Riverside Reverse Mortgage

California seniors can maintain their standard of living in retirement with reverse mortgage loans, which provide tax-free income while eliminating monthly mortgage payments.

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Our Riverside Reverse Mortgage Options

Our reverse mortgage specialists will help you find the perfect loan servicer for your specific life circumstances.

Riverside Reverse Mortgage Loan Process

Arnaiz Mortgage’s simple, streamlined reverse mortgage process funds your loan faster, allowing you to receive cash quickly.

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Learn how much you can receive when cash in your home equity with a California reverse mortgage loan.

Riverside Reverse Mortgages: Secure Your Financial Future

Homeowners over the age of 62 can use reverse mortgage loans to convert their home equity into money without moving out of the home they love.

Benefits of a Riverside Reverse Mortgage

Riverside County in California is an incredibly expensive place to live; the average home is worth more than $600,000, and the cost of living throughout the state is significantly higher than the national average. Rather than purchasing a new home and pocketing the proceeds, seniors can use their existing homes to fund their retirement with reverse mortgages.

With a reverse mortgage, you’ll get a portion of your home’s value as steady income you can use to pay other bills, cover house repairs, or even buy a vacation home. You also won’t have to worry about a mortgage payment unless you move out of the property, saving you cash during retirement.

As an added perk, the payments from reverse mortgages are tax-free and won’t impact your access to government benefits like Social Security or Medicare.

How Does a Reverse Mortgage Work?

The most common type of reverse mortgage is the Home Equity Conversion Mortgage (HECM), which is insured by the Federal Housing Administration (FHA). With this product, you replace your existing mortgage with a new, larger loan based on your home’s market value, and you receive the difference as payments from the lender.

To qualify, all cosigners must be at least 62 years old and use the property as their primary residence. You will typically need at least 50% home equity and should not owe any federal debt or cover this with your loan money.

Before your loan is funded, you must undergo a mandatory counseling session with a HUD-approved financial counselor. You can find a local counselor at the California Housing Finance Agency website. You must also undergo a cooling-off period between your counseling session and closing on the loan. The maximum loan available through a HECM is $1,149,825.

Once your reverse mortgage is approved, you can receive your funds in various ways: as a lump sum upfront payment, monthly installments, or a line of credit you can use as needed. It’s also possible to mix and match these options.

A reverse mortgage only needs to be repaid once you move out, sell the home, or pass away. In the case of inheritance, your estate or heirs will need to repay the loan if they want to keep the property, or they can sell it for at least 95% of its appraised value if it’s underwater.

Why Choose Arnaiz Mortgage for Your Riverside Reverse Mortgage

Every member of our team is committed to helping homeowners find the perfect loan product for their needs. When you work with us, you will receive transparent, honest advice and helpful information about lenders whose products you’ll love.

Our loan specialists are familiar with the local market and can offer a professional opinion on what options best reflect the current market conditions.

We’re not just here to help you get a mortgage; we’re partners in your quest for financial freedom. Our reverse mortgage process is streamlined and stress-free, so you can stay in the home you love while enjoying secure, tax-free income.

If you’re ready to put your home to work for you, contact us today at (623) 806-4645 or get a free quote online. You can also apply now to start the process.

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Frequently asked questions about Riverside Reverse Mortgage

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

    All cosigners must be above the age of 62 and use the property as their principal residence. You cannot owe federal debt, though you may still qualify if you can repay the debt with your loan funds. You will need to undergo financial counseling by a HUD-approved counselor.

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

    Generally, you must have at least 50% equity to qualify for a HECM. However, some private lenders that provide proprietary reverse mortgages may accept different percentages.

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

    You must pay origination fees, which are capped at $6,000 for a HECM. You’ll also have closing costs, such as title searches and inspections, and an initial mortgage insurance premium, typically about 2%.

  • How does a reverse mortgage affect property taxes and insurance in Riverside?

    You are still responsible for your property taxes and homeowner’s insurance with a reverse mortgage, though they are not generally impacted by replacing your existing mortgage. Your lender will want to see you have the funds to cover these costs.

    Additionally, the funds you receive from a reverse mortgage will not influence your income tax bracket or factor into your eligibility for Social Security or Medicare benefits. They may impact some needs-based government programs like SSI or Medicaid. We’ll let you know how this may change your circumstances if you rely on these programs.

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

    The loan must be repaid when the home is no longer being used as a principal residence. This means if you move into a new house or sell the property, you will need to start making monthly mortgage payments.

  • Can I refinance my existing reverse mortgage in Riverside?

    Yes, you can pursue a reverse mortgage refinance if necessary. This may be used to add a new cosigner who was not 62 when you opened the loan, to change the interest rate, or to take out a different sum of money.

    It’s also possible to convert a reverse mortgage into a traditional mortgage if you’d like to begin making payments and building home equity again.

  • How do Riverside home values impact the loan amount for a reverse mortgage?

    When home values rise, so does your potential windfall from a reverse mortgage, as you will have more equity to leverage. Home values in this region have increased by 4% in just the past year, so those who have lived in their homes for a long time may have significant equity they can use.

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

    When you pass away, your heirs will be responsible for covering the reverse mortgage. If they want to keep the house in the family, they can start making payments on the loan or sell the property for at least 95% of its appraised value to cancel the loan.

    However, the 95% rule only applies if the home is underwater. A professional at Arnaiz Mortgage can help you understand how a reverse mortgage will impact your heirs.

  • Are there restrictions on using the funds from a reverse mortgage in Riverside

    A Home Equity Conversion Mortgage (HECM), the most common type of reverse mortgage, does not restrict how you can use the proceeds. You may use it for house upgrades, paying down other debts, purchasing a vacation home, or simply supplementing your retirement income.

    However, seeking a proprietary reverse mortgage, such as a single-purpose mortgage, is also possible. With this option, you will be limited in how you can use the funds, as you and the lender will agree on how the proceeds can be used. These are common for making secondary property purchases like a vacation home or real estate investment.

  • How long does the reverse mortgage process take in Riverside?

    As a general rule of thumb, it takes approximately 30 to 45 days to complete a reverse mortgage. However, your timeline may vary based on factors like the condition of the house, market estimates, and when you schedule your financial counseling session.

    Our team will keep you updated throughout the process and inform you of any potential delays in closing the loan. You can always contact us for more information about your reverse mortgage. We are happy to help.