Reverse Mortgage Facts – Everything You Need to Know

Frequently Asked Questions About Reverse Mortgages in Orange County

  • What is a Reverse Mortgage in Orange County and How Does It Work?

    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.

  • Who Qualifies for a Reverse Mortgage in Orange County, California?

    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

  • What Are the Benefits of an Orange County Reverse Mortgage?

    • 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

  • How Much Money Can I Get with a Reverse Mortgage in Orange County?

    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

  • What is an Orange County Jumbo Reverse Mortgage?

    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

  • Can I Use a Reverse Mortgage to Refinance an Existing Loan in Orange County?

    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

  • What Happens to my Orange County Reverse Mortgage When I Pass Away?

    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