Reverse Mortgage Facts – Everything You Need to Know

A reverse mortgage is a unique loan option for homeowners aged 55 and older, allowing them to convert part of their home equity into cash without having to sell their property. Unlike a traditional mortgage, borrowers don’t need to make monthly payments; the loan is repaid when you decide to refinance, move, sell the home, or pass away.

Homeowners in Orange County seeking to qualify for a reverse mortgage must meet these criteria:

• Be at least 62 years old (or 55+ for certain jumbo reverse mortgages)  
• Own a home that is their primary residence  
• Have sufficient home equity  
• Meet financial assessment requirements set by lenders

• Access to tax-free cash to boost retirement income
• No requirement for monthly mortgage payments
• Homeowners retain ownership of their property
• Choice to receive payments as a lump sum, monthly installments, or a line of credit
• Non-recourse loan protection—heirs won't be liable for more than the home's value

The loan amount is determined by several factors, including:

• Home value (higher valuations may qualify for jumbo reverse mortgages)  
• Age of the youngest borrower  
• Current interest rates  
• Type of loan and selected payout option

A jumbo reverse mortgage is designed for homeowners with properties valued above the FHA loan limits ($1,209,750 in Orange County, CA, as of 2024). These loans offer:

• Larger cash payouts than standard FHA-backed HECM loans
• No mortgage insurance premiums (MIP)
• Flexible loan terms and payout options

Absolutely! A reverse mortgage refinance in Orange County allows homeowners to replace their existing mortgage with a new reverse mortgage to:

• Increase cash payouts if home values rise  
• Secure lower interest rates  
• Access better loan terms

When the last borrower leaves the home in Orange County:

• The property is sold to pay off the loan balance  
• Heirs can choose to keep the home by repaying the loan or refinancing  
• If the property’s market value is lower than the loan balance, the lender absorbs the loss due to non-recourse loan protections