Fresno Reverse Mortgage

With HECM loans provided by the Department of Housing and Urban Development (HUD), retirees can tap into their home's equity and avoid making monthly mortgage payments, helping secure their financial future in their golden years.

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Our Fresno Reverse Mortgage Options in California

A friendly loan officer from our team will help you find the right reverse mortgages for your specific needs, whether that is a HECM or proprietary loan.

Fresno Reverse Mortgage Loan Process

We guide seniors through every step of the mortgage process, ensuring they’re confident in their loan choices.

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Fresno, CA Reverse Mortgages: Secure Your Financial Future

Also known as a Home Equity Conversion Mortgage (HECM), reverse mortgages allow you to borrow against the home equity on your principal residence.

HECM loans can be used by homeowners over 62 who have significant equity or have already repaid their original home loan.

Benefits of a Fresno, CA Reverse Mortgage

HECM loans are an excellent option for those on a fixed income because instead of you paying a mortgage, the lender pays you. These flexible payments are perfect for supplementing your pension, especially as they are tax-free income.

Fresno home values have risen by 4.7% in just the last year to more than $380,000, meaning those who have owned their homes for decades may have significant equity they can convert into cash. An appraisal will help decide how much you qualify for, which may be far more than you think, given Fresno’s hot market.

Unlike a home equity loan, these loans do not have to be paid back until the home transfers ownership, offering tax-free payments on a set schedule. While the lender will pull a credit report, your credit score isn’t a factor in eligibility, making it easier to qualify.

You can remain in your home without making monthly mortgage payments, though you will still be responsible for home maintenance and taxes.

Like other FHA products, HECM loans are subject to loan limits. As of 2024, the loan limit for Fresno, CA, is $1,149,825. If HECM loans do not appeal to you, private lenders also offer proprietary reverse mortgages that are not subject to the same restrictions.

These proprietary options are great for those who own high-value homes and want to receive more income during retirement.

How Does a Fresno Reverse Mortgage Work in California?

HECM loans, the most common type of reverse mortgage, are insured by the Federal Housing Administration (FHA), a division of HUD. To be eligible, all Fresno homeowners who cosign the loan must be over 62.

These loans are only available for a primary residence, which may be a single-family home, an FHA-approved manufactured home, or a multi-unit property where one unit is the primary residence. Additionally, the homeowner must usually have at least 50% equity.

For HECM mortgages, you must undergo financial counseling with a HUD-approved counselor before closing the loan, ensuring you understand your rights and obligations. You’ll begin receiving payments after you’ve been approved and the origination fee has been paid.

Reverse mortgage loans are a flexible payment option. Depending on your needs, you can receive a lump sum payment, monthly payments, a line of credit, or a mix of these. You can also choose between fixed rates and adjustable rates.

As an added benefit, reverse mortgages do not come due until the home transfers ownership, such as at sale or the death of the homeowners. If you don’t intend to buy a new home before you pass away, you’ll never have to repay the loan; instead, your heirs can decide if they want to pay it off or sell the property.

Why Choose Arnaiz Mortgage for Your Fresno, CA Reverse Mortgage

Arnaiz Mortgage works closely with homeowners throughout California’s Central Valley to ensure they receive reverse mortgages that fit their needs. The Fresno market has changed rapidly in the past few years, with home prices changing significantly monthly.

We’ll help you decide when is the perfect time to apply for a new loan based on how long you have owned the property and how market changes influence your equity.

We pride ourselves on our commitment to transparency. Our team understands your home is your greatest investment and wants to ensure you get the best deal possible on reverse mortgages. Most importantly, we’ll ensure your loan is processed quickly and that you’re fully aware of all facets of reverse mortgages, including the upfront costs and your obligations.

To talk to a loan officer about HECM mortgages, call us at (623) 806-4645. You can also apply online or get a quote to learn how much you can receive with a HECM loan.

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Frequently asked questions about Fresno Reverse Mortgage

  • What are the eligibility requirements for a reverse mortgage in Fresno, CA?

    To qualify for a HECM loan in Fresno, CA, you must meet these qualifications:

    • Everyone on the mortgage must be at least 62 years old.
    • It must be a primary residence.
    • You should have at least 50% equity.
    • You cannot owe any federal debt or use the proceeds to pay these debts first.
    • At least one homeowner must go through reverse mortgage counseling with a HUD-approved counselor.
    • You must have funds to pay for ongoing house costs.
  • How much home equity do I need for a reverse mortgage in Fresno, CA?

    Typically, you should have at least 50% home equity. Some lenders, such as those who provide proprietary reverse mortgages, may allow for a slightly lower percentage.

  • What are the fees and closing costs associated with a reverse mortgage in Fresno, CA?

    If you are seeking a home equity conversion mortgage, origination fees are capped at 2% of the total loan. You will also need to pay closing costs, which are similar to those for a new loan, and an initial insurance premium paid to the FHA, which ranges from 0.5% to 2.5% of the home’s appraised value.

  • How does a reverse mortgage affect property taxes and insurance in Fresno, CA?

    You are still responsible for property taxes and homeowners insurance on your home, which should not be directly affected by taking out this new loan.

  • What happens if I sell or move out of my home in Fresno, CA, with a reverse mortgage?

    If you transfer the home to anyone, either by moving out or selling it, your reverse mortgage will come due, and you will need to repay the loan balance.

  • Can I refinance an existing reverse mortgage in Fresno, CA?

    Yes, you can refinance an existing mortgage, such as adding a spouse who has just turned 62. However, you must go through counseling again, and the same limitations still apply.

  • How do home values in Fresno, CA, affect reverse mortgage loan amounts?

    The amount of funding you can receive depends on your home equity, meaning that when home values rise, your potential loan amount also increases.

  • How will a reverse mortgage impact my heirs and estate in Fresno, CA?

    Once a home is transferred to a new individual, the reverse mortgage comes due. If you have an HECM on the property, surviving family members can repay the balance or sell the home for at least 95% of the appraised value if it’s underwater. Homes that aren’t underwater can be sold for any price.

  • Are there restrictions on using the funds from a reverse mortgage in Fresno, CA?

    If you choose an HECM mortgage, there are no restrictions on how you use the money. Borrowers may use their funds to make necessary home repairs, pay for medical bills, or simply supplement their retirement income to improve their quality of life.

    However, borrowers who use a single-purpose loan from a private lender must only use the funds for the purpose outlined in their loan agreement.

  • How long does the reverse mortgage process take in Fresno, CA?

    Typically, you can complete the entire process in 45 days. There is a mandatory cooling-off period of 7 days from the time you complete counseling to when you sign the paperwork, meant to ensure you have had time to assess whether a reverse mortgage is right for you.

    Our team works to expedite the HECM loan process and can generally complete your transaction quickly. We will keep you updated throughout the process and ensure that you’re aware of any delays in funding.