How a Reverse Mortgage Works
in California
Six straightforward steps — from your free estimate to funds in hand. Most California homeowners close in 30–45 days.
Free Consultation & Estimate
Call (800) 220-0579 or use our online calculator to get a free, no-obligation estimate. Your licensed Golden State specialist reviews your home value, age, and goals to show you exactly how much equity you can access.
- No credit check required at this stage
- Instant calculator estimate available online
- Covers HECM and jumbo reverse mortgage options
- Zero pressure — we tell you if it's not the right fit
HUD Counseling Session
Federal law requires all reverse mortgage applicants to complete a session with an independent HUD-approved housing counselor before applying. This counselor has no financial interest in your loan — their job is to make sure you fully understand your options.
- Available by phone or in person throughout California
- Covers loan terms, obligations, and alternatives
- Typically costs $125–$200 (waivers available)
- You receive a signed certificate valid for 180 days
Application
Once you have your counseling certificate, your specialist helps you complete the formal application. We handle the paperwork — you just need to provide a few key documents.
- Government-issued ID for all borrowers
- Proof of homeownership (deed or title)
- Current homeowner's insurance policy
- Most recent property tax bill
Home Appraisal
An FHA-approved appraiser visits your home to determine its current market value. This appraisal directly determines your loan amount — higher value means more available equity.
- Appraiser is independent and FHA-approved
- Evaluates condition, size, and comparable sales
- Required repairs (if any) identified at this stage
- Second appraisal may be required by HUD for high-value homes
Underwriting & Approval
The lender's underwriting team reviews your complete application, appraisal, and financial assessment. Most California HECM loans are approved within 2–3 weeks. Your specialist keeps you updated throughout.
- Financial assessment confirms ability to pay taxes & insurance
- Life Expectancy Set-Aside (LESA) structured if needed
- Final loan terms confirmed in writing
- Closing disclosure provided at least 3 days before closing
Closing & Funding
You sign your loan documents at closing — typically at your home or a title company. Federal law gives you a 3-business-day right of rescission: you can cancel for any reason, no penalty. After that window, funds are disbursed.
- 3-day right of rescission — cancel anytime, no penalty
- Lump sum available within 3–5 business days of funding
- Line of credit and monthly payments begin immediately
- Existing mortgage paid off from proceeds at closing
Choose How You Receive Your Funds
Once approved, you decide how to access your equity. You can change your payout structure after closing — your specialist will help you choose the best fit.
Lump Sum
Receive all available funds at closing. Fixed interest rate. Best for paying off an existing mortgage or covering a large one-time expense.
Monthly Payments
Receive equal monthly payments for life (tenure) or for a set number of years (term). Functions like a private pension supplement.
Line of Credit
Access funds as needed. The unused portion grows over time at the loan's interest rate — often doubling over 10–15 years. The most popular option.
Combination
Mix any of the above. A common choice: lump sum to pay off the mortgage, then a line of credit for future needs.
Total Timeline
30–45 Days
Application to funding for most CA homeowners
Right of Rescission
3 Business Days
Cancel after closing — no penalty, no questions
Out-of-Pocket Cost
$0
All closing costs can be financed into the loan
Common Questions
Straight answers to what California homeowners ask most.
Do I have to make monthly payments?
No. A reverse mortgage requires no monthly mortgage payments. You remain responsible for property taxes, homeowner's insurance, and home maintenance — but there is no monthly loan payment.
Will the bank own my home?
No. You retain full title and ownership of your home throughout the life of the loan. The lender places a lien on the property (just like a traditional mortgage), but you own the home.
What happens when I pass away or move out?
The loan becomes due and payable. Your heirs have 6 months (with possible extensions to 12 months) to sell the home, refinance, or repay the loan. The non-recourse protection means they will never owe more than the home is worth.
How long does the process take?
Most California reverse mortgages close in 30–45 days from application to funding. The timeline depends primarily on how quickly the appraisal and underwriting are completed.
Can I get a reverse mortgage if I still have a mortgage?
Yes — in fact, paying off an existing mortgage is one of the most common uses of reverse mortgage proceeds. The existing mortgage is paid off at closing from the reverse mortgage funds.
Does a reverse mortgage affect Social Security or Medicare?
No. Reverse mortgage proceeds do not affect Social Security or Medicare benefits. If you receive Medi-Cal or SSI, consult a benefits counselor — those programs have asset tests that may be affected.
More questions? See our full FAQ — 24 questions answered
Ready to See How Much You Qualify For?
Start with a free, no-obligation estimate. Our licensed California specialists will walk you through every step — no pressure, no commitment.
California DFPI License #60DBO-12345 · HUD-Approved · BBB A+