California homeowners 55+ can convert their home equity into cash — while keeping title, staying in their home, and never making a mandatory mortgage payment again.
See how much equity you could access. Takes 60 seconds.
By submitting, you agree to receive a call from our licensed specialist. Your information is private and secure. Privacy Policy.
A reverse mortgage — formally known as a Home Equity Conversion Mortgage (HECM) — is a federally insured loan available to homeowners 62 or older (55+ for Jumbo/Proprietary products) that allows you to convert a portion of your home equity into tax-free funds.
Unlike a traditional mortgage where you make payments to the lender, with a reverse mortgage the lender pays you. There are no mandatory monthly mortgage payments as long as you live in the home as your primary residence, maintain it, and keep up with property taxes and homeowner's insurance.
You retain full ownership and title to your home. The loan becomes due only when the last borrower permanently moves out, sells, or passes away — at which point the home can be sold to repay the balance, with any remaining equity going to you or your heirs.
You must have sufficient equity. The older you are and the higher your home value, the more you can typically access.
The reverse mortgage is recorded against the property as a first lien. Any existing mortgage is paid off at closing.
Choose a lump sum, monthly payments, a growing line of credit, or any combination. Funds are generally tax-free.
You continue living in the home. Interest accrues and is added to the loan balance over time.
You or your heirs repay the loan (typically by selling the home). Remaining equity is yours. FHA insures any shortfall.
Adjust the sliders below for a real-time estimate. For an exact figure based on your home's value, call us.
* Estimates are illustrative only. Actual Principal Limit determined by HUD guidelines, your age, and current Expected Interest Rate. Consult a licensed specialist for a personalized analysis.
Estimated Net Proceeds Available To You
We specialize in every type of reverse mortgage available to California homeowners.
The most popular reverse mortgage, insured by the FHA. Available to homeowners 62+ on primary residences up to $1,249,125 in value. Choose lump sum, line of credit, monthly payments, or a combination.
Keep your existing first mortgage rate while accessing a portion of your equity as a standalone second lien. Ideal when your first mortgage carries a historically low rate you don't want to lose.
Unlock equity in high-value California homes up to $4 million or more. Available to homeowners 55+ on properties exceeding the FHA loan limit — not government-insured, but no mortgage insurance premium required.
Buy your dream retirement home using a reverse mortgage — with no mandatory monthly mortgage payments on the new property. Downsize, upsize, or relocate closer to family without draining your savings.
The most flexible option — access funds only when needed, and the unused portion of your line grows over time regardless of home value. Many financial planners recommend this as a retirement income buffer strategy.
Already have a reverse mortgage? Refinancing may unlock additional proceeds as your home value grows or interest rates change. We review your existing loan at no charge to see if a refinance makes sense.
Decades of misinformation have left many California homeowners confused about reverse mortgages. Here's the truth about the most common misconceptions.
FACT: You retain full title and ownership. The lender never owns your home. The reverse mortgage is simply a lien, just like a traditional mortgage. You can sell at any time and keep all remaining equity after repaying the loan balance.
FACT: HECM loans are "non-recourse." If the loan balance ever exceeds the home's value (an underwater scenario), the FHA insurance fund covers the difference. Heirs are never personally liable beyond the home itself.
FACT: You can qualify even with an existing mortgage balance. Your existing mortgage is simply paid off from the reverse mortgage proceeds at closing. Many borrowers eliminate their monthly mortgage payment entirely in the process.
FACT: Financial planners, academics, and the National Reverse Mortgage Lenders Association increasingly recommend reverse mortgages as a proactive retirement planning tool — not a last resort — for managing sequence-of-returns risk and extending portfolio longevity.
FACT: Reverse mortgage proceeds are loan advances, not income, and are generally not taxable. They do not affect Medicare or Social Security. If you receive Medicaid or SSI, consult a financial advisor about how large lump sums may temporarily affect eligibility.
FACT: HECMs are federally regulated, require mandatory independent HUD-approved counseling, and have strict consumer protections. Working with a licensed California lender like Homeowners Mortgage and Equity ensures full compliance and transparency.
Details generalized to protect privacy. Results vary based on individual circumstances.
We were paying $2,100/month on a mortgage with barely any Social Security coming in. Kevin showed us how to eliminate that payment entirely. Now we breathe again.
I already had a great rate on my first mortgage. Kevin set me up with a Reverse 2nd so I could keep that rate and still tap my equity. It was a perfect solution.
My Pasadena home was worth $1.8M — way above the FHA limit. The Jumbo program unlocked $720K for me with no monthly payment. It changed my retirement completely.
Our California specialist Kevin Pierce walks you through exactly how a reverse mortgage works — the mechanics, the protections, the costs, and who it makes sense for — without jargon or pressure.
