Reverse Mortgages
Turn home equity into flexibility — with the downsides explained first
A reverse mortgage can eliminate a monthly mortgage payment or create retirement income for homeowners 62 and older. It is not right for everyone, and I will tell you plainly when it isn't.
How it works
The basics, in plain language
A Home Equity Conversion Mortgage (HECM) is a federally insured loan that converts part of your home equity into cash. Instead of you paying the lender each month, the loan balance grows over time and is repaid when you sell, move out permanently, or pass away.
Potential benefits
- Eliminate your required monthly mortgage payment.
- Receive funds as a lump sum, monthly income, a line of credit, or a combination.
- The unused line of credit can grow over time.
- Proceeds are generally not taxable income.
- Non-recourse: you or your heirs never owe more than the home is worth.
- Stay in the home you know, near the people and routines you value.
Real trade-offs
- Your loan balance grows and your equity shrinks over time.
- Upfront and ongoing mortgage insurance premiums add cost.
- You remain responsible for property taxes, insurance and upkeep.
- It can reduce what you leave to heirs.
- Needs-based benefits such as Medicaid may be affected depending on how funds are held.
- If you plan to move within a few years, the upfront costs rarely make sense.
Eligibility
Who typically qualifies
- At least one borrower is 62 or older.
- The home is your primary residence.
- You have significant equity — often 50% or more.
- Property taxes, insurance and any HOA dues are current.
- The home meets FHA property standards.
- You complete HUD-approved counseling.
Questions
Reverse mortgage FAQs
Do I still own my home?+
Yes. You remain on title. The lender places a lien, exactly as with a traditional mortgage. You keep the right to live there as long as the loan terms are met.
What are my ongoing obligations?+
You must keep the home as your primary residence, stay current on property taxes and homeowners insurance, and maintain the property. Falling behind on those can trigger repayment.
Can I leave the home to my children?+
Yes. When the last borrower permanently leaves the home, heirs can repay the loan balance and keep the property, or sell it and keep any remaining equity. HECM loans are non-recourse, so heirs never owe more than the home's value.
How much can I receive?+
It depends on the youngest borrower's age, current interest rates, and your home's appraised value. Older borrowers with more equity qualify for more.
Is counseling required?+
Yes. HUD requires independent counseling from an approved agency before a HECM application can proceed. That protection exists for your benefit, and I encourage it.
Service area
Where I work
Serving Fontana, Rancho Cucamonga, the Inland Empire, and surrounding communities.
- Fontana, CA
- Rancho Cucamonga, CA
- Ontario, CA
- Upland, CA
- Rialto, CA
- Chino, CA
- Chino Hills, CA
- Claremont, CA
- Corona, CA
- Riverside, CA
- San Bernardino, CA
- Redlands, CA
- Eastvale, CA
- Yucaipa, CA
Office at 9431 Haven Ave, Rancho Cucamonga, CA 91730. Don't see your city? Call (909) 910-2634 — I lend throughout California.