Questions families ask
235 common questions about reverse mortgages, with short, plain answers. Tap a question to open it. Each one links to the full guide.
Set-asides and refinancing · For families · Honest answers · How it works · Near Diamond Bar
Set-asides and refinancing
How a set-aside (LESA) works: who needs one and what it costs
Is a set-aside the same as an escrow account?
Not quite. Think of it this way: with a fully funded set-aside, the money isn't sitting in an escrow account; it's part of your loan's available funds that's reserved, and each tax or insurance payment the lender makes is added to your loan balance.
Can I get a reverse mortgage if I'm behind on my property taxes?
Property taxes and insurance that are due at closing are paid first from the reverse mortgage, and the lender may then require a set-aside. Whether you qualify depends on the Financial Assessment and on whether the loan is large enough to cover it all. Talk with an independent HUD-approved counselor and a lender before you count on it.
Does my credit score decide it?
The Financial Assessment looks at your credit history, your income and your regular expenses. HUD's regulation names those things, not a single score cutoff.
Can I cancel the set-aside later?
If you chose a set-aside yourself, it can't be canceled. If the lender required yours, ask the lender in writing whether anything could change it later.
What happens to set-aside money I don't use?
Ask your servicer in writing what happens to money left in the set-aside, including at payoff. I won't guess at it here.
Refinancing your mortgage into a reverse mortgage with a set-aside
Can you refinance a mortgage into a reverse mortgage?
Yes, if you're 62 or older, the home is your main home, you meet the Financial Assessment, and the reverse mortgage is large enough to pay off your current mortgage and everything else required at closing.
Will I still have a monthly payment?
There's no required monthly mortgage payment with a HECM. You still pay property taxes, homeowners insurance, HOA dues and upkeep. With a fully funded set-aside, the lender pays the taxes and insurance from it and adds each payment to your balance, as long as it lasts. You can make voluntary payments if you want to slow the balance's growth.
My spouse is under 62. Can we still do this?
Possibly, but the rules for a younger spouse who isn't on the loan matter a lot, and they must be named in the loan documents to be protected. Ask your counselor about it before anything else, and bring your spouse along.
Is it better than a cash-out refinance or a HELOC?
It depends on your situation, and I'll go over both with you. Those loans have monthly payments; a reverse mortgage doesn't, but its balance grows. Compare your options.
HomeSafe Second: tap your equity and keep your first mortgage
Can I get a reverse mortgage and keep my current mortgage?
With HomeSafe Second, yes: it sits behind your current mortgage, which stays in place. With a HECM, the new loan has to pay off any existing mortgage.
Is HomeSafe Second the same as a HECM?
No. It's a proprietary (private) loan. It isn't part of HUD's HECM program and isn't FHA-insured, so its age rules, loan amounts and terms are different.
Do I have to make monthly payments?
None are required on HomeSafe Second, and you can pay any amount without a penalty. You still make your first mortgage payments, and you still pay property taxes, homeowners insurance, HOA dues and upkeep.
Can my kids keep the house?
Yes, if they pay off HomeSafe Second, for example with their own money or a new loan, and also pay off or keep up the first mortgage. They can also sell the home and use the proceeds.
I'm 58. Is that too young?
Not for HomeSafe Second in California, where the minimum age is 55. A HECM requires the youngest borrower to be 62.
The Financial Assessment: what a reverse mortgage lender checks
Can I get a reverse mortgage if my credit isn't good?
A HECM has no minimum credit score. The lender reviews your credit history, income and expenses, and considers documented hard seasons and strengths. Some people qualify with a set-aside, and some don't.
Why would someone with a paid-off home be denied?
Owning the home isn't the only test. The lender also needs to see that taxes and insurance are likely to stay paid and that income covers regular expenses. If the review shows a concern that can't be addressed, the lender may not be able to approve the loan.
Who keeps paying the property taxes and homeowners insurance?
You do, unless you have a fully funded set-aside. Then the lender pays them from it and adds each payment to your balance. HOA dues and upkeep stay yours either way.
What is a LESA?
A Life Expectancy Set-Aside is part of the loan held back to pay property taxes and insurance, sized over the youngest borrower's life expectancy. It lowers what you can borrow. See how it works.
Behind on taxes or insurance on a reverse mortgage: what to do
What happens if I fall behind on property taxes with a reverse mortgage?
The servicer will contact you, and the loan can be called due if property charges stay unpaid. Before that, options such as a repayment plan may be available. Call early. A default can be cured any time before foreclosure.
Can a reverse mortgage foreclose on you, and how can you get more time?
Yes, it can if the loan terms aren't met, including taxes and insurance. More time may come from a repayment plan or, if the youngest living borrower is 80 or older and there are critical circumstances, an At-Risk extension. See can you lose the home?
Who keeps paying the property taxes and homeowner's insurance on a reverse mortgage?
You do, unless you have a fully funded set-aside, which pays them and adds each payment to your balance. HOA dues and upkeep stay yours. See how a set-aside works.
I got a foreclosure notice. Is it real?
I can't tell from here. Don't use the phone number on the letter. Call the servicer using the number on your statement, and ask a HUD-approved counselor to look at it with you. Scams aimed at older homeowners exist.
Can I postpone my California property taxes if I have a reverse mortgage?
The two don't mix well. Under California's Property Tax Postponement program, the postponed taxes become a state lien and carry 5% simple interest, and choosing a reverse mortgage makes all postponed taxes due. So does refinancing the home. Ask your servicer and the program before you apply for either.
Refinancing a reverse mortgage you already have (HECM to HECM)
Can you refinance a reverse mortgage?
Yes. You can refinance a HECM into a new HECM, into a regular mortgage, or into a private reverse mortgage. A new HECM goes through the full review again, comes with HUD's anti-churning disclosure, and gives you credit for upfront mortgage insurance you already paid.
Can a reverse mortgage be refinanced to get more money?
Sometimes. If your home's value or HUD's limit has gone up, the new loan's principal limit may be higher. The anti-churning disclosure shows the lender's best estimate of the increase (or decrease) and the total cost. If the gain isn't clearly bigger than the cost, it's usually not worth it.
Reverse mortgage vs. refinance: which is better?
It depends on what you need. A regular refinance gives you a monthly payment and needs income to qualify. A reverse mortgage has no required monthly mortgage payment, but the balance grows, and you still pay taxes, insurance, HOA dues and upkeep.
If you're not retired yet and can afford a payment, a regular loan is often the better fit. See is a reverse mortgage a good idea.
Can I add my spouse to my reverse mortgage?
Not to the existing loan. To make a spouse a borrower, you'd refinance into a new HECM with both of you on it, and both of you must be 62 or older and meet the borrower rules. If you're not refinancing, find out whether your spouse was named as an eligible non-borrowing spouse at closing. See the non-borrowing spouse guide.
Is there a waiting period before I can refinance my reverse mortgage?
HUD's rules here focus on the cost test and the disclosure rather than a set waiting period. Lenders and investors can add their own requirements, so ask the lender in writing. In California, the 7-day wait after counseling applies to every reverse mortgage.
Do I have to pay off a second loan or other lien?
Usually. HUD says any existing lien that can't be placed behind the new HECM's liens must be paid off, along with the costs of the refinance.
For families
What happens to a reverse mortgage when a parent dies?
Does the bank own the house now?
No. A reverse mortgage is a loan with the home as security, like any mortgage. When the last borrower dies the loan comes due, and the family chooses to pay it, sell the home, or sign it over.
Can we just walk away?
If nobody wants the home, the servicer must accept a deed in lieu when the title is clear, and the loan is repaid from the home, not from the family's bank accounts. Doing nothing is different.
The servicer can start foreclosure after its deadline, and taxes and insurance stay the estate's job until the title transfers. Call early and pick a plan.
How long do we really have?
