Residential Mortgage

Reverse Mortgages

Allows homeowners aged 62 and older to convert home equity into cash without monthly mortgage payments. Ideal for supplementing retirement income while staying in your home.

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Is This Loan Right for You?

A reverse mortgage is right for you if you are 62 or older, own your home with significant equity, and want to supplement your retirement income without making monthly mortgage payments. The loan is repaid only when you sell, move, or pass away. The most common type is the Home Equity Conversion Mortgage, insured by the FHA through HUD, with a lending limit of $1,209,750. Disbursement options include a lump sum, monthly payments, a line of credit, or a combination. An upfront MIP of 2% plus annual MIP of 0.5% applies under the HECM program. Non-recourse protection ensures you or your heirs never owe more than the home is worth, and HUD-approved counseling is required before closing. Compared to a HELOC that requires monthly repayments, a reverse mortgage eliminates payment obligations entirely while you remain in your home. Choose a reverse mortgage if you want to age in place while converting your largest asset into tax-free retirement income.

Requirements

What Are the Reverse Mortgage Requirements?

Loan Limits

HECM limit: $1,209,750 (per HUD/FHA, 2024); proprietary reverse mortgages available for higher values

PMI / MIP

FHA MIP: 2% upfront + 0.5% annual (for HECM loans)

Occupancy

Primary residence only

Features

Key Features

No monthly mortgage payments required
Available as lump sum, monthly payments, or line of credit
Borrower retains ownership and can live in the home
Non-recourse loan: you never owe more than the home is worth
FHA-insured through the HECM program

Process

How It Works

HUD Counseling

You must complete a session with a HUD-approved reverse mortgage counselor who explains how the program works, its costs, and alternatives. This is required by law to protect borrowers.

Application & Documentation

Submit your application with property details and identification. Income verification focuses on ensuring you can pay property taxes, insurance, and maintenance rather than qualifying income.

Appraisal & Underwriting

A FHA appraisal determines your home's value and ensures it meets HUD minimum property standards. The underwriter calculates your available proceeds based on age, home value, and interest rates.

Closing & Disbursement

Sign closing documents and choose your disbursement option: lump sum, monthly payments, line of credit, or a combination. Existing mortgage is paid off first, and remaining proceeds are yours.

Estimate Your Payment

Purchase Price

Down Payment20%

Loan Term

Interest Rate

Annual Property Tax

Annual Insurance

Monthly HOA

Results

Principal & Interest$2,128.97

Property Tax$416.67

Insurance$150

Total Monthly Payment$2,695.64

This information is not intended to be an indication of loan qualification, loan approval or commitment to lend. Rates, terms, and availability of programs are subject to change without notice.

Pros & Cons

What Are the Pros and Cons of Reverse Mortgage?

Advantages

No monthly mortgage payments — the loan is repaid when you leave the home
Supplement retirement income while staying in your home
Non-recourse protection means you or your heirs never owe more than the home is worth
Flexible disbursement options: lump sum, monthly payments, or line of credit

Considerations

Upfront costs including origination fees and mortgage insurance can be significant
Reduces the equity available for your heirs
You must continue paying property taxes, homeowners insurance, and maintenance

FAQ

Frequently Asked Questions

Instead of making monthly payments to a lender, the lender pays you. You retain ownership and live in the home. The loan balance grows over time as interest accrues on the amount borrowed. The loan becomes due when you sell, move out permanently, or pass away.

A Home Equity Conversion Mortgage (HECM) is the most common type of reverse mortgage. It is insured by the FHA and available through FHA-approved lenders. HECM loans have a lending limit of $1,209,750 in 2024.

Reverse mortgage proceeds are considered loan advances, not income, so they do not affect Social Security or Medicare benefits. However, if you receive Medicaid or SSI, excess funds could affect eligibility. Consult a benefits advisor for your specific situation.

Your heirs can repay the loan and keep the home, sell the home and keep any remaining equity after repaying the loan, or walk away if the loan balance exceeds the home's value (non-recourse protection). They have up to 12 months to settle.

The amount depends on your age (older borrowers qualify for more), home value, current interest rates, and HECM lending limits. A 70-year-old might access 40-50% of the home's value. Your reverse mortgage counselor and lender can provide exact figures.

You can lose your home if you fail to pay property taxes, homeowners insurance, or maintain the property. You must also continue to live in the home as your primary residence. As long as you meet these obligations, you can stay in the home for life.

More Questions About Reverse Mortgages

Reverse mortgages typically include origination fees (up to 2% of the home value), mortgage insurance premiums, appraisal fees, title insurance, and closing costs that generally range from $2,000 to $6,000. These costs can be paid out of pocket or rolled into the loan balance, though rolling them in increases the amount you owe and reduces your available equity. It's important to compare fee structures between lenders, as costs can vary significantly across California.

California's higher home values generally allow borrowers to access larger lump sums or credit lines compared to other states, but recent market fluctuations can impact the loan amount you're eligible for based on current appraisals. Interest rates and the specific terms offered by lenders also fluctuate with market conditions, so it's worth shopping around and locking in rates when favorable. Rising property taxes and maintenance costs in California can also affect your long-term financial planning with a reverse mortgage.

Yes, if your home appreciates significantly, you may be able to refinance into a new reverse mortgage to access additional funds based on the increased equity, though you'll incur new closing costs and fees. Some California borrowers use this strategy when home values jump substantially in hot real estate markets, but you should carefully evaluate whether the new costs justify the additional borrowing. Alternatively, you could access equity through a home equity line of credit or traditional refinance if you prefer to avoid the complexities of a second reverse mortgage.

These FAQs are generated with AI assistance and reviewed periodically. For personalized advice about your specific situation, please call us or apply online.

Local Expertise

Getting a Reverse Mortgage Loan in the San Gabriel Valley

NetCORE Lending™ is headquartered in Diamond Bar and has been helping borrowers across the San Gabriel Valley secure reverse mortgage financing since 2015. We serve homebuyers and homeowners in Pomona, Walnut, Rowland Heights, West Covina, Chino Hills, Covina, La Verne, Glendora, San Dimas, Hacienda Heights, and City of Industry — as well as borrowers throughout California.

As a local mortgage broker, we understand the San Gabriel Valley real estate market — from the higher-value properties in Chino Hills and Diamond Bar to the more affordable options in Pomona and West Covina. Our team provides bilingual service in English and Vietnamese and shops 100+ wholesale lenders to find you the lowest available rate on your reverse mortgage loan.

Call (714) 399-6361 to discuss reverse mortgage options with a local loan advisor, or get pre-qualified online in 2 minutes.

Also Consider

Explore other loan products that might be a good fit for your needs.

HELOC

Access your home equity with a flexible revolving line of credit. NetCORE offers HELOCs up to 90% LTV, significantly higher than the typical 65% offered by banks.

Refinance

Replace your existing mortgage with a new loan to lower your rate, reduce monthly payments, shorten your term, or access your home equity through cash-out refinancing.

Ready to Get Started?

Apply online in minutes or call us to speak with a loan advisor about your Reverse Mortgage options.

Learn About Reverse Mortgages (714) 399-6361

Official Sources

This information is not intended to be an indication of loan qualification, loan approval or commitment to lend. Rates, terms, and availability of programs are subject to change without notice.

Reviewed by Joann Ton, Loan Officer (NMLS# 1461031) | Last updated: June 2026