We have put together this page to help seniors in California learn about reverse mortgages, particularly the Home Equity Conversion Mortgage (HECM). CA is the most populous of the 50 states, boasting nearly 40 million people, 10% of whom are over the age of 60. Many of the state’s older homeowners may benefit from a HECM loan.
Want to learn more? Click here to get free information about a CA reverse mortgage!
First, we’ll lay out some questions you should ask yourself before considering a reverse mortgage. Then, you will find:
Is a California Reverse Mortgage Right For You?
Your personal circumstances are the determining factor of whether it is a good fit. Here’s what we recommend thinking about before shopping for a reverse mortgage.
Examine Your Motivations
In our opinion, the most logical place to start is to pin down why you’re considering a reverse mortgage in the first place. List out your retirement goals and analyze your finances. After you’ve taken this step, you should be better able to answer this crucial question: can a reverse mortgage actually help achieve these goals?
Consider Your Needs
If you’ve decided that a reverse mortgage is suitable for your goals, you’ll need to decide how to take the funds. Here, you have three options:
- Lump sum
- Monthly annuity
- Line of credit
The lump sum is ideal for shorter term purposes such as:
- Fixing up or improving your house
- Consolidating debt
- A need for fast cash
A line of credit, on the other hand, can act as a longer term ‘savings account’ of sorts, giving you access to your home equity if you ever need it later on. The monthly annuity gives you a predictable influx of cash each month to help you meet your expenses.
You can also combine the three options listed above to help you meet your needs. As you can see, a HECM offers CA borrowers a lot of flexibility.
What About Your House?
Your California home itself could influence your decision and will definitely impact your eligibility. The majority of mobile homes do not qualify for the HECM program. You’ll also run into issues if you live on more than 50 acres or on a property of over four units.
Although the HECM program is by far the most popular version of the reverse mortgage loan, you may want to consider a proprietary version in certain circumstances. These include: if your home has a very high appraised value, and if you live in a condo that doesn’t meet the Federal Housing Administration’s guidelines.
You should also think carefully about whether you want to continue living in your current home. Some homeowners decide that this isn’t right for them, often because the home is too big.
Know Your Obligations
As part of taking out a HECM loan, the homeowner must continue to:
- Pay taxes, insurance, and any HOA fees
- Maintain the home to FHA standards
You’re already doing these things, but it’s important to remember that you’ll need to continue once you have your reverse mortgage. Thankfully, in 2015 the US Department of Housing & Urban Development began requiring prospective borrowers to undergo a financial assessment to make sure that they can indeed continue to meet these obligations.
Make Sure You Qualify in California
We’ll list the qualifications and you can check them off one by one:
1. You must be at least 62 years of age
2. You must own the home and use it as your primary residence
3. You must have substantial equity in the home, generally around 50%
How Much Are You Eligible to Receive?
An online calculator can give you a good idea – ours does so with minimal personal information, asking only for your age, the age of your spouse (if applicable), your home value and an estimate of prevailing interest rates. Older borrowers, borrowers with more valuable homes, and borrowers taking out the loan when interest rates are lower are eligible to receive more.
You’ll receive the most precise number from contacting a licensed California reverse mortgage lender.
Want to learn more? Click here to get free information about a reverse mortgage!
Largest California Reverse Mortgage Lenders
More HECM loans have been originated in California than in the next two states, Texas & Florida, combined. Because of the enormous market, there is no shortage of lenders offering the product. Below, you will find a list of the largest lenders, along with a list of the largest since 2012, when major players such as Wells Fargo and Bank of America exited the industry.
