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- Reverse Mortgages
Reverse Mortgages in California for Homeowners 62 and Older
Convert home equity into cash, a line of credit or monthly payments. Taxes, insurance and upkeep still apply, and any first mortgage you keep must still be paid.
- Homeowners 62 and older
- HECM, jumbo and reverse second
- No monthly P&I on the reverse loan itself
On select programs, subject to lender approval. Not all applicants will qualify.
A reverse mortgage lets a homeowner convert part of the equity in their home into cash, a line of credit, or monthly payments — without selling the home. With a reverse mortgage that pays off your existing loan, no monthly mortgage payment is required on the reverse loan itself, but you must keep paying property taxes, homeowners insurance and upkeep. A reverse second sits behind a first mortgage you keep, and that first mortgage payment continues. Blue Fox Capital arranges reverse mortgage financing for California homeowners through third-party lenders.
It is a real mortgage with real obligations. This page explains what the loan does, what you stay responsible for, and when it has to be repaid.
Program Types
1. FHA Home Equity Conversion Mortgage (HECM)
The federally insured reverse mortgage. Available to homeowners 62 and older on loan amounts up to the FHA lending limit. Proceeds can be taken as a lump sum, a growing line of credit, monthly advances, or a combination. Requires counseling from a HUD-approved counseling agency before an application can be submitted.
2. Proprietary Jumbo Reverse Mortgage
For higher-value California homes where the FHA lending limit leaves equity on the table. These are private-lender products, not FHA-insured, and terms and minimum age can differ from HECM. Often the right structure for homes well above the FHA limit.
3. Stand-Alone Reverse Second Mortgage
A reverse mortgage placed in second position behind an existing first mortgage you want to keep. If you hold a low fixed rate on your current mortgage, this lets you access equity without refinancing and losing that first-position loan. A newer structure, available on select programs.
Important: With a reverse second mortgage, you must continue making all required payments on your existing first mortgage. You also remain responsible for property taxes, homeowners insurance, applicable HOA dues, maintenance and other obligations under the loan terms.
Eligibility
- Age: 62 or older for HECM. Proprietary programs may allow a lower minimum age — ask us what applies to your situation
- Occupancy: The home must be your principal residence
- Property Types: Single-family, FHA-approved condominium, and 2–4 unit properties where you occupy one unit
- Equity: Sufficient equity in the home; the amount available depends on your age, the home’s value, and program terms
- Financial Assessment: Lenders review your ability to keep up with property taxes, insurance, and upkeep
- Counseling: Required for HECM through a HUD-approved agency
- Geographic Area: California
What You Remain Responsible For
A reverse mortgage does not end your obligations as a homeowner. You must continue to:
- Pay property taxes on time
- Keep homeowners insurance in force
- Pay any applicable HOA dues
- Maintain the home in good repair
- Occupy the home as your principal residence
Failing to meet these obligations can cause the loan to become due and payable, and could result in the loss of the home. This is the single most important thing to understand before taking a reverse mortgage.
When the Loan Becomes Due and Payable
The loan balance becomes due when any of the following happens:
- The last surviving borrower dies
- The home is sold or title is transferred
- The home stops being the principal residence of the last surviving borrower
- The borrower fails to meet the obligations listed above
Interest and fees accrue on the balance over the life of the loan, so the amount owed grows over time while the equity remaining in the home decreases. HECM loans are non-recourse: neither you nor your heirs will owe more than the home’s value at the time the loan is repaid, even if the balance has grown beyond it.
How Homeowners Use the Proceeds
- Paying off an existing mortgage with a reverse mortgage, so no monthly mortgage payment is required on the new loan (taxes, insurance and upkeep still apply; with a reverse second, your first mortgage payments continue)
- Covering in-home care or medical costs
- Building a standby line of credit as a financial cushion
- Supplementing retirement income
- Paying off higher-cost consumer debt
- Home modifications for aging in place
How It Works
- Conversation. We review your age, your home, any existing mortgage, and what you are trying to accomplish. No cost, no obligation.
