PostHeaderIcon Reverse Mortgage Los Angeles

Getting a Reverse mortgage in Los Angeles has become increasing more and more popular with individuals 62 years of age or older; the seniors can turn the equity in their home into cash. It is very important for a property owner to fully understand the complexity of obtaining a Los Angeles reverse mortgage, the ramifications, and the alternatives. Our reverse mortgage Los Angeles experts will help provide an overview of how to obtain a reverse mortgage in Los Angeles. The only reverse mortgage insured by the U.S. Federal Government is called a Home Equity Conversion Mortgage or HECM, and is only available through an FHA approved lender. Many seniors use it to supplement social security, meet unexpected medical expenses, make home improvements and more It is very important to speak with a reverse mortgage Los Angeles approved lender to determine the correct reverse mortgage for the applying senior.

A Home Equity Conversion Mortgage (HECM) is FHA’s reverse mortgage program which allows the homeowner to withdraw some of the cash from your property. You choose how you want to withdraw your funds, whether in a fixed monthly amount or a line of credit or a combination of both. You can also use a HECM reverse mortgage to purchase a primary residence in Los Angeles if you are able to use enough cash to pay the difference between the HECM reverse mortgage proceeds and the sales price plus closing costs for the Los Angeles property you are purchasing.


Everyone’s situation is different, and in order to decide if obtaining a HECM reverse mortgage in Los Angeles  is right for you, you must take a look at the benefits and drawbacks and apply them to your circumstances.

The Benefits of an HECM Reverse Mortgage include:

  • Many lenders won’t take your credit rating into consideration.
  • You still retain ownership of the home; you can sell it or move out whenever you wish, and any equity left after settlement belongs to you.
  • The terms and payment schedules are very flexible.
  • There is a non-recourse feature to most HECM reverse mortgage s, which means you will never repay more than the value of the home.
  • A HECM reverse mortgage is non-taxable income.
  • No worries about foreclosure as long as the taxes and insurance are kept current.


The amount you may borrower will depend on:

  1. Age of the youngest borrower
  2. Current interest rate
  3. Lesser of appraised value or the HECM FHA mortgage limit of $625,500 or the sales price; and

Initial Mortgage Insurance Premium–your choices are HECM Standard or HECM SAVER

What costs are associated with getting a HECM?

• Loan Origination Fee

• Third party fees (i.e., appraisal, inspection, lender title policy, etc.)

• FHA Mortgage Insurance Premiums

• Servicing Fee

• Interest

While the main difference between a traditional home loan and a Los Angeles reverse mortgage is that you do not have to make payments, the traditional home loan often combines many of the expenses that go along with home-ownership. Reverse mortgage Los Angeles specialists should advise you that you will be responsible for paying your real estate taxes and insurance on the property. If your current mortgage includes these things in your monthly payments, it is certainly a factor to consider. All options will be discussed when reviewing you reverse mortgage application with our reverse mortgage Los Angeles lender.

Reverse mortgage Los Angeles lenders understand just how difficult it can be to make ends meet. The reverse mortgage Los Angeles experts agree that this type of loan could be just what a homeowner needs to improve their quality of life. Instead of working past the age of retirement to try to make ends meet, consider how the reverse mortgage Los Angeles loan could change your life. Reverse mortgage Los Angeles consultants are ready and willing to help you out of your current financial situation. They can help you with use of a reverse mortgage calculator to determine the monthly payments an any fees associated with the transaction.Contact our one of our reverse mortgage Los Angeles agents and discuss any concerns you may have.

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Reverse Mortgage