There are three clocks: 30 days from the date on the letter to tell the servicer your plan, the servicer generally must start foreclosure within about six months of the due date, and up to two 90-day extensions with proof and HUD's approval.
Don't count on a year. Someone must also have the legal right to sell or sign, such as an executor, trustee or heir who holds title. Not every California estate needs probate, so talk to an estate attorney early. I can't tell you how long probate takes. More in titles, trusts and probate.
Can I take over my mom's reverse mortgage?
No. HUD's guide for heirs lists paying it off, selling, or signing the home over. It doesn't offer a way to take over the loan. Many families pay it off with their own new loan. A surviving spouse has separate rules, described above.
Will our property taxes go up if I move into my parent's home?
If the home was your parent's main home and you make it your own main home within one year, California's Prop 19 may let you keep your parent's property tax base, up to a limit (the factored base value plus $1,044,586, for transfers Feb. 16, 2025 through Feb. 15, 2027).
You file with the county assessor: the homeowners' exemption within 1 year, and form BOE-19-P within 3 years. This covers property tax only, not the loan, and it is not tax advice.
My parents have a reverse mortgage. What should I do now?
Am I responsible for my parents' reverse mortgage?
No. Your parent is the borrower. Being their child, an authorized contact or their agent under a power of attorney doesn't make you owe the loan. A HECM is repaid from the home. When it comes due, the family can pay it off to keep the home, sell it, or sign it over. See keep, sell or walk away.
My parents have a reverse mortgage. Can they keep living there until they pass?
Yes, as long as they meet the loan terms: live there as their main home, pay property taxes, insurance and HOA dues, and keep the home in good repair. The loan can come due if those aren't met, or if the last borrower moves out for good. Watching those bills is the most useful thing a family can do.
Mom has passed and Dad lives there alone. Does the house have to be sold?
It depends on whether Dad is on the loan. If he's a co-borrower, the loan continues. If he isn't a borrower but was named as an eligible non-borrowing spouse at closing, he may be able to stay, with no more money paid out. If neither, the loan comes due. Call the servicer soon and see the non-borrowing spouse guide.
The reverse mortgage has used up almost all the equity. Does the bank already own the house?
No. Your parent still owns the home and can live there while meeting the loan terms. A high balance means less equity will be left when the loan is repaid. Because a HECM is non-recourse, the family won't owe more than the home is worth.
Can I pay off my parents' reverse mortgage?
Yes. A HECM can be paid off early, in full or in part, with no prepayment penalty. Ask the servicer for a payoff statement in writing. Paying a large amount for a parent can have gift tax and estate questions, so talk to a tax professional first. See getting out of a reverse mortgage.
My parents won't show me the papers. What can I do?
You can't make the servicer talk to you without your parent's permission, and that protects them. Ask gently, offer to sit in on a call, or suggest a HUD-approved housing counselor your parent can speak with alone. If you suspect someone is taking advantage of your parent, see protecting a parent.
Moving to care, living elsewhere part of the year, or renting a room
Does a reverse mortgage become due if the owner is moved into a nursing home?
Not in 30 days. A hospital or nursing-home stay does not call the loan by itself, and a stay in a health care facility of up to 12 months in a row still counts as living in the home under HUD's definition.
If the borrower is away more than 12 months in a row for illness and no other borrower lives there, the loan can be called due, with HUD's approval. If the move is permanent, the home may no longer be the main home, which can also make the loan come due.
Can I live somewhere warmer part of the year?
Short stays are allowed under California's absence rules, shown in the table above. The home still has to be your main home. Tell your servicer about any absence longer than 2 months, and ask what applies to your loan.
Can I rent out part of my house and still keep a reverse mortgage?
The home has to stay your principal residence, and your loan papers and your servicer decide what is allowed. Ask your servicer in writing before you rent any part of it or sign a lease.
If I end up in a nursing home, what happens to the reverse mortgage, and does it delay Medi-Cal?
The loan part is above. How Medi-Cal treats a home is a separate question that I can't answer. Talk with an elder-law attorney or a benefits advisor first. See the benefits guide.
A younger spouse who isn't on the reverse mortgage
What happens to a reverse mortgage when one spouse dies?
If another borrower still lives there, the loan continues. If the last borrower dies, the loan comes due unless an eligible non-borrowing spouse qualifies to defer. Then the spouse can stay while keeping up the taxes, insurance and upkeep.
Can my spouse stay in the home if they're not on the loan?
Possibly, if they're an eligible non-borrowing spouse: married at closing and still married, named in the loan documents, and living there. If they weren't named at closing, they can't qualify later.
I'm nervous about a reverse mortgage my husband wants. What should I do?
That's a fair reaction. You are part of the conversation: a non-borrowing spouse takes part in counseling. Ask the counselor and the lender what happens to you if he dies first. Ask the counseling agency whether family can sit in.
Does a non-borrowing spouse have to go to counseling?
Yes. HUD requires counseling for the borrower, any non-borrowing spouse (eligible or not) and any non-borrowing owner. The counselor is independent. See how counseling works.
Power of attorney and conservatorship for a reverse mortgage
Can a power of attorney get a reverse mortgage for my parent?
Yes, under HUD's rules, if it's a durable power of attorney that gives the agent specific authority to obligate your parent, and the agent completes HECM counseling. Your parent must still meet every borrower rule, and in California there's a 7-day wait after counseling before a final application.
What happens if my parent has dementia and no power of attorney?
If your parent can no longer understand and sign, a power of attorney can't be made. A conservator of the estate may be needed. In California, a conservator needs a court order to borrow against the home. Talk to an elder law attorney. The court's self-help center also explains the options.
Why would someone with a POA choose an adjustable-rate HECM?
Usually for the same reasons a borrower would: an adjustable-rate HECM can offer a line of credit or monthly payments, while a fixed-rate HECM is paid as one lump sum. The choice should fit your parent's needs. A counselor can explain the trade-offs. See ways to receive the money.
My mom has a reverse mortgage and is showing cognitive decline. What should we do now?
Talk with her about a durable power of attorney while she can still decide. Ask her to sign the servicer's third-party authorization form. Put the property tax, insurance and occupancy-letter dates on a family calendar.
Can a family challenge a reverse mortgage signed by someone who wasn't in their right mind?
That's a question for an attorney. HUD's rules say a borrower who lacks legal capacity can't sign the application, and someone with authority, such as a conservator or an agent under a durable power of attorney, must sign instead. If you suspect pressure or fraud, call Adult Protective Services. See protecting a parent.
Does the agent owe the reverse mortgage?
No. The borrower is your parent, and the loan is repaid from the home. Being the agent doesn't make you personally responsible for the loan.
Who has the title to a home with a reverse mortgage? Life estates, survivorship and trusts
Who has the title to a home with a reverse mortgage?
You do. The lender holds a lien on the home, like any mortgage, and you keep the title. When the loan comes due, you or your heirs pay it off, sell, or sign the home over.
Does adding my child to the title break the reverse mortgage?
It can affect the loan, taxes and benefits, so don't do it without asking the servicer in writing and an attorney. Your child doesn't become a borrower, and doesn't gain a right to stay after you.
Can I put my mom on my house title and get her a reverse mortgage?
A HECM borrower must be 62 or older, on title, and living in the home as their main home. Any other owner on title who isn't a borrower must get counseling and sign the mortgage.
When your mom, as the last borrower, dies or moves out, the loan comes due, even though you still own part of the home. Talk with a counselor and an attorney first.
Can a reverse mortgage be in a trust?
Yes, if the living trust meets HUD's rules, including that the primary beneficiaries are 62 or older, eligible borrowers who live in the home and complete counseling. The trust's name goes on the deed of trust.
Can my father leave me the home in his will even though it has a reverse mortgage?
Yes. The home passes to you with the loan still on it. When the loan comes due, you choose to pay it off, sell, or sign the home over. A HECM is repaid from the home, not from your own money. See keep, sell or walk away.