- Program comparison. We show you HECM, jumbo, and reverse second options side by side so you can see the real trade-offs.
- Counseling. For a HECM you complete a session with an independent HUD-approved counselor. You can find a HUD-approved counselor at hud.gov or by calling (800) 569-4287. We cannot skip this step and would not want to.
- Application and appraisal. Full disclosures are issued on the required timeline.
- Underwriting and closing. Reverse mortgage timelines typically run longer than a standard refinance.
Is a Reverse Mortgage Right for You?
Not always, and we will tell you when it is not. A reverse mortgage tends to work poorly if you plan to move within a few years, if you cannot comfortably cover taxes and insurance, or if leaving the home to heirs free and clear is your priority. It tends to work well if you intend to stay in the home long term and want to convert equity into cash flow or a safety net. Talk it through with your family and, ideally, a financial or tax advisor before you decide.
Frequently Asked Questions
Can the lender take my home?
You keep title to your home. You can lose the home the same way you could with any mortgage — by failing to pay property taxes or insurance, letting the property fall into disrepair, or no longer living there as your principal residence.
Will my heirs inherit a debt?
HECM loans are non-recourse. Your heirs will never owe more than the home is worth when the loan is repaid. They can sell the home to pay off the balance and keep any remaining equity, or pay off the balance and keep the home.
Do I have to make monthly payments?
It depends on the type. With a reverse mortgage in first position (such as a HECM) that pays off your existing mortgage, no monthly principal and interest payment is required on that loan. With a reverse second mortgage, your existing first mortgage stays in place and you must keep making every required payment on it. In both cases you must keep paying property taxes, homeowners insurance, HOA dues and maintenance costs, and meet the other obligations in your loan terms.
Are the proceeds taxable?
Loan proceeds are generally not treated as income. We are not tax advisors — confirm your situation with your CPA, and understand that receiving proceeds may affect eligibility for need-based benefit programs.
Can I get one if I still have a mortgage?
Yes. A reverse mortgage can pay off your existing loan, or a reverse second can sit behind a first mortgage you want to keep.
What does it cost?
Costs vary by program and include origination fees, third-party closing costs, and mortgage insurance premiums on HECM loans. We will give you a written breakdown of the actual costs for your loan before you commit to anything.
Talk to Us About a Reverse Mortgage
Tell us a bit about your home and your situation, and we will walk you through the options in plain language. No pressure, no obligation.
Related Programs
Important disclosures. This material is not from HUD or FHA and has not been approved by HUD, FHA, or any government agency. For the loans described on this page, Blue Fox Capital Corporation acts as a California mortgage broker, not a lender (CA DRE 01527288 | NMLS 1840487; Daniel Eckhouse, NMLS 217328 | CA DRE 01977403), and arranges reverse mortgage loans through third-party lenders. Reverse mortgage products are offered in California only.
A reverse mortgage is a loan secured by your home. You remain responsible for paying property taxes, homeowners insurance, any applicable HOA dues, and property maintenance, and for occupying the home as your principal residence. Failure to meet these obligations may cause the loan to become due and payable and could result in the loss of your home. Interest and fees accrue over the life of the loan, increasing the loan balance and reducing the equity remaining in your home. The loan becomes due and payable when the last surviving borrower dies, sells the home, transfers title, or no longer occupies the home as a principal residence. HECM loans are insured by FHA and are non-recourse.
HECM borrowers must be 62 or older and must complete counseling with a HUD-approved counseling agency prior to application. Minimum age, loan limits, and terms differ for proprietary reverse mortgage products, which are not FHA-insured. Availability, loan amounts, costs, and program terms vary by lender and are subject to change without notice. Loan proceeds may affect eligibility for need-based government benefit programs and may have tax consequences — consult your tax advisor and benefits counselor. Approval is not guaranteed and is subject to underwriting review, including a financial assessment. Not all applicants will qualify. Equal Housing Opportunity.