All Time:
| Lender | Loans | Total Principal Limit |
| WELLS FARGO | 36,137 | 11,814,037,492 |
| AMERICAN ADVISORS GROUP | 16,657 | 8,386,515,567 |
| FINANCIAL FREEDOM SENIOR FUNDING CORP | 8,536 | 2,280,998,657 |
| GENWORTH FINANCIAL HM EQUITY ACCESS INC | 5,762 | 1,823,800,585 |
| SEATTLE MORTGAGE COMPANY | 5,107 | 1,363,728,477 |
| BANK OF AMERICA | 5,082 | 2,058,458,356 |
| ONE REVERSE MORTGAGE LLC | 4,009 | 1,619,431,440 |
| HIGH TECH LENDING INC | 3,854 | 2,098,734,443 |
| FINANCE OF AMERICA REVERSE LLC | 3,784 | 2,138,253,867 |
| REVERSE MORTGAGE FUNDING LLC | 3,654 | 2,137,267,046 |
| SENIOR FUNDING ASSOCIATES | 3,239 | 1,333,394,289 |
| MUTUAL OF OMAHA MORTGAGE INC. | 3,093 | 2,181,233,662 |
| AMERICAN PACIFIC MORTGAGE | 2,911 | 1,367,106,188 |
| GENERATION MORTGAGE COMPANY | 2,807 | 895,294,771 |
| REVERSE MORTGAGE SOLUTIONS INC | 2,755 | 1,245,900,728 |
| LIBERTY HOME EQUITY SOLUTIONS INC | 2,739 | 1,193,715,051 |
| SECURITY ONE LENDING | 2,730 | 1,083,933,518 |
| OPEN MORTGAGE LLC | 2,314 | 1,181,458,189 |
| METLIFE BANK NATIONAL ASSOCIATION | 2,119 | 870,956,493 |
| LIBERTYSTREET FINANCIAL GROUP | 2,044 | 734,431,628 |
Since 2012
| Lender | Loans | Total Principal Limit |
| AMERICAN ADVISORS GROUP | 15,822 | 8,086,013,247 |
| REVERSE MORTGAGE FUNDING LLC | 3,654 | 2,137,267,046 |
| HIGH TECH LENDING INC | 3,652 | 2,019,408,860 |
| FINANCE OF AMERICA REVERSE LLC | 3,514 | 2,047,527,687 |
| MUTUAL OF OMAHA MORTGAGE INC. | 3,093 | 2,181,233,662 |
| ONE REVERSE MORTGAGE LLC | 2,774 | 1,187,536,890 |
| REVERSE MORTGAGE SOLUTIONS INC | 2,698 | 1,226,878,198 |
| LIBERTY HOME EQUITY SOLUTIONS INC | 2,620 | 1,143,560,051 |
| AMERICAN PACIFIC MORTGAGE | 2,097 | 1,091,981,338 |
| SYNERGY ONE LENDING INC. | 1,895 | 994,337,838 |
Want to learn more? Click here to get free information about a reverse mortgage in California!
CA Interest Rates
Every month, the HUD publishes data on all of the reverse mortgages that closed two months prior. The data indicate the interest rate on the loan, which is likely the most reliable source for gauging the market. You may not be able to find the exact rate listed here – these are averages after all, and we receive the information on a two month delay – but this table should give you a solid starting point in your search.
Current Rates
| Date | Fixed Rate | Adjustable Rate |
| 2019-01-01 | 4.75% | 5.06% |
| 2019-02-01 | 4.76% | 4.99% |
| 2019-03-01 | 4.77% | 4.88% |
| 2019-04-01 | 4.71% | 4.77% |
| 2019-05-01 | 4.75% | 4.65% |
| 2019-06-01 | 4.62% | 4.58% |
| 2019-07-01 | 4.65% | 4.32% |
| 2019-08-01 | 4.79% | 4.16% |
| 2019-09-01 | 4.78% | 4.01% |
| 2019-10-01 | 4.55% | 4.07% |
| 2019-11-01 | 4.33% | 3.97% |
| 2019-12-01 | 4.23% | 3.90% |
| 2020-01-01 | 4.33% | 3.93% |
| 2020-02-01 | 4.23% | 3.90% |
| 2020-03-01 | 4.20% | 3.82% |
| 2020-04-01 | 4.17% | 3.42% |
| 2020-05-01 | 4.03% | 3.25% |
| 2020-06-01 | 3.67% | 3.10% |
| 2020-07-01 | 3.52% | 2.99% |
| 2020-08-01 | 3.61% | 2.93% |
| 2020-09-01 | 3.45% | 2.90% |