I pay my dad's taxes and insurance. Should my name be on the deed?
Helping pay doesn't require it, and adding your name has its own effects. Ask the servicer in writing and an attorney first. A power of attorney or a trust may do what you need without changing the deed.
Can heirs walk away from a reverse mortgage? Deed in lieu after a death
Can heirs walk away from a reverse mortgage?
Yes. The heirs or estate can sign the home over with a deed in lieu of foreclosure, and the servicer must accept it if the title is clear and it's recorded in time. The family doesn't owe the difference if the home is worth less than the loan. Tell the servicer in writing.
What happens if you walk away from a reverse mortgage without telling the servicer?
Doing nothing isn't the same as a deed in lieu. The servicer must start foreclosure within about 6 months of the due date unless HUD approves more time. The home is still taken, and the family gives up control of the timing and the larger incentive available for a deed in lieu.
Taxes and insurance stay the estate's job until the title transfers. See can you lose your home.
Can heirs do a short sale or deed in lieu on a reverse mortgage?
Yes, both. If the balance is higher than the home's value, heirs can sell for at least 95% of the current appraised value, and that satisfies the loan. Or they can sign the home over. Cash for keys may be offered for either, at the servicer's choice.
Will a deed in lieu hurt my credit?
The heirs aren't borrowers and aren't personally liable for a HECM, since it's repaid from the home. Ask the servicer how it reports the account, and keep its written confirmation that the loan is satisfied.
Who gets the home with a reverse mortgage if there are no heirs?
Someone with legal authority, such as an executor, an administrator or a trustee, still has to resolve the loan. If no one acts, the servicer can take the home through foreclosure. An estate attorney can explain how California handles an estate with no heirs.
Does a deed in lieu make sense before a parent moves into care?
Sometimes. If a living borrower moves out for good, the loan can come due, and the servicer's letter lists a deed in lieu as one option. But it gives up the home and any equity. Your parent may be able to sell instead and keep what's left.
Talk it over with a HUD-approved counselor and an elder law attorney first. See if your parent has a reverse mortgage.
Inheriting a house with a reverse mortgage: keep it, sell it, or walk away
Am I responsible for my parents' reverse mortgage after they die?
Not personally. A HECM is repaid from the home, and the lender can't collect the difference from you if the home is worth less than the loan. The estate still has to resolve the loan by paying it off, selling, or signing the home over.
Can heirs walk away from a reverse mortgage?
Yes. The family can sign the home over with a deed in lieu of foreclosure, and the servicer must accept it if the title is clear. Tell the servicer in writing. Don't just stop answering, because the servicer can then start foreclosure.
Can I take over or buy out my parents' reverse mortgage?
You can't take over the loan itself. You can keep the home by paying it off, usually with a new mortgage in your name. Ask the servicer in writing for the exact payoff figure. HUD's own materials describe it differently when the home is worth less than the balance, so get the number from the servicer.
Would heirs owe the balance if it's more than the home is worth?
No. If the home sells for at least 95% of its current appraised value (or the balance, if less), the loan is satisfied and FHA insurance covers the rest. That insurance protects the lender. Your family keeps nothing from the sale in that case, but owes nothing either.
How long do you have to sell a house with a reverse mortgage after death?
Think of about six months from the due date, with 30 days from the servicer's letter to say your plan. Up to two 90-day extensions are possible with proof you're selling or paying off and HUD's approval. See the full timeline.
Will my property taxes go up if I keep my parent's house?
If it was your parent's main home and you make it your main home within one year, Prop 19 may let you keep their tax base, up to the limit above. If you rent it out or don't move in, it is generally reassessed. Ask your county assessor.
Can a reverse mortgage be in a trust? Title, wills, probate and power of attorney
Can a reverse mortgage be in a trust?
Yes, for a HECM, if the living trust meets HUD's rules: the primary beneficiaries are 62 or older, live there, go to counseling and qualify as borrowers, the trust gives them a lifetime right to live there, and no new beneficiaries are added. Private loans set their own trust rules.
Who has the title to a home with a reverse mortgage?
You do, or your trust does. The lender holds a lien, not the title. The CFPB says the title remains in your name.
Does adding my child to the title break the reverse mortgage contract?
HUD's rule makes the loan due if a borrower conveys all of their title and no other borrower keeps title. Keeping your own share isn't that trigger. But a deed change has tax and legal effects, so talk to an estate attorney and tell your servicer in writing first.
Can I put my mom on the house title and get a reverse mortgage?
Every HECM borrower must be on the title, be 62 or older, and live there as their main home. Anyone else who stays on title must go to counseling and sign the mortgage. Changing title just to qualify has big legal and tax effects. Talk to an attorney and a counselor first. See who qualifies.
Can my father will me the home even though he has a reverse mortgage?
Yes. You inherit the home, and the loan must be repaid when he dies. You can keep it by paying it off (often with a new loan), sell it, or sign it over. You never owe more than the home is worth. See keep, sell or walk away.
How long does a reverse mortgage go through probate?
The loan doesn't wait for probate. The servicer's 30-day notice and roughly six-month foreclosure timeline run while probate is open, with up to two 90-day extensions if HUD approves. Tell the servicer probate is open, send proof, and keep taxes and insurance paid.
Why might someone with a power of attorney apply for a reverse mortgage?
An agent under a durable power of attorney can apply and sign for a borrower, if the document gives specific authority and the agent goes to counseling. The agent must act for the borrower, not themselves. The CFPB has free guides for agents.
Do I need to remove a deceased spouse from the title?
If both spouses were borrowers, the loan continues for the surviving borrower who lives there. Clearing the late spouse's name from title usually takes a recorded document. Ask a title company or estate attorney how to do it, and send the servicer a copy of the death certificate.
Reverse mortgage scams: protecting a parent from fraud, pressure and dementia risks
Are reverse mortgages scams?
No. A reverse mortgage is a regulated loan, and for some homeowners it's a reasonable choice. The scams are the pitches around it: pushing annuities or investments, contractors pitching it for repairs, fake government mail, and pressure to sign fast.
The CFPB has also fined lenders for ads that left out how the loan works. See is a reverse mortgage a good idea?
How do I check whether my parent with early dementia is being targeted by a reverse mortgage pitch?
Look for new people calling about the house, brochures or mail you don't recognize, talk about annuities or investments, urgency, and requests to keep family out. Ask your parent, gently, who they've been talking to. If someone is pushing hard, call APS, and talk to an elder law attorney about a power of attorney.
My mom has had a reverse mortgage for years and is showing cognitive decline. What happens now?
The loan stays in place as long as she lives in the home and meets the loan terms. Someone needs to keep the property taxes, insurance and upkeep paid and answer the yearly occupancy certification.
If she moves to care for more than 12 months in a row and no other borrower lives there, the loan can come due. An elder law attorney can help set up the legal authority to act for her.
Is there a legal way to challenge a reverse mortgage someone signed when they may not have been in their right mind?
Possibly. That's a legal question that depends on the facts, so talk to an elder law attorney as soon as you can. Gather the loan papers, the counseling certificate, medical records from that time, and notes on who was involved.
We think someone committed reverse mortgage fraud. What can we do?
Report it to your county APS and the police, and file complaints with California's DFPI (lenders), the CFPB, and the FTC. Tell the loan servicer, too. Keep copies of everything, and talk to an elder law attorney.
My mother-in-law wants a reverse mortgage. Should we try to stop her?
It's her decision. Help her make it well: offer to join the meetings, make sure she picks her own independent counselor, ask her to explain the loan back to you, and compare other options. If you see pressure or a tie-in to an annuity or investment, that's when to step in and report.
Honest answers
Is a reverse mortgage a good idea? Honest answers, both sides
What is the biggest downside of a reverse mortgage?
For most families, it's that the balance keeps growing. Interest, mortgage insurance and fees are added every month, so the equity left for you and your heirs shrinks over time. The second is that you must keep paying taxes, insurance and upkeep for as long as you have the loan, or it can come due.
