Reverse Mortgage Facts – Everything You Need to Know

A reverse mortgage is a home loan designed for homeowners 62 years and older that allows them to convert a portion of their home equity into cash without selling their home. Unlike a traditional mortgage, borrowers do not make monthly mortgage payments—instead, the loan is repaid when the homeowner moves, sells the home, or passes away.

To qualify for a reverse mortgage in Dana Point, homeowners must:

• Be 62 years or older (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

• Access to tax-free cash to supplement retirement income
• No monthly mortgage payments required
• Homeowners retain ownership of their property
• Flexibility to receive payments as a lump sum, monthly payments, or a line of credit
• Protection with non-recourse loan terms—heirs will never owe more than the home’s value

The loan amount depends on several factors, including:

• Home value (higher values qualify for jumbo reverse mortgages)
• Age of the youngest borrower
• Current interest rates
• Loan type and payout option chosen

A jumbo reverse mortgage is designed for homeowners with high-value properties exceeding FHFA loan limits ($1,149,825 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

Yes! A reverse mortgage refinance allows homeowners to replace their existing reverse mortgage with a new one to:

• Increase cash payouts if home values rise
• Secure lower interest rates
• Access better loan terms

When the last borrower leaves the home:

• The home is sold to repay the loan balance
• Heirs can keep the home by paying off the loan or refinancing
• If the home is worth less than the loan balance, the lender absorbs the loss due to non-recourse loan protections

The process begins with a free consultation with a licensed reverse mortgage lender. Our team at Green Monarch guides you through:

• Initial assessment & eligibility review
• Loan application & appraisal
• Financial counseling (required by FHA)
• Loan approval & funding