Sacramento Reverse Mortgage

Stay in the home you love while funding your retirement with a reverse mortgage loan. This loan offers tax-free income by leveraging your home equity.

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Our Sacramento Reverse Mortgage Options

Our team will match you to a Sacramento reverse mortgage lender providing loan terms you’ll love.

Sacramento Reverse Mortgage Loan Process

We will guide you through our simple, streamlined reverse mortgage process, ensuring you get your money faster.

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Get a Sacramento Reverse Mortgage Quote

Learn how much you can save by requesting a free, no-obligation quote based on your home’s current value.

Sacramento Reverse Mortgages: Secure Your Financial Future

A reverse mortgage eliminates monthly mortgage payments without selling your home, allowing you to stay in the community you love with additional tax-free income.

Benefits of a Sacramento Reverse Mortgage

Like many places in California, Sacramento’s housing prices and the cost of living have risen dramatically in recent years. The average Sacramento house is worth more than $479,000, up 2.7% in the past year.

Nearby Roseville is even more expensive at $636,000, 5.1% more than in 2023. The market’s interest rates are some of the highest in recent history, meaning purchasing a new property will cost you even more in the long run.

Thankfully, Sacramento seniors can leverage their equity without selling using a reverse mortgage loan. You can stay in the city you love, visiting beautiful places like the Crocker Art Museum or the Sacramento Zoo while enjoying tax-free income based on your home equity.

By replacing their existing mortgage with a larger one based on today’s real estate prices, homeowners can cash in on their home’s value, and the loan doesn’t need to be repaid until they move away, sell property, or pass away. Plus, you’ll access funds without monthly payments, securing your financial future in your golden years.

How Does a Sacramento 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). This is a non-recourse loan, meaning you can not owe more than the asset is worth, which helps protect you from foreclosure or other monetary issues.

To qualify, borrowers must be at least 62 years old and use the subject property as their primary residence. They also should not owe federal debt or be able to pay it off using their loan proceeds.

To be eligible for these loans, seniors usually need to have at least 50% equity. While your credit score is not a factor in whether you can get an HECM, the lender will look at whether you have a history of making mortgage payments on time, which proves your creditworthiness.

HECM borrowers need to undergo a financial counseling session with a HUD-approved counselor. You can find a list of these counselors on the California Housing Finance Agency website. Afterward, there will be a mandatory cooling-off period to ensure the borrower has had time to consider whether this loan is the right option for them.

Once you complete your application and get approval, you can choose how to receive your funds. The maximum amount allowed with an HECM is $1,149,825, and you cannot receive more than 60% of the total amount within the first year.

You can get an upfront lump sum, monthly payments, or a line of credit you can use as necessary. You can also mix and match these or change your preferred payment type anytime.

A reverse mortgage only comes due when the property changes hands, such as if the borrower moves away, sells the home, or passes away. In the case of inheritance, the surviving family members must pay the balance or put the house up for sale for at least 95% of the appraised value if it’s underwater. The 95% rule only kicks in if the home is underwater.

Why Choose Arnaiz Mortgage for Your Sacramento Reverse Mortgage

Our team provides Sacremento’s senior population with transparent, honest advice about the reverse mortgage process. Trust is crucial to our company culture. We believe in building long-lasting relationships with our clients rather than simply selling products.

A Sacramento, California, reverse mortgage specialist from our team will help match you to the right products for your needs, basing our advice on the current market and your individual goals. When we advise you, we’ll consider your equity, the intended purpose of your reverse mortgage, and the California market, ensuring all factors are considered.

Our experienced loan officers can guide you through all the steps to ensure a seamless and hassle-free experience. We’re always available to answer questions and update you on everything related to your reverse mortgage.

To get started with your reverse mortgage, call us today at (623) 806-4645 and speak to a loan specialist. You can also get a free quote or apply online and put your house to work for you.

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Frequently asked questions about Sacramento Reverse Mortgage

  • What are the eligibility criteria for a reverse mortgage in Sacramento?

    To seek reverse mortgages, borrowers must be at least 62 years old and use the house as their primary residence. They should not owe federal debt or use the money to satisfy these debts. They must undergo mandatory counseling before the reverse mortgage product can be approved, working with a HUD-approved counselor in their area.

  • How much home equity is required to qualify for a reverse mortgage in Sacramento?

    You should typically have at least 50% equity, though some non-HECM reverse mortgages will allow a different percentage.

  • What are the fees and closing costs associated with a reverse mortgage in Sacramento?

    Homeowners must pay origination fees, which are capped at $6,000 for HECM loans. You’ll also have to pay closing costs, which pay for inspections, appraisals, and title searches. Finally, HECMs require an initial mortgage insurance premium, usually 2% of the total loan amount, and annual premiums.

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

    Though you no longer have to pay monthly mortgage payments, you are still responsible for property taxes and homeowner’s insurance if you take out a reverse mortgage. They are usually not impacted by getting a new mortgage.

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

    When the house is no longer your principal residence, the mortgage will come due, and you will need to begin making repayments.

  • Can I refinance my existing reverse mortgage in Sacramento?

    You can refinance your existing mortgage if you want to add a new cosigner, change the interest rate, or take out a larger loan. You can also convert reverse mortgages into traditional ones if you want to build equity again.

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

    The housing market helps to determine how much you can receive from a Home Equity Conversion Mortgage (HECM) or other reverse mortgage product. The more your house is worth, the more you can receive from a mortgage. Thankfully, Sacramento, California, has a robust housing market, and prices are rising quickly.

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

    If you pass away before repaying the mortgage, your family members will be responsible for covering the cost. They can either start making repayments or put the house up for sale. Heirs can purchase the home for 95% of its current value if it’s underwater. However, if the home has equity, they can sell it for however much they’d like.

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

    HECMs do not have any restrictions on how you can use the proceeds. You can apply them for living expenses, purchasing a vacation house, paying off other debts, or making necessary repairs on your house.

    Getting a single-purpose reverse mortgage from a private lender is also possible. The funds from this proprietary reverse mortgage will be earmarked for a specific need, such as an investment, repair, or satisfying other debts. You and the lender will agree on how the cash will be used, and you’ll provide evidence that you used it for this need.

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

    Sacramento reverse mortgages typically take between 30 and 45 days to complete. We strive to streamline our process so that clients can get their money faster, so we may be able to close your mortgage sooner than this.

    Our team will remain in constant contact with you throughout the reverse mortgage process so you’re always aware of any potential delays.