Are reverse mortgages a scam?
No. A reverse mortgage is a legal loan with strong rules, including independent counseling and, in California, a 7-day wait before any final application or fee. But scams do grow up around them.
The FTC warns about high-pressure sales, contractors who pitch a reverse mortgage to pay for repairs, and anyone pushing you to buy an annuity or investment with the money. If someone rushes you, walk away.
Is a reverse mortgage a good idea if you have no heirs?
It can remove one of the biggest downsides, since there's no one counting on the home's value. The other downsides still apply: the costs, the obligations, and the loan coming due if you move to a care home for more than 12 months in a row. Think about who will help you handle the home and the loan later on.
Can you outlive a reverse mortgage?
With the "tenure" payment option, a HECM pays monthly for as long as you live in the home as your main home and meet the loan terms. A lump sum or line of credit can be used up, though. And the loan comes due if you move out for good or don't keep up taxes, insurance and repairs.
Should my parents get a reverse mortgage?
It depends on whether they plan to stay, whether they can keep paying the home's bills, and what the family expects about inheritance. Family members are welcome at counseling, and a good first step is for everyone to read the downsides together. The decision is your parents' to make. If your parent already has one
Is a reverse mortgage a good idea for a short-term cash need?
Usually not. The CFPB says that if there's a good chance you'll sell in the next couple of years, a loan with lower upfront costs, like a HELOC, may make more sense than one with higher upfront costs, like a reverse mortgage.
From Tom: My goal, in his words: "make sure that the people that I do business with really understand what it is they're doing, and they're happy about it, and they make an honest, educated decision that it's what they want."
Can you lose your home with a reverse mortgage? Taxes, insurance and getting more time
Can a reverse mortgage company take your house?
Not just because time passes or the balance grows. The loan comes due when the last borrower dies, sells, moves out for good, is away more than 12 months in a row for illness, or doesn't meet the loan terms. If the loan comes due and isn't repaid, the servicer can foreclose, like with any mortgage.
Can a reverse mortgage foreclose on you, and how do you stop it?
Yes, if the loan terms aren't met. To stop it, call the servicer early, ask for a repayment plan, ask about the At-Risk extension if it fits, and talk to a HUD-approved counselor. A borrower can usually catch up and reinstate the loan, even after foreclosure has started.
How can people with reverse mortgages be facing foreclosure? I thought you got to stay until you died.
You can stay only as long as you live there as your main home and meet the loan terms. Foreclosures on living borrowers often come from unpaid property taxes or insurance, or the home no longer being the main home. That's why keeping those bills paid, or using a set-aside, matters so much.
What happens if I fall behind on property taxes with a reverse mortgage?
The servicer may pay the taxes, add the amount to your balance, and contact you. Ask about a repayment plan right away. If the amount behind is more than $5,000, or the problem isn't fixed, the servicer can ask HUD to call the loan due. More in behind on taxes or insurance.
Can my heirs lose the house?
After the last borrower dies, the loan comes due. Heirs can pay it off, sell the home, or sign it over. If they do nothing, the servicer can foreclose after its deadlines. Because the loan is non-recourse, heirs don't owe more than the home is worth. See after a parent dies.
I got a foreclosure notice. Is it real?
I can't tell from here. Call your servicer using the number on your monthly statement, not the one on the letter, and ask a HUD-approved counselor to look at it with you.
Before a reverse mortgage: HELOC, home equity loan, selling or downsizing
Is a reverse mortgage the same as a HELOC?
No. Both use your home's value, but a HELOC needs monthly payments once you borrow, and the lender can freeze or cut it in some cases. A HECM reverse mortgage has no required monthly mortgage payment (taxes, insurance, HOA dues and upkeep stay yours), it's for homeowners 62 and older, and its balance grows until the loan is repaid.
Is a reverse mortgage better than a home equity loan?
Neither is better for everyone. A home equity loan needs a monthly payment, but the balance goes down and more is likely left for your heirs.
A reverse mortgage has no required monthly mortgage payment (you still pay property taxes, insurance, HOA dues and upkeep), but the balance grows, and the upfront costs are usually higher. It comes down to your budget, how long you'll stay, and what you want to leave your family.
Is it better to sell the house and downsize, or get a reverse mortgage?
If the home is more than you need or the upkeep is getting hard, selling may be the better fit, and Prop 19 may let you keep your property tax base if you're 55 or older.
If you love the home, plan to stay for years, and can keep up the bills, a reverse mortgage lets you stay while you use some of your equity.
What is the cheapest way to borrow against your house?
It depends on the rates and costs you're offered, so get them in writing. The CFPB says reverse mortgage closing costs are typically higher than for other loans and suggests a lower-upfront-cost option such as a HELOC if you might sell within a couple of years. The FTC says single-purpose reverse mortgages are the least expensive kind, where they're offered.
Can you get a HELOC if you have a reverse mortgage?
HUD's HECM rules allow other liens on the home only if they come second to the HECM. Ask your servicer before you apply for any other loan.
What is a better option than a reverse mortgage for my retired mom?
Here's what I'd ask first: what does she need the money for? If it's property taxes, look at Property Tax Postponement. If it's one repair, look at local repair programs. If she can make a payment, compare a HELOC or home equity loan.
If she wants to move, compare selling. A HUD-approved counselor can go through all of these with her, and family members are welcome at the session.
Protecting a parent From Tom: "If a family can afford to make the payment and they're not in a retirement situation yet, then there's no need for them to go into a reverse." A reverse mortgage's balance grows over time, and a regular loan may have a similar or lower rate.
It tends to fit better when you're retired or living on a limited income.
Property Tax Postponement or a reverse mortgage?
Can I get Property Tax Postponement if I already have a reverse mortgage?
That's a question for the State Controller, because I haven't seen the Controller's answer for homes that already have a reverse mortgage. Call (800) 952-5661 and ask before you plan on it. What the law does say is that choosing a reverse mortgage makes postponed taxes due.
Can I take out a reverse mortgage after I postpone my taxes?
Be ready to repay everything you postponed. Under California law, choosing a reverse mortgage makes all postponed taxes due (Gov. Code 16190(f)), and refinancing does too (16190(e)). HUD's HECM rules also bar a borrower from joining a tax deferral program or allowing liens unless they come second to the HECM.
Ask the Controller what you'd owe, and talk to a lender before you decide.
Is there interest on the postponed taxes?
Yes. The state adds simple interest of 5% a year (not compounded) to the amounts postponed from July 1, 2020, and records a lien on the home.
When do I have to pay the postponed taxes back?
When you move out, sell or transfer the home, or die (unless a surviving spouse inherits and stays), when you let current taxes go delinquent, when you refinance, or when you choose a reverse mortgage.
Is the "Form 1098-SR" that freezes property taxes real?
No. The Sonoma County Assessor and Tax Collector, a California county tax office, warned on Aug. 19, 2026 that there is no IRS Form 1098-SR, and that false claims about it are targeting seniors. If someone contacts you, hang up and call your county assessor. See protecting a parent from pressure and fraud.
What other ways are there to lower a property tax bill?
Your county assessor can tell you which property tax exemptions and programs apply to you. I can't give tax advice.
What a reverse mortgage really costs
How much does a reverse mortgage cost?
For a HECM: 2% of the maximum claim amount for upfront mortgage insurance, an origination fee HUD caps at $6,000 (a lender may charge less), and third-party closing costs, plus interest and 0.5% a year in mortgage insurance on the balance over time.
Your exact costs depend on your home's value, the lender and the rate. Ask for them in writing.
What are the origination and closing costs on a reverse mortgage?
The origination fee is the greater of $2,500 or 2% of the first $200,000 of the maximum claim amount plus 1% above that, capped at $6,000 under HUD's rule; a lender may charge less. Closing costs paid to others include the appraisal, title, recording and credit report.
