthly payments? No. You are responsible for property taxes, insurance, and maintenance—but no monthly loan payment.
Will it affect Social Security or Medicare? Proceeds are loan funds, not income, so they do not affect Social Security or Medicare. Medicaid/SSI can be affected by large liquid funds—consult a benefits counselor.
Is the money taxable? No. Reverse mortgage proceeds are loan advances, not income, so they are not subject to federal or California income tax.
Let's Have an Honest Conversation
If you are a Southern California homeowner 62 or older, or researching on behalf of a parent or loved one, you deserve complete, honest information—not a sales pitch. The consultation is free. There is no pressure. And I promise you will leave the call knowing more than when you started.
Book Your Free Reverse Mortgage ConsultationAlso explore: Conventional · FHA · DSCR · Self-Employed · Hard Money · Commercial