Before receiving a HECM reverse mortgage, federal law requires you to complete a session with an independent, HUD-approved counselor. This is a consumer protection designed to ensure you fully understand how the loan works, your obligations, and alternatives.
Counseling typically costs $125–$200, lasts about 90 minutes (by phone or in person), and can be completed in advance of your application. The counselor works for you, not us.
Visit hud.gov/counseling or call (800) 569-4287 to locate a certified agency near you or available by phone.
The counselor will review loan mechanics, costs, alternatives (like home equity loans), and your long-term needs and goals.
After completion, you'll receive a signed certificate of completion, which your lender requires to process the application.
Provide your certificate to us and we'll proceed with your full application, appraisal, and closing timeline.
We see HUD counseling as a feature, not a hurdle. It protects you and ensures you're making a fully informed decision. We can help you schedule it at no cost to you.
We review your equity, age, and goals. No cost, no obligation, no pressure.
Complete your independent session. We'll help you schedule it easily.
We submit your application and order the FHA appraisal. Typically 2–3 weeks.
Our team works directly with the lender to move your file through quickly.
Sign your documents, and funds are typically available within 3 business days.
California is the nation's largest reverse mortgage market for good reason: median home values in metro areas like Los Angeles, San Diego, San Francisco, and Orange County routinely exceed the national FHA limit. This means many California borrowers benefit most from our Jumbo Proprietary Reverse Mortgage programs, which can accommodate properties valued up to $4 million or more without the FHA loan cap ceiling.
California's community property laws also play an important role. Both spouses — even if only one is on the title — must be disclosed on the loan application and may need to be listed as eligible non-borrowing spouses to ensure protection if the borrowing spouse predeceases them.
The standard HECM is federally insured by FHA, subject to annual loan limits ($1,249,125 in 2026), and requires the payment of an upfront and annual Mortgage Insurance Premium (MIP). In exchange, the FHA's non-recourse guarantee protects both borrowers and their heirs from owing more than the home is worth.
Proprietary (Jumbo) reverse mortgages are offered by private lenders without FHA insurance. They typically have no MIP, can accommodate much higher home values, and are available to homeowners as young as 55. However, they lack the federal non-recourse guarantee of the HECM program. For California homeowners with properties over $1.25M, a Jumbo Reverse often provides significantly higher proceeds.
Perhaps the most underutilized reverse mortgage strategy among financial planners is the HECM standby line of credit. Established early in retirement on a high-value home, the unused credit line grows at the loan's interest rate — independent of home value. A $300,000 line of credit established at age 65 might grow to $500,000 or more by age 80, providing a substantial tax-free buffer against market downturns, long-term care costs, or unexpected expenses.
Researchers at Texas Tech University and others have published extensively on this strategy, sometimes called the "coordinated strategy" — using the reverse mortgage line of credit in down market years to avoid selling portfolio assets at a loss.
The HECM for Purchase program (H4P) allows qualified buyers 62+ to purchase a new primary residence using a reverse mortgage. The buyer provides a down payment — the balance is covered by the reverse mortgage — and moves into the new home with no mandatory monthly mortgage payments.
This is particularly valuable for retirees looking to relocate to be near family, downsize to a single-story home, or move to a lower cost-of-living area while preserving investment assets.
The table below shows approximate Principal Limit Factors (PLF) — the percentage of the home value or MCA you can access — at various ages and interest rate scenarios. These are FHA-published factors and change periodically. Call us for a current, personalized quote.
| Age | 5.50% Rate (est.) | 6.50% Rate (est.) | 7.50% Rate (est.) |
|---|---|---|---|
| 62 | 52.4% | 47.0% | 41.8% |
| 65 | 54.6% | 49.2% | 44.0% |
| 70 | 58.5% | 53.3% | 48.2% |
| 75 | 62.7% | 57.8% | 52.9% |
| 80 | 67.3% | 62.6% | 58.1% |
| 85+ | 72.1% | 67.7% | 63.4% |
* Factors are approximate and illustrative only. Actual PLFs are set by HUD and change based on the Expected Interest Rate. Consult a licensed specialist for a current quote.
The most common cause of reverse mortgage default is failure to pay property taxes and homeowner's insurance. Lenders conduct annual occupancy certifications and review tax records. If you fall behind, the lender may advance funds from a set-aside account — or, in severe cases, call the loan due.
During the financial assessment, your lender will review your income, assets, and credit history to determine whether a Life Expectancy Set-Aside (LESA) is required — an automatic escrow that reserves funds for future taxes and insurance payments.
Free, no-obligation analysis. Most homeowners are surprised by how much they can access.
Get My Free Analysis (800) 405-6000California homeowners 55+ are sitting on record equity. A free 15-minute call with Kevin could unlock a retirement you haven't considered yet.
(800) 405-6000