Why is there mortgage insurance on a reverse mortgage?
It pays for FHA insurance, which protects the lender. Because of it, the loan is non-recourse: neither you nor your heirs owe more than the home is worth when the loan is repaid.
How does interest grow on a reverse mortgage?
Interest and yearly mortgage insurance are added to the balance each month, and the next month's interest is charged on the larger balance. So the balance grows faster each year. Paying some of it back, or drawing only what you need, slows that growth.
What ongoing fees come with a reverse mortgage?
Interest, the 0.5% yearly mortgage insurance, and possibly a monthly servicing fee if it isn't built into the rate. Property taxes, homeowners insurance, HOA dues and upkeep aren't loan fees, but you must keep paying them. See can you lose your home?
Are reverse mortgages more expensive than a regular mortgage?
The upfront costs are usually higher, mostly because of the 2% mortgage insurance. The trade-off is that there's no required monthly mortgage payment, though property taxes, insurance, HOA dues and upkeep stay yours. Whether that's worth it depends on how long you'll stay and what else you could do. See is a reverse mortgage a good idea? and the alternatives.
Will a reverse mortgage affect SSI or Medi-Cal?
Does a reverse mortgage count as income?
For California means-tested programs, payments from a reverse mortgage count as loan proceeds, not income. That rule gives way to federal law where the two conflict. Check your own programs with a benefits advisor.
How does a reverse mortgage affect Medi-Cal?
California's rule is limited by federal Title 19 for Medi-Cal. I can't tell you how it will work for you, so ask a benefits advisor or an elder-law attorney.
If I end up in a nursing home, does a reverse mortgage delay Medi-Cal?
I can't answer that from the sources behind this page, and I won't guess. It depends on Medi-Cal rules for your home and your situation, so please ask an elder-law attorney. See also moving to care and the occupancy rules.
What about Social Security and Medicare?
The FTC says a reverse mortgage "won't affect your Social Security or Medicare benefits." SSI is separate and looks at income and savings. The Social Security Administration's staff manual treats loan proceeds as not income, but cash you keep past the month you receive it can count as a resource. Ask SSA or a benefits advisor about your own case.
Do I pay income tax on reverse mortgage money?
Loan proceeds generally aren't taxable income. Talk to a tax advisor about your own situation.
Are reverse mortgages a scam? 10 myths, the real downsides and the red flags
Are reverse mortgages scams?
No. A reverse mortgage is a regulated loan. The scams are the pitches around it: fees to arrange the loan, annuity sales, contractors, fake government mail and pressure. The loan has real costs and risks, so learn them before you decide.
Why are reverse mortgages bad?
They aren't bad for everyone, but they have real downsides: higher upfront costs, a balance that grows, less left for heirs, and foreclosure risk if taxes, insurance or upkeep go unpaid. For someone who isn't retired and can afford a regular payment, there's usually no need for one.
Who owns the house in a reverse mortgage?
You do. The title stays in your name, or your trust's. The lender has a lien that is paid off when the loan ends. See titles, trusts and probate.
Will my heirs get stuck paying off a huge debt?
No. A HECM is non-recourse: heirs never owe more than the home is worth, and the debt is repaid from the home, not their savings. They can keep it by paying it off, sell it, or sign it over. See keep, sell or walk away.
Will my parents end up selling the house for a fraction of what it's worth?
Not because of the loan itself. When the loan ends, the home can be sold at market value, the loan is paid, and any equity left goes to the borrower or heirs. If the balance is more than the home's value, HUD lets heirs sell for 95% of appraised value and owe nothing more.
Are reverse mortgage ads telling the whole truth?
Not always. The CFPB found ads that made the loan look like a risk-free government benefit and left out the bills borrowers must keep paying. Read the full terms, the cost disclosures, and the counselor's explanation, not the ad.
Reverse mortgage fees and mortgage insurance (MIP), line by line
What does the annual MIP on a reverse mortgage equal?
On a HECM, 0.5% a year of the outstanding loan balance, charged monthly (one-twelfth of 0.5%) from closing and added to the balance. Because the balance grows, the dollar amount grows too.
What fees come with a reverse mortgage?
For a HECM: 2% upfront mortgage insurance, 0.5% yearly mortgage insurance, an origination fee HUD caps at $6,000 (a lender may charge less), third-party closing costs, interest, and possibly a monthly servicing fee, which HUD caps at $30 or $35 for every HECM (not a quote).
Counseling may have a fee, but no one can be turned away for inability to pay.
Why is there mortgage insurance on a reverse mortgage, like an FHA loan?
A HECM is FHA-insured. The premiums pay for insurance that protects the lender and makes the loan non-recourse, so neither you nor your heirs owe more than the home is worth.
Can the lender pay my mortgage insurance or closing costs?
HUD allows a lender to pay part or all of the upfront premium, and lenders may charge less than the origination fee cap. Whether a lender offers that depends on the loan and the day. Ask for it in writing.
What fees can a reverse mortgage servicer charge?
Only what HUD allows: the servicing charge in the rate or a flat fee up to HUD's maximum, plus certain reasonable charges after closing, like a stopped foreclosure's legal costs. Ask for any charge to be explained in writing. If you can't resolve it, you can file a complaint with the CFPB.
What is the average fee for a reverse mortgage?
I won't give an average, because costs depend on your home's value, the lender and the day. What's fixed is HUD's formula: 2% upfront mortgage insurance on the maximum claim amount, 0.5% a year after, and an origination fee cap of $6,000.
Reverse mortgage credit and income requirements: what lenders check, and how
What credit score do you need for a reverse mortgage?
For a HECM, none. HUD's handbook says credit scores aren't used. The lender reviews your payment history, property tax and insurance history, income and expenses instead. Private loans may use scores; ask.
Can you get a reverse mortgage with bad credit?
Sometimes. If your history isn't satisfactory and there's no documented hard season, HUD requires at least a fully funded set-aside for taxes and insurance, which lowers what you can borrow. If the numbers still don't work, the loan may not go forward.
What are the income requirements for a reverse mortgage?
There's no set minimum. Your income, minus your regular expenses, should meet HUD's residual income standard for your household size and region. Income must be likely to continue three years, and savings can count through HUD's formula.
Can you get a reverse mortgage if you have other debt?
Yes. Your existing mortgage is paid off at closing. Other debts are counted as monthly expenses. Court judgments and delinquent federal debts must be resolved, and HUD lets the lender consider whether the HECM money would pay off debts.
Can I get a reverse mortgage if I owe back taxes?
Delinquent property taxes are usually paid from the loan at closing. Back federal income taxes must be paid, or you need an IRS repayment plan with at least three months of on-time payments.
Do I need a job to qualify?
No. Social Security, pensions, retirement withdrawals and other steady income count, and savings can be counted through HUD's formula.
Reverse mortgage insurance in California: fire, earthquake, flood and the FAIR Plan
Do I need earthquake insurance with a reverse mortgage?
HUD's HECM rules don't name earthquake insurance as required. Your loan papers say which hazards you must insure against, so check them and ask your servicer in writing. Homeowners insurance in California doesn't cover earthquake damage, so it's a choice worth weighing.
Who keeps paying the property taxes and homeowners insurance on a reverse mortgage?
You do, unless you have a fully funded set-aside or chose to have the servicer pay them from the loan. Either way the cost is yours, and payments made from the loan are added to your balance. HOA dues and upkeep are always yours.
My parents can't get anyone to insure their house. What now?
Have a licensed broker check other companies, then apply to the California FAIR Plan, the state's insurer of last resort, and add a difference in conditions policy if needed. Tell the servicer right away, in writing, and send proof the day coverage starts. If there's a gap, the servicer can buy insurance and add the cost to the balance.
Is the California FAIR Plan enough for a reverse mortgage?
