Los Angeles Reverse Mortgages and Home Loans

Los Angeles homeowners are often in an interesting spot. A lot of people bought decades ago, have Prop 13 working in their favor, and are sitting on equity that would have sounded like science fiction when they signed the first mortgage. And a lot of them are also staring at an insurance renewal that got very real after January 2025.

So when we talk about a reverse mortgage in LA, I usually start with three questions. Is your home above the HECM limit? What does your insurance look like? And are you thinking about staying, or about moving somewhere smaller?

The short version

• We help with reverse mortgages and regular home loans for Los Angeles homes, through our California loan officers.
• On higher-value LA homes, the jumbo question comes up a lot. We compare the HECM with proprietary programs side by side.
• California adds rules: a 7-day wait after counseling, a ban on requiring annuities, and a worksheet you sign before approval.
• Prop 19 can help if you're 55 or older and want to move within California.
• Insurance is the bill to watch. The FAIR Plan with a difference-in-conditions policy is accepted by our lenders.

HECM vs. jumbo on a Los Angeles home

The HECM

The HECM is the FHA-insured reverse mortgage. You must be 62 or older, live in the home as your primary residence, and have enough equity. You can take a line of credit, monthly payments, a lump sum, or a mix.

There are no required monthly mortgage payments. You must continue to pay property taxes and homeowners insurance, maintain the home, and meet the other loan terms.

A HECM uses your home's value only up to the national HECM limit. A home worth more still qualifies, but the extra value doesn't add to what you can borrow. See Lending Limits. We don't charge a monthly servicing fee on our HECMs.

Proprietary (jumbo) reverse mortgages

A jumbo reverse mortgage uses its own limits, which can be well above the HECM limit. They don't charge FHA mortgage insurance, and some accept condos that aren't FHA-approved. The tradeoff is usually a higher rate and fewer ways to take the money.

We compare programs including Mutual of Omaha Secure Equity, Finance of America HomeSafe, Longbridge Platinum, Smartfi Choice, Nationwide Equities EquityPower, and MCM Holdings MCM Edge. Finance of America's HomeSafe Standard is approved in California, and availability for the others varies.

How I decide between them

I run both. If the HECM gets you what you need and you want a line of credit that grows, it often wins. If your home is well above the limit, you want more money upfront, or your condo isn't FHA-approved, a jumbo often wins. Plenty of times, the honest answer is "it depends," and you'll see why on paper.

The HECM for Purchase

Thinking about moving to something smaller, closer to family, or out of a fire-prone canyon? The HECM for Purchase lets you buy with a down payment plus a reverse mortgage, with no required monthly mortgage payment afterward. You must continue to pay property taxes and homeowners insurance, maintain the home, and meet the other loan terms. We can generally close in 30 days or less, but we always follow the contract.

California's reverse mortgage rules

The 7-day wait

In California, a lender can't take a final, complete reverse mortgage application or charge fees until 7 days after you finish counseling. See Why do I need to wait 7 days after counseling?

My advice: do counseling early, before you're in a hurry.

No required annuities

California law bars a lender from requiring you to buy an annuity to get a reverse mortgage. If anyone pushes you toward one as a condition of the loan, stop and call us.

The notice and the worksheet

Before counseling, you get a plain-language notice. You and your counselor go through a reverse mortgage worksheet, and the loan can't be approved until the signed worksheet is back with the lender.

California property taxes

Prop 13

Prop 13 bases your property tax on your purchase price, with limited yearly increases, so long-time owners often pay far less than a new buyer would. A reverse mortgage doesn't change ownership, so it doesn't by itself trigger a reassessment.

Prop 19 if you want to move

If you're 55 or older, Prop 19 lets you move your Prop 13 tax base to a replacement home anywhere in California, up to three times, if you buy within two years of selling. If the new home is worth more, the difference in market value is added to your transferred value. Paired with a HECM for Purchase, that can make a move much easier to afford. Ask the county assessor before you buy.

