Los Angeles Reverse Mortgage

Reverse mortgages are a financing option for Los Angeles seniors who want to stay in their homes while receiving tax-free income. They allow you to eliminate monthly mortgage payments and put your home equity to work.

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Our Los Angeles Reverse Mortgage Options

Our team can assist Golden State seniors in finding the perfect reverse mortgage option for their unique needs.

Los Angeles Reverse Mortgage Loan Process

We will guide you through every step of applying and being approved for a reverse mortgage loan, offering helpful advice along the way.

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Get a Los Angeles Reverse Mortgage Quote

Learn how much you can receive for your Los Angeles, CA, home with a free, no-obligation quote, all online.

Los Angeles Reverse Mortgages: Secure Your Financial Future

California homeowners can maintain their quality of life throughout retirement by using reverse mortgage loans, a product tailor-made for the needs of senior borrowers.

Benefits of a Los Angeles Reverse Mortgage

Los Angeles is one of the most expensive areas in the United States, with home prices around $940,000. At the same time, California’s cost of living is approximately 38% higher than the national average.

The current market’s higher interest rates make purchasing a new home or refinancing to leverage home equity challenging for seniors, but reverse mortgages are a better solution.

Home Equity Conversion Mortgage (HECM) loans are among the most popular options. They replace your existing mortgage with a new, larger loan without making monthly mortgage payments. Instead, you’ll receive money back based on your home equity, increasing your cash flow.

Unlike a home equity loan or home equity line of credit, you don’t need to repay the loan until you move out of your primary residence. You can instead enjoy tax-free income that won’t impact your Social Security or Medicare benefits. You’ll also be able to choose exactly how you receive your funds, whether as an upfront sum or a monthly installment.

How Does a Los Angeles Reverse Mortgage Work?

The most common option for reverse mortgages is the Home Equity Conversion Mortgage (HECM), which is insured by the Federal Housing Administration (FHA). To qualify, borrowers must be at least 62 years old and use the property as their principal residence.

They also should not owe federal debt, or it must be repaid using the money from the reverse mortgage. Generally, you must have at least 50% equity in the home.

A HECM loan is currently capped at a $1,149,825 lending limit, and you must undergo counseling with an approved counselor from the Department of Housing and Urban Development (HUD).

You can find a counselor in Los Angeles on the California Housing Finance Agency website. This is to ensure you are making an informed decision and are aware of your obligations as a borrower.

The amount you can receive is based on your home’s property value after appraisal. You can receive your funds in several ways: a lump sum, monthly payments, or a line of credit that you can draw down as necessary. It’s also possible to combine these options based on your specific needs. You will still be responsible for property taxes and homeowners insurance.

Reverse mortgages only enter repayment when the home is no longer used as a principal residence, such as if you sell the residence, move away, or pass away. In the case of inheritance, your surviving family members must pay the reverse mortgage balance or put the house up for sale at least 95% of its value if it’s underwater.

Why Choose Arnaiz Mortgage for Your Los Angeles Reverse Mortgage

Our team is here to assist eligible homeowners throughout California, including Los Angeles and San Diego, find the perfect mortgage product for their needs. A reverse mortgage advisor from our team will take the time to understand your financial goals and match you to a lender with terms you’ll love.

Trust and transparency are critical elements of the relationship between a client and their mortgage broker. We are here to be your advocate and guide you through the mortgage process. We provide a seamless, streamlined application and can finance your loan faster, so you’ll have the first payment in hand sooner than ever.

Contact our helpful loan officers at (623) 806-4645 or get a free quote online to see how much you can receive from your Los Angeles, California, home.

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Frequently asked questions about Los Angeles Reverse Mortgage

  • What are the eligibility requirements for a reverse mortgage in Los Angeles?

    To qualify for a reverse mortgage, you must be at least 62 years old and use the home as your principal residence. You should not owe federal debt or be able to cover all of it with your loan proceeds. You will need to undergo mandatory finance counseling to understand your obligations.

  • How much home equity is needed to qualify for a reverse mortgage in Los Angeles?

    Generally, you must have at least 50% equity, but some private lenders may accept different percentages.

  • What fees and closing costs are associated with reverse mortgages in Los Angeles?

    Borrowers must pay origination fees to the lender, which is capped at $6,000 for HECM loans. You will also pay closing costs covering inspections, appraisals, title searches, and other costs. HECM loans come with an initial mortgage insurance premium that is typically 2% of the total amount and annual insurance premiums.

  • How will a reverse mortgage affect my property taxes and insurance in Los Angeles?

    Homeowners are still responsible for their real estate taxes and homeowner’s insurance, but obtaining a new loan will generally not affect the costs. Money from reverse mortgages is not counted as income tax and will not make you ineligible for government programs like Medicare.

  • What happens if I sell my home or move out of Los Angeles with a reverse mortgage?

    When the home is no longer a principal residence, the mortgage comes due, and you still start making a mortgage payment in monthly installments as you would with a typical mortgage.

  • Can I refinance my existing reverse mortgage in Los Angeles?

    Yes, it’s possible to refinance a HECM. You can do this to reduce interest rates, add a new cosigner, or take out a different amount. It’s also possible to convert your loan back into a traditional mortgage if you want to start repaying it, which can help ensure your family can keep the house after you pass away.

  • How do high home values in Los Angeles impact reverse mortgage loan amounts?

    The Los Angeles, California, housing market determines how much lenders will extend to you in a reverse mortgage loan. When home prices go up, so does your share of the home’s ownership, and you can receive more money.

    From 1990 to 2022, prices in Los Angeles, CA, went up by over 275%, making it one of the fastest-growing markets in the nation. This means you may receive far more than its original purchase price when you secure a reverse mortgage, helping you afford the high living cost.

  • How will a reverse mortgage in Los Angeles affect my heirs or estate?

    If you pass away with a reverse mortgage, your estate or surviving family members must satisfy the debt or put the house up for sale. Heirs can usually purchase the house for 95% of its current market value if the home is underwater.

  • Are there restrictions on using the funds from a reverse mortgage in Los Angeles?

    A HECM reverse mortgage has no restrictions on how you can use the funds. You can use them to purchase a vacation home, pay monthly bills, or make necessary home repairs.

    If you have a specific need, you can work with private lenders to secure a single-purpose reverse mortgage, which will be restricted to a particular purchase. You and the lender will agree on what to use the mortgage for, and you will demonstrate that you have applied the funds toward this purpose.

  • How long does the reverse mortgage process take in Los Angeles?

    The reverse mortgage process in Los Angeles, CA, generally takes approximately 30-45 days, but this is only a guideline. We can often complete the reverse mortgage faster, and if there are any delays, we will keep you updated on the progress.