It covers fire and other basic hazards, not liability or theft. Ask your servicer in writing whether a FAIR Plan policy, alone or with a difference in conditions policy, meets your loan's insurance terms.
What happens if my homeowners insurance lapses on a reverse mortgage?
After written notices, the servicer can buy lender-placed insurance at your cost and add it to your balance. If no loan funds are left and you can't repay it, the servicer can ask HUD to call the loan due. Show proof of coverage and the servicer must cancel the policy and refund the overlap.
Do I need flood insurance?
Only if the home is in a FEMA Special Flood Hazard Area, which your lender checks. If FEMA remaps your home into one, flood insurance becomes required.
How it works
Reverse mortgage counseling near Diamond Bar
Do I have to finish counseling before I talk to a lender?
No. Federal rules actually have the lender hand you the counselor list at first contact. What you can't do before counseling and the 7-day wait is give a final application or pay any fee.
Can my kids join by phone?
California allows counseling by phone if the applicant chose that. Whether a family member can join is up to the agency, so ask when you book.
What if my spouse isn't on the loan?
They still need to be counseled. The rule covers any spouse who is not a borrower, and any other owner who is not a borrower.
Can I pick any counselor?
Yes, as long as the counselor is HUD-approved for reverse mortgage (HECM) counseling. I give you a list, but New American Funding does not choose or pay the counselor, and I don't steer you to one.
What if I can't afford the fee?
HUD's rule is that a client must not be turned away because of an inability to pay. If your household is under 200% of the federal poverty level, you shouldn't be asked to pay at the session, though the agency can charge the fee at closing if it disclosed that to you. Ask the agency about its fee policy when you call.
How a reverse mortgage works in California, step by step
Is a HECM the same as a reverse mortgage?
A HECM (Home Equity Conversion Mortgage) is the FHA-insured kind of reverse mortgage. Other kinds exist that are not FHA-insured. This page is about the HECM. Through New American Funding, I can also offer private reverse mortgages such as HomeSafe and HomeSafe Second. See the types of reverse mortgages.
What do I pay each month?
There is no required monthly mortgage payment. You still pay property taxes, homeowners insurance, HOA dues and upkeep.
Can I pay it off early?
Yes. California reverse mortgages have no prepayment penalty. You can also choose to pay toward the balance while you have the loan. See getting out.
Can I outlive a reverse mortgage?
The loan doesn't come due just because time passes. It comes due for the reasons listed above. The balance does grow with interest and fees, so less equity is left over time. The CFPB advises planning for a long life so you don't use up your equity too early.
Will it affect my SSI or Medi-Cal?
Loan proceeds generally aren't income, but money you hold can affect SSI or Medi-Cal. Check with a benefits advisor before you decide. The California worksheet asks about benefits for this reason.
What could keep me from qualifying?
Being under 62, the home not being your main home, delinquent federal debt the loan can't pay off, or the results of the financial assessment. That is not the full list, and I can tell you early whether you meet the basics.
Who qualifies for a reverse mortgage, and why people are denied
What are the requirements for a reverse mortgage?
For a HECM: the youngest borrower is 62 or older, the home is your main home, you have enough equity to pay off any existing mortgage, you meet with an independent HUD-approved counselor, you pass the lender's Financial Assessment, and the home meets FHA's property rules. You also keep paying property taxes, insurance, HOA dues and upkeep.
What is the minimum age for a reverse mortgage?
62 for a HECM, based on the youngest borrower at closing. Some private loans start at 55 in California, including HomeSafe and HomeSafe Second.
How much equity do you need for a reverse mortgage?
HUD doesn't set one percentage. The loan has to be large enough to pay off what you owe, plus closing costs and any required set-aside. Younger borrowers and higher interest rates mean less can be borrowed, so more equity is needed.
What would disqualify me from getting a reverse mortgage?
The most common reasons are not enough equity, a Financial Assessment that shows taxes and insurance are unlikely to stay paid, a home that doesn't meet FHA rules (such as an unapproved condo), the home not being your main home, or unresolved federal debt.
Can you get a reverse mortgage on a condo or a mobile home?
A condo, yes, if the project is FHA-approved or the unit gets Single-Unit Approval. A manufactured home generally must be built on or after June 15, 1976, to the federal code, sit on a permanent foundation, be classified as real estate (it doesn't have to be taxed as real estate), be at least 400 square feet, and have been moved only once, from the factory or dealer to its site.
You must own the land or have a qualifying lease. Homes built before then (often called mobile homes) don't qualify for a HECM.
Is there an income requirement or a minimum credit score?
There's no set income minimum or single credit score in HUD's rule. The lender looks at your credit history and whether your income covers your expenses, including property taxes and insurance. A weak history may mean a set-aside, or in some cases a denial.
How much can you get from a reverse mortgage? What decides it, and the line of credit
How much can you get from a reverse mortgage?
It depends on the youngest borrower's age, the expected interest rate and your home's value, up to HUD's limit of $1,249,125 for case numbers assigned in 2026. HUD's tables turn those into a percentage. Then anything you owe, closing costs and any set-aside come out, and only a lender's written quote gives your actual amount.
What is the 60% rule in a reverse mortgage?
In the first 12 months, HUD generally lets you take up to 60% of your principal limit, or your required closing costs and payoffs plus 10% of the principal limit, whichever is greater. On an adjustable-rate HECM, the rest becomes available after the first year.
How much would I get if I still owe on my house?
What you owe is paid off at closing from the loan, so it reduces what's left for you. If you owe more than the loan can cover, you'd need to bring cash to closing, or a reverse mortgage may not work.
Is there a reverse mortgage calculator without personal information?
Some sites offer them, but without your home's appraised value, your rate and your payoffs, the result is only a rough estimate. The real number comes from a lender's written quote.
Does a reverse mortgage line of credit really grow?
On an adjustable-rate HECM, yes. The unused part grows each month at the loan's interest rate plus the mortgage insurance rate. It's more room to borrow, not money paid to you, and anything you draw adds to your balance.
What is the maximum amount for a reverse mortgage?
For a HECM, HUD caps the home value used in the math at $1,249,125 for case numbers assigned in 2026. That's a cap on value, not a loan amount; you can borrow only a percentage of it. Private loans have their own limits.
The types of reverse mortgages, explained with examples
What are the three types of reverse mortgage?
The FTC lists three: the FHA-insured HECM, proprietary (private) reverse mortgages, and single-purpose reverse mortgages from some government agencies and nonprofits. A HECM can also be used to refinance a mortgage or buy a home.
Which type is the most common?
The HECM. It's FHA-insured, and the money can be used for any purpose.
Is a proprietary reverse mortgage a kind of HECM?
No. HECM is the name of HUD's FHA-insured program. Proprietary (private) reverse mortgages work in a similar way but have their own rules, and the companies that offer them say they are not part of the HECM program.
Can I get a reverse mortgage before 62?
Not a HECM. Some private reverse mortgages start at 55 in California, including HomeSafe and HomeSafe Second.
Do I need counseling for every type?
In California, the law requires independent counseling and a 7-day wait before a final application or fee on any reverse mortgage, not just HECMs.
How you can receive the money: lump sum, monthly payments or a line of credit
Which option is right for me?
It depends on what you need the money for. People paying off a mortgage often take more at closing; people who want a safety net often choose a line of credit. A counselor can walk you through how each one plays out for you.
Does the line of credit really grow?
On an adjustable-rate HECM, yes: the amount you can borrow grows each month at the loan's interest rate plus the mortgage insurance rate. It's room to borrow more later, not money paid to you.
Do monthly payments stop if I go into care?
They can. If you're away more than 12 months in a row because of illness and no other borrower lives there, the loan can become due, and payments stop. See moving into care.
Can I take a lump sum and a line of credit together?
Not with a fixed-rate HECM, which is a single lump sum. With an adjustable-rate HECM, you can take some money at closing (within HUD's first-year limit) and keep the rest in a line of credit.
