As you step into your retirement, you should be able to embrace your new financial goals with excitement. With existing mortgage payments looming over you and a new lifestyle ahead of you, feeling on top of your finances may feel like a pipe dream.
Reverse mortgages offer eligible homeowners the opportunity to convert a portion of their home equity into accessible, tax-free cash, allowing them to create their ideal lifestyle and achieve financial security.
Learn more about reverse mortgages, including what they are and what you can use a reverse mortgage for in California.
A reverse mortgage is a type of loan that eligible homeowners can take out on their homes.
Reverse mortgages enable homeowners aged 62 and over to borrow against their home equity without having to make monthly payments. Those who take out reverse mortgages can receive their loans as lump sums, in monthly installments, as a line of credit or as a combination of all three.
Unlike with home equity loans, home equity lines of credit (HELOC) or traditional mortgages, your reverse mortgage loan provider does not require monthly repayments. Instead, the loan is repaid upon the sale of the house, when the house ceases to be the homeowner’s primary residence, when the homeowner passes away or under other circumstances.
To take out a reverse mortgage:
Additionally, the home must be eligible for a reverse mortgage, meaning it is:
There are multiple types of reverse mortgages available to homeowners in California. Two of the most popular types of reverse mortgages in California are home equity conversion mortgages (HECMs) and jumbo proprietary mortgages (JPM).
The FHA insures HECMs, so they are standardized, federally backed mortgage loans. By allowing you to access your home’s equity, HECMs enable you to gain control over your mortgage payments and fund the things you care about. HECMs are subject to the FHA lending limit, which is $1,209,750 in 2025.
Jumbo proprietary mortgages are private loans that are not FHA-insured. Proprietary loans are not subject to the same regulations as HECMs, making them suitable for loans exceeding the FHA lending limit. As California house prices stand at almost double the national average, JPMs are a viable option for California residents.
Key differences between HECMs and JPMs include:
Both HECMs and JPMs are fantastic options for California residents seeking improved financial stability. Which one is best for you depends on the value of your home and the level of standardization you prefer.
If you are a California resident and are considering taking out an HECM or JPM, you are probably wondering what you can use a reverse mortgage for in California.
Both HECMs and JPMs benefit from entirely unrestricted usage options. Under California law, these types of reverse mortgages can be used for any purpose, giving people aged 62 and over the chance to rebalance their lives, find financial security and put their equity toward anything they like.
Reverse mortgage uses in California can vary from covering necessary expenses to financing your next European cruise!
With reverse mortgages, the possibilities are truly endless. You can use your reverse mortgage to cover:
Reverse mortgage benefits in California include:
The beauty of HECM and JPM reverse mortgages lies in their flexibility, allowing them to be used for a wide range of purposes. For people heading toward retirement or those simply looking for a new approach to their finances, reverse mortgages can be the change you need.
Explore some of our client scenarios to see how a reverse mortgage could be the solution to your financial problems.
After losing her husband, Catherine faced grief and financial uncertainty.
Without her husband’s Social Security income and pension, Catherine needed a way to replace her lost income. Having also incurred hundreds of dollars’ worth of medical bills during her husband’s illness, Catherine was under immense financial strain. With her ongoing mortgage payments of $789 per month, Catherine could see no way to start repaying her medical debt.
She contacted Senior Lending Corporation and spoke with one of our trusted HECM advisors, who provided her with a solution to all her struggles — a reverse mortgage. With an HECM, Catherine was able to pay off her existing mortgage, pay her medical bills and credit card debt, and even keep a credit line of $92,000 available for emergencies.
Samuel and Clara’s home was built in the 1970s and needed some major improvements.
Their home urgently needed a new roof, replacement of all its windows and a new AC unit, as well as a host of cosmetic upgrades throughout. These renovations would have cost Samuel and Clara around $40,000, or $774 per month.
After contacting Senior Lending Corporation, Sam and Clara were able to open up an HECM line of credit in the amount of $142,000. This sum covered their home renovation expenses and kept $102,000 available for future use.
With a reverse mortgage from Senior Lending Corporation, you can enjoy mortgage-free retirement living and immediate access to cash, and still maintain total ownership of your home.
Whatever you want to spend your new line of credit on, the possibilities are endless with our premier reverse mortgages.
To find out how we can help you achieve your retirement, your way, get your free information kit here or call us at 800-822-1190 today.