Property Tax Postponement

The State Controller's Property Tax Postponement program doesn't allow a reverse mortgage on the home, and if you're in the program and take out a reverse mortgage, the postponed taxes come due. If you're weighing both, look at them side by side first. I'm glad to help.

Insurance after the 2025 fires

The Eaton and Palisades fires that started January 7, 2025 changed the insurance picture in Los Angeles. The California FAIR Plan, the state's insurer of last resort, needed extra money to pay claims after the Los Angeles fires, and many more homeowners now rely on it.

Here's what that means for a reverse mortgage:

• You must keep homeowners insurance that meets the lender's requirements, every year.
• The FAIR Plan plus a difference-in-conditions policy works. Our lenders accept FAIR Plan fire coverage paired with a difference-in-conditions policy for the rest.
• Earthquake insurance generally isn't part of the HECM requirement, but check your lender's insurance terms. Whether to buy it is your call.
• Shop early. Your premium is part of the financial assessment. If it looks tight, part of the loan can be set aside to pay taxes and insurance for you.

After a disaster, call your servicer, file your claim, and keep records. Read What Reverse Mortgage Borrowers Need to Know After a Natural Disaster.

Condos in Los Angeles

For a HECM, a condo generally needs FHA project approval, or the unit may qualify through single-unit approval. If your building isn't approved, a jumbo program may still work. Either way, HOA dues and special assessments are part of what you must keep paying.

Home loans for Los Angeles buyers and owners

We also help with:

• Buying a home and seeing your buying power before you shop.
• Refinancing.
• Home equity loans and HELOCs.
• Jumbo loans, conventional loans, and FHA loans.
• VA loans for eligible veterans and service members.

Request a rate quote for your numbers.

How we work with Los Angeles clients

1. A conversation by phone or video about your goals, your home's value, and your insurance.
2. Counseling with an independent, HUD-approved counselor for a HECM, usually by phone or video. Then the 7-day wait.
3. Application and appraisal. An appraiser visits the home, or the home you're buying.
4. Signing, usually with a mobile notary at your home.

Los Angeles resources

• Los Angeles County Aging & Disabilities Department, information line 1 (800) 510-2020
• California State Board of Equalization: Introduction to Prop 19
• California State Controller: Property Tax Postponement
• HUD-approved housing counselors: hud.gov/counseling or (800) 569-4287

Common questions

My home is worth more than the HECM limit. Can I still get a HECM?

Yes. The limit caps the value used in the math, not your eligibility. A jumbo program may give you more, so I'll compare both.

Will a reverse mortgage reassess my property taxes?

Not by itself. It doesn't change ownership. You still have to pay the taxes.

Can I use the FAIR Plan with a reverse mortgage?

Yes, our lenders accept FAIR Plan fire coverage paired with a difference-in-conditions policy. You need coverage that meets the lender's requirements before closing and every year after.

Can I get a reverse mortgage on an LA condo that isn't FHA-approved?

Possibly. The unit may qualify through single-unit approval for a HECM, or a jumbo program may accept it.

Why do I have to wait 7 days after counseling?

California law requires it for reverse mortgages. It's a cooling-off period so you don't feel rushed.

Next step

Get My Estimate, find a loan officer for California, or call us at 530-888-6000. See our California page and the full guide to Reverse Mortgages.

Sources

• California Civil Code section 1923.2: justia.com
• California Civil Code section 1923.5: findlaw.com
• California State Board of Equalization, Introduction to Prop 19: boe.ca.gov
• California State Controller's Office, Property Tax Postponement FAQ: sco.ca.gov
• "California's insurer for people without private coverage needs $1 billion more for LA fires claims," Associated Press via KSAT, February 11, 2025: ksat.com
• Los Angeles County Aging & Disabilities Department, Services: ad.lacounty.gov
• HUD Mortgagee Letter 2019-17, summarized by Hinshaw & Culbertson: hinshawlaw.com
• HUD, FHA Reverse Mortgage for Seniors (HECM): hud.gov