After closing: who services your reverse mortgage and what your papers should show
Who services my reverse mortgage, and how do I get help?
Your servicer's name and phone number are on every monthly statement. A HECM servicer must give you a number for staff assigned to HECM questions and remind you of it each year. If servicing changes, you'll get a written transfer notice.
Can you make payments on a reverse mortgage?
Yes. There's no required monthly mortgage payment, but you can pay part or all of the balance any time with no prepayment penalty. Paying down interest can slow how fast the balance grows. You still pay property taxes, insurance, HOA dues and upkeep.
How do reverse mortgage payments and draws work?
For a HECM, monthly payments arrive on the first business day of each month, and line of credit money must be sent within five business days of a written request. Every payment or draw adds to your balance.
What fees can a reverse mortgage servicer charge?
HUD limits them. A servicing fee, if any, is set at application. Other post-closing charges are limited to items HUD allows, such as up to $20 to change your payment plan or certain foreclosure-related costs. Ask in writing about any fee you don't recognize.
What happens when my reverse mortgage is sold to another company?
Your loan terms stay the same. You'll get a written notice with the new servicer's name, address and phone number, generally at least 15 days before or within 15 days after the change. Confirm it by calling the number on your last statement.
Do I have to answer the yearly occupancy letter?
Yes. It's how the servicer confirms the home is still your main home. Not answering it can lead to the loan being called due.
How to get out of a reverse mortgage: cancel, pay off early, refinance or sell
How do you get out of a reverse mortgage?
Cancel it within three business days of closing (most loans that aren't purchases), pay it off with cash or savings, refinance it into another loan, or sell the home and pay it from the sale. There is no prepayment penalty on a HECM or on any California reverse mortgage.
Can a reverse mortgage be reversed or undone?
Yes, two ways. In the first three business days after closing you can cancel in writing and get your money back. After that, you "undo" it by paying it off, either from savings, a new loan or a sale.
Can you pay off a reverse mortgage early?
Yes, at any time, in full or in part, without a penalty. Ask the servicer for a written payoff first, because the balance includes interest, mortgage insurance and fees, not just what you drew.
Can you refinance a reverse mortgage?
Yes. You can refinance into a regular mortgage (which brings back a monthly payment and needs income and credit approval) or into a new HECM, which must give you a meaningful increase over its costs under HUD's rules. Either one is a full new loan with its own costs.
Can you sell a house with a reverse mortgage?
Yes. The loan is paid off at closing from the sale, and what's left after the payoff and selling costs is yours. If the home is worth less than the balance, a HECM's non-recourse rule means you don't pay the difference from your other savings. Ask the servicer about HUD's sale rules first.
Do I get my house back after I pay it off?
You never gave it up. With a reverse mortgage, you keep the title, and the lender holds a lien, like any mortgage. When the loan is paid, the lien is released. Ask the servicer to confirm it's recorded with the county.
Which homes qualify for a reverse mortgage: condos, manufactured homes, ADUs and repairs
What condition must the house be in for a reverse mortgage?
It must be safe, sound and secure under HUD's Minimum Property Requirements, with working basics like water, heat, a bathroom and a kitchen area. Health and safety problems must be fixed before closing. Smaller repairs, up to 15% of the maximum claim amount, can often be done within 12 months after closing using a repair set-aside.
Can you get a reverse mortgage on a condo?
Yes, if the project is FHA-approved, the unit gets Single-Unit Approval, or it's a site condo. You keep paying HOA dues, property taxes and insurance, and the balance grows over time.
Can you get a reverse mortgage on a mobile home or manufactured home?
A manufactured home can qualify if it was built on or after June 15, 1976, has a HUD label, sits on a permanent foundation, is classified as real estate, and was moved only from the factory or dealer to its site.
Older mobile homes and homes moved after their first setup don't qualify for a HECM. You must own the land or have a long enough lease.
Can I get a reverse mortgage on a duplex or a home with a granny flat?
Yes. A HECM can be on a home with up to four units if you live in one. A single-family home with one ADU counts as one unit. You can rent the other units.
My mom's paid-off house needs repairs, like a new heater. Is a reverse mortgage the answer?
It can be one way to pay for repairs the appraisal requires, through a repair set-aside, and some families use loan money for other upkeep. But the balance grows, and she'll still owe taxes, insurance and upkeep. Compare other choices too: see alternatives and is a reverse mortgage a good idea?
Can you get a reverse mortgage on a co-op?
Not a HECM. FHA won't insure HECMs on cooperative units. Ask whether a private (proprietary) loan is available; those set their own rules.
Reverse mortgage appraisal: what happens and what can go wrong
My parents' appraisal came in low. What can we do?
Gather facts: recent sales of similar homes nearby and any errors in the report. Give them to the loan officer and ask for a reconsideration of value. The underwriter decides whether to send it. A lender can't order a new appraisal just to get a higher number.
If the loan still doesn't work, ask about other options, including a private loan, which sets its own rules. See alternatives.
Who pays for a reverse mortgage appraisal?
You do. The lender orders it and pays the appraiser, then charges you a reasonable amount, no more than it paid. In California, no fee can be charged until 7 days after counseling. Some lenders collect it upfront after that, others at closing.
How long is a reverse mortgage appraisal good for?
For a HECM, 180 days from the inspection date. An update can extend it to one year from the original appraisal date, if the home hasn't lost value.
Why do I need a second appraisal?
FHA's automated collateral risk assessment decides when more support for the value is needed. A different appraisal company does it, you may pay for it (it can be financed), and the lower value is used.
Do I get a copy of the appraisal?
Yes, free, promptly once it's done or at least three business days before closing, whichever is earlier, even if the loan doesn't close.
Does the lender inspect the house after I sign?
There's no routine new appraisal during the loan. But keeping the home in good repair is one of your loan terms. If your servicer finds the home has deteriorated, HUD's rules give you 60 days to start repairs before the loan can be called due. Once a loan is due, the servicer must check monthly whether the home is vacant.
Problems with your reverse mortgage servicer, and where to complain
How do I file a complaint with my reverse mortgage servicer?
First, send the servicer a written notice of error to its special address. If its answer doesn't fix the problem, file a complaint with the CFPB online or at (855) 411-2372. For a HECM servicer that doesn't pay you what's owed, contact HUD at 1-800-CALLFHA. For a California-licensed company, you can also file with DFPI.
Who do I call if my reverse mortgage servicer won't help?
Write to the servicer first, so deadlines start. Then the CFPB for most problems, HUD for a HECM payment problem, and a HUD-approved counselor for help reading letters (ask about any fee).
The servicer keeps rejecting our documents for Mom's repayment plan. What can we do?
Ask in writing exactly which document is missing or wrong and why, using a request for information. Send copies with a cover letter listing each one. A HUD-approved counselor can help you put the package together. If you're still stuck, file a CFPB complaint and attach your letters. See behind on taxes or insurance.
Are there a lot of complaints about reverse mortgages?
Fair question. The CFPB's public database lists reverse mortgage complaints. The common categories are trouble during the payment process, struggling to pay, closing, and applying. A complaint shows a problem someone reported, not that the company was wrong.
What happens when my reverse mortgage is sold to another company?
Your loan terms stay the same. You should get a written transfer notice with the new servicer's contact information. Problems after transfers are a common complaint, so compare your first statement from the new servicer with the last one from the old servicer, and write right away if anything is off.
Can I complain for my parent?
Yes, as an authorized representative. The servicer needs a signed authorization, power of attorney or other legal papers before it can talk with you about the loan.
Near Diamond Bar
Reverse mortgages in Diamond Bar: counseling, tax and senior help
Where can I get reverse mortgage counseling near Diamond Bar, and can my kids join by phone?
HUD lists agencies in San Bernardino, Orange and Riverside counties, and most counsel by phone or video. California allows counseling by phone if the applicant chose that. Whether a family member can join is up to the agency, so ask when you book.
