Roseville Reverse Mortgages and Home Loans

We're based in Auburn, which makes Roseville a short drive down Interstate 80. But to be honest, most of our clients never come to the office. We do this by phone and video, and the papers get signed at your kitchen table.

What does matter is knowing the rules that apply to your home. In Roseville, that usually means two things beyond the basic reverse mortgage: the extra costs that come with newer neighborhoods, like HOA dues and special district taxes, and the California rules that every reverse mortgage borrower in this state lives under. This page covers both.

The short version

• We help with reverse mortgages and regular home loans for Roseville homes, through our California loan officers.
• A HECM can pay off your mortgage and give you access to equity, with no required monthly mortgage payments. You must continue to pay property taxes and homeowners insurance, maintain the home, and meet the other loan terms.
• HOA dues and special taxes count. The lender looks at them right alongside property taxes and insurance.
• Moving to Roseville from somewhere else in California? Prop 19 and a HECM for Purchase can work together.
• California makes you wait 7 days after counseling before a reverse mortgage application is final.

Reverse mortgages for Roseville homeowners

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. If you still owe on the house, the HECM pays that off first. What's left can come to you as 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.

If you only take one idea from this page, take this one: on an adjustable HECM, the unused part of the line of credit grows over time, and the lender can't freeze or cut it as long as you meet the loan terms. That's why some people open one before they need it. Read the standby line of credit strategy and HECM vs. HELOC.

Proprietary (jumbo) reverse mortgages

If your home is worth more than the HECM limit, a jumbo reverse mortgage may give you access to more. 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, and availability varies by state. HomeSafe Standard is approved in California. See Lending Limits for the current HECM limit.

Buying instead of staying

If you want to move, the HECM for Purchase lets you buy your next home with a down payment and a reverse mortgage for the rest. After closing, 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. From accepted offer to closing, we can generally close in 30 days or less, but we always follow the contract.

HOA dues, special assessments, and Mello-Roos

Here's the part people don't think about until the lender asks.

Your budget includes more than taxes and insurance

Before approving a HECM, the lender completes a financial assessment. It looks at your income, your credit, and your history of paying property charges. Property charges aren't only property taxes and homeowners insurance. They also include HOA dues and special assessments.

Special taxes count too. If your home sits in a Community Facilities District, often called Mello-Roos, that special tax shows up on your property tax bill, and the lender treats it as part of what you must keep paying. So does any other special assessment on the bill.

None of this is a reason to panic. It's a reason to gather your numbers before we talk:

• Your latest property tax bill, including any special taxes.
• Your HOA's monthly or yearly dues, and any special assessment you're paying or expect.
• Your homeowners insurance declaration page.

HOAs and condos are not the same thing

Many Roseville neighborhoods have an HOA but are planned unit developments, not condominiums. That matters. A home in a PUD generally doesn't need FHA condo project approval for a HECM. A condo does, or it needs FHA single-unit approval. If you're not sure which you have, your grant deed or your HOA's documents will usually say. Ask me and I'll help you sort it out.

If your condo isn't FHA-approved and can't get single-unit approval, some proprietary programs may accept it, depending on the program.

Age-restricted communities

If you live in a 55-and-over community, a HECM can still work. The usual rules apply: you must be 62 or older, the home must be your primary residence, and the HOA dues are part of your property charges. If your spouse is younger than 62, read the Non-Borrowing Spouse guide before you go further.

Moving to Roseville with Prop 19

If you're moving to Roseville from somewhere else in California, to be closer to family or to get a home that fits this stage of life, and you're 55 or older, Prop 19 lets you transfer the taxable value of the home you sell to a replacement home anywhere in California:

• Up to three times in your life.
• The new home must be bought or built within two years of the sale.
• If the new home costs more than the old one sold for, the difference is added to the transferred value.
• You file with the assessor in the county where the new home is, which for Roseville is Placer County.