Can I postpone my California property taxes if I have a reverse mortgage?
That's a question for the Controller, so call (800) 952-5661 before you plan on it. What California law does say is that if you choose a reverse mortgage after postponing taxes, all the postponed taxes become due. Refinancing does too.
Is the "Form 1098-SR" that is supposed to freeze my property taxes real?
No. The Sonoma County Assessor and Tax Collector, a California county tax office, warned in August 2026 that there is no IRS Form 1098-SR. If someone contacts you about one, hang up and call your county assessor.
Can you recommend a reverse mortgage specialist near Diamond Bar who explains things clearly and doesn't pressure you?
I can't rate myself, so here is what I'd look for in anyone. Expect to meet an independent counselor before you apply. Expect no one to push other financial products along with the loan. Look up any loan officer's license on NMLS Consumer Access.
I'm Tom Jarboe, NMLS #210600, and I'm glad to be one of the people you talk to, with no pressure.
Reverse mortgages in Walnut: counseling, the senior center and tax help
Where can I get reverse mortgage counseling near Walnut, and can it be in Chinese?
HUD lists agencies in Orange, Ontario, Rancho Cucamonga and Riverside, and most counsel by phone. None near Walnut lists Chinese. Call HUD at (800) 569-4287 and ask for a counselor who speaks Mandarin or Cantonese, or ask an agency about an interpreter.
If we talk about the loan in Chinese, does the contract have to be in Chinese?
Yes, under California Civil Code 1632, if the business negotiates the reverse mortgage primarily in Chinese, it must give you a translated contract before you sign. The same rule covers Spanish, Tagalog, Vietnamese and Korean.
My Walnut home is worth more than the HECM limit. What are my choices?
The short version: a HECM only counts value up to HUD's limit ($1,249,125 for case numbers assigned in 2026). Private reverse mortgages set their own rules and limits, and some start at 55 in California. Compare both, with the costs of each in writing.
Is there a reverse mortgage lender in Walnut or Rowland Heights who explains things clearly?
I can't rate myself, so here's what I'd look for in anyone: someone who explains that counseling is required, lists every cost, and never pushes other products. Look up any loan officer on NMLS Consumer Access. I'm Tom Jarboe, NMLS #210600, and my office is a few minutes away in Diamond Bar.
Can I postpone my property taxes and get a reverse mortgage?
Usually not both. California law says choosing a reverse mortgage makes postponed taxes due. Call the State Controller at (800) 952-5661 before you plan on it.
Reverse mortgages in Chino Hills: counseling, San Bernardino County help and taxes
How do I find a good reverse mortgage lender in Chino Hills?
I can't rate myself, so here's what I'd look for in anyone: a loan officer who explains that counseling is required, shows every cost, explains when it isn't a fit, and never pushes other products. Check any license on NMLS Consumer Access. I'm Tom Jarboe, NMLS #210600, with an office in Diamond Bar, next door.
My home in Chino Hills is worth more than the HECM limit. What's the difference between a HECM and a private reverse mortgage?
Think of it this way: a HECM is FHA-insured and counts value only up to HUD's limit. A private (proprietary) loan isn't FHA-insured and sets its own age, limit and cost rules. Get both in writing and compare.
Who do I call in San Bernardino County to report elder financial abuse?
Adult Protective Services at 877-565-2020, any time, or report online. Call 911 for an emergency, and your local police as well.
Which office handles property taxes for a Chino Hills home?
San Bernardino County's Auditor-Controller/Treasurer/Tax Collector sends the bill, (909) 387-8308. The Assessor-Recorder-County Clerk handles values and exemptions, 909-387-8307.
Can I get reverse mortgage counseling in person near Chino Hills?
Yes. HUD lists in-person counseling in Ontario and Rancho Cucamonga, about 10 to 12 miles away. Call ahead.
Reverse mortgages in Rowland Heights: county help, counseling and translated contracts
Rowland Heights isn't a city. Who do I call for help?
LA County. Call Aging & Disabilities at 1-800-510-2020 (a statewide number that connects you to your county's aging office) for services, the Assessor or Treasurer and Tax Collector about property taxes, and the elder abuse hotline at 1-877-477-3646 if you suspect abuse.
Is there a senior center in Rowland Heights?
LA County Parks lists the Rowland Heights Community Center at Pathfinder Park as a senior activity site for adults 55 and older, weekday mornings. Call (562) 690-0933 for the current schedule.
If the lender explains the loan in Chinese or Korean, do I get the contract in that language?
Yes. Under Civil Code 1632, a reverse mortgage negotiated primarily in Chinese or Korean (or Spanish, Tagalog or Vietnamese) needs a full translation before you sign.
Is there a reverse mortgage lender near Rowland Heights who'll explain it clearly?
I can't rate myself, so here's what I'd look for in anyone. Look for someone who explains that counseling is required, lists every cost and tells you when it isn't a fit. Check licenses on NMLS Consumer Access. I'm Tom Jarboe, NMLS #210600, on Pathfinder Road in Diamond Bar.
Reverse mortgages in Pomona: counseling, senior centers and county help
Can I get reverse mortgage counseling in my language near Pomona?
Every nearby HUD-listed agency counsels in English and Spanish, and one also lists Vietnamese. The closest are in Ontario and Rancho Cucamonga, about 10 to 11 miles away. For another language, call HUD at (800) 569-4287 and ask, or ask an agency about an interpreter. Call to confirm a HECM counselor is available in your language.
If we talk about the loan in another language, do I get my contract in that language?
Yes, for Spanish, Chinese, Tagalog, Vietnamese or Korean. Under California Civil Code 1632, a reverse mortgage negotiated primarily in one of those languages needs a full translation before you sign.
What happens to a Pomona home with a reverse mortgage when the owner dies?
The loan comes due. Heirs can sell, pay it off and keep the home, or turn it over; with a HECM, heirs never owe more than the home is worth when sold. Ask the servicer in writing about time limits. See after a parent dies.
Where are the senior centers in Pomona?
Palomares Senior Center at 499 E. Arrow Highway and Washington Senior Center at 865 E. Grand Avenue. Call ahead for current hours.
How do I check a reverse mortgage loan officer near Pomona?
Look up the license on NMLS Consumer Access. Here's what I'd want from any loan officer: they list every cost, tell you when it isn't a fit, and explain that independent counseling is required before you apply. I'm Tom Jarboe, NMLS #210600, in Diamond Bar.
Reverse mortgages in West Covina: counseling, Cortez Park senior help and taxes
Is there a reverse mortgage counselor near West Covina?
HUD lists three agencies within about 30 miles, in Orange, Ontario and Rancho Cucamonga. All counsel by phone, and two by video, so you don't have to drive.
Can the West Covina senior center help me understand a reverse mortgage?
The Cortez Park center's Legal Assurance Program offers free attorney help with legal concerns, and S.C.A.P. offers free referrals and help with forms. They aren't reverse mortgage counselors, so you'll still need HUD-approved counseling before you can apply for a HECM.
Are reverse mortgages expensive?
They don't have to be, but the costs are real. They can cost more than other loans up front, mostly because of FHA mortgage insurance, and interest adds up over time. Compare offers line by line, and compare other choices too; see alternatives.
If the loan is explained to me in Tagalog or Vietnamese, do I get a translated contract?
Yes. Under California Civil Code 1632, a reverse mortgage negotiated primarily in Tagalog, Vietnamese, Spanish, Chinese or Korean needs a full translation before you sign.
How do I check a reverse mortgage loan officer?
Look up the license on NMLS Consumer Access. I'm Tom Jarboe, NMLS #210600, in Diamond Bar.
Questions about your own situation?
Talk with Tom Jarboe. He's been helping families with home loans since 1986. You'll get plain answers, and he'll tell you if a reverse mortgage isn't the right fit.