Pair that with a HECM for Purchase and you can buy the next home with a smaller down payment, keep your savings in the bank, and keep a lower tax base. Talk with the Placer County Assessor and your tax professional before you list. It's a conversation for your CPA too.

California rules every reverse mortgage borrower should know

The 7-day wait after counseling

Before any HECM, you meet with an independent, HUD-approved counselor. California then makes you wait: a lender can't accept your final, complete reverse mortgage application, or charge you fees, until 7 days after counseling. Read Why do I need to wait 7 days after counseling?

The notice and the worksheet

California also requires a notice in large type before counseling, and a short worksheet that you and the counselor sign. The loan can't be approved until the lender has the signed worksheet. It's paperwork, but it's good paperwork. It makes you stop and think about the right questions.

No required annuities

California law bars a lender from requiring you to buy an annuity to get a reverse mortgage. If anyone suggests you should, slow down and call me.

Prop 13 stays with you

Under Prop 13, your assessed value can generally rise by no more than 2 percent a year. A reverse mortgage is a loan, not a change in ownership, so it doesn't reset your assessment.

Property Tax Postponement

California's State Controller runs a Property Tax Postponement program for some homeowners 62 and older with limited income and enough equity. One of its rules is that the property can't have a reverse mortgage, and getting one makes any postponed taxes due. If you're in the program, tell me first, so we plan for paying it off at closing.

Insurance in the foothills

You must keep homeowners insurance on the home. If you've had trouble getting a policy because of wildfire risk and ended up on the California FAIR Plan, that's fine. The lenders we work with accept a FAIR Plan policy paired with a difference-in-conditions policy. Tell me early so we can check the coverage. Your premium is part of the financial assessment, so the real number matters.

Home loans for Roseville buyers and owners

We also help with:

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

Request a rate quote for your numbers.

How we work with Roseville clients

1. A conversation by phone or video about what you're trying to do.
2. Counseling with an independent, HUD-approved counselor, then California's 7-day wait.
3. Application and appraisal.
4. Signing at home with a mobile notary, or at escrow on a purchase.

Roseville and Placer County resources

• Agency on Aging Area 4, which serves Placer, Sacramento, and five other counties: 916-486-1876 or 800-211-4545
• Placer County Assessor: Persons 55+ tax base transfer
• California State Controller: Property Tax Postponement
• HUD-approved housing counselors: hud.gov/counseling or (800) 569-4287

Common questions

Do HOA dues affect a reverse mortgage?

Yes. They're a property charge, like property taxes and insurance, and the lender includes them in the financial assessment. Falling behind on them can also put the loan at risk, so plan for them.

Does Mello-Roos count?

It does. Any special tax on your property tax bill is part of what you must keep paying.

Can I get a reverse mortgage in a 55-and-over community?

Yes, if you're 62 or older and meet the usual rules. A home in a planned unit development generally doesn't need condo approval.

Can I move to Roseville and keep my old tax base?

If you're 55 or older and meet Prop 19's rules, often yes. Check with the Placer County Assessor.

Do I have to come to your office?

No. Most of our clients never do. We work by phone and video, and you sign at home.

Next step

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

Sources

• HUD, FHA Reverse Mortgage for Seniors (HECM): hud.gov
• 24 CFR Part 206, Home Equity Conversion Mortgage Insurance: ecfr.gov
• California State Board of Equalization, Introduction to Prop 19: boe.ca.gov
• Placer County Assessor, Persons 55+ Tax Base Transfer: placer.ca.gov
• California State Controller's Office, Property Tax Postponement FAQ: sco.ca.gov
• California Civil Code section 1923.2: justia.com
• California Civil Code section 1923.5: findlaw.com
• HUD Mortgagee Letter 2019-17, summarized by Hinshaw & Culbertson: hinshawlaw.com
• Agency on Aging Area 4, Where We Serve: agencyonaging.specialdistrict.org