| 2020-10-01 | 3.39% | 2.84% |
| 2020-11-01 | 3.35% | 2.82% |
| 2020-12-01 | 3.22% | 2.74% |
| 2021-01-01 | 3.25% | 2.68% |
| 2021-02-01 | 3.21% | 2.63% |
| 2021-03-01 | 3.27% | 2.50% |
| 2021-04-01 | 3.27% | 2.41% |
| 2021-05-01 | 3.25% | 2.30% |
| 2021-06-01 | 3.30% | 2.20% |
| 2021-07-01 | 3.27% | 2.14% |
| 2021-08-01 | 3.29% | 2.08% |
| 2021-09-01 | 3.33% | 2.15% |
| 2021-10-01 | 3.27% | 2.13% |
| 2021-11-01 | 3.28% | 2.12% |
| 2021-12-01 | 3.28% | 2.21% |
| 2022-01-01 | 3.34% | 2.27% |
| 2022-02-01 | 3.43% | 2.40% |
| 2022-03-01 | 3.37% | 2.73% |
| 2022-05-01 | 3.81% | 3.64% |
| 2022-04-01 | 3.54% | 3.11% |
| 2022-06-01 | 4.24% | 3.93% |
| 2022-07-01 | 4.91% | 4.35% |
| 2022-08-01 | 5.08% | 4.97% |
| 2022-09-01 | 5.78% | 5.39% |
| 2022-10-01 | 5.54% | 5.88% |
| 2022-11-01 | 5.66% | 6.52% |
| 2022-12-01 | 6.32% | 6.92% |
| 2023-01-01 | 6.65% | 7.04% |
| 2023-02-01 | 6.82% | 7.04% |
| 2023-03-01 | 6.83% | 7.21% |
| 2023-04-01 | 6.70% | 7.01% |
| 2023-05-01 | 6.39% | 7.03% |
| 2023-06-01 | 6.52% | 7.23% |
| 2023-07-01 | 6.35% | 7.50% |
| 2023-08-01 | 7.07% | 7.68% |
| 2023-09-01 | 6.96% | 7.67% |
| 2023-10-01 | 6.18% | 7.71% |
| 2023-11-01 | 7.56% | 7.78% |
| 2023-12-01 | 7.56% | 7.72% |
| 2024-01-01 | 7.56% | 7.49% |
| 2024-02-01 | 7.81% | 7.25% |
| 2024-03-01 | NA | 7.25% |
| 2024-04-01 | 6.93% | 7.30% |
| 2024-05-01 | NA | 7.39% |
| 2024-06-01 | NA | 7.46% |
| 2024-07-01 | 7.68% | 7.41% |
| 2024-08-01 | 7.93% | 7.21% |
| 2024-09-01 | NA | 6.86% |
Historic Rates
| Date | Fixed Rate | Adjustable Rate |
| 2015-01-01 | 4.87% | 2.86% |
| 2015-02-01 | 4.94% | 2.93% |
| 2015-03-01 | 4.91% | 3.00% |
| 2015-04-01 | 4.90% | 3.11% |
| 2015-05-01 | 4.89% | 3.13% |
| 2015-06-01 | 4.87% | 3.17% |
| 2015-07-01 | 4.85% | 3.24% |
| 2015-08-01 | 4.89% | 3.24% |
| 2015-09-01 | 4.90% | 3.24% |
| 2015-10-01 | 4.92% | 3.26% |
| 2015-11-01 | 4.88% | 3.32% |
| 2015-12-01 | 4.89% | 3.40% |
| 2016-01-01 | 4.90% | 3.51% |
| 2016-02-01 | 4.90% | 3.62% |
| 2016-03-01 | 4.88% | 3.80% |
| 2016-04-01 | 4.92% | 3.91% |
| 2016-05-01 | 4.89% | 4.01% |
| 2016-06-01 | 4.88% | 4.09% |
| 2016-07-01 | 4.92% | 4.14% |
| 2016-08-01 | 4.91% | 4.26% |
| 2016-09-01 | 4.89% | 4.42% |
| 2016-10-01 | 4.83% | 4.49% |
| 2016-11-01 | 4.87% | 4.57% |
| 2016-12-01 | 4.84% | 4.64% |
| 2017-01-01 | 4.84% | 4.67% |
| 2017-02-01 | 4.81% | 4.64% |
| 2017-03-01 | 4.90% | 4.56% |
| 2017-04-01 | 4.93% | 4.48% |
| 2017-05-01 | 4.91% | 4.43% |
| 2017-06-01 | 4.95% | 4.40% |
| 2017-07-01 | 4.92% | 4.41% |
| 2017-08-01 | 4.92% | 4.46% |
| 2017-09-01 | 4.92% | 4.45% |
| 2017-10-01 | 4.90% | 4.48% |
| 2017-11-01 | 4.94% | 4.55% |
| 2017-12-01 | 4.91% | 4.61% |
| 2018-01-01 | 4.88% | 4.64% |
| 2018-02-01 | 4.84% | 4.67% |
| 2018-03-01 | 4.71% | 4.66% |
| 2018-04-01 | 4.68% | 4.74% |
| 2018-05-01 | 4.64% | 4.85% |
| 2018-06-01 | 4.61% | 4.85% |
| 2018-07-01 | 4.57% | 4.84% |
| 2018-08-01 | 4.63% | 4.83% |
| 2018-09-01 | 4.60% | 4.79% |
| 2018-10-01 | 4.60% | 4.81% |
| 2018-11-01 | 4.67% | 4.89% |
| 2018-12-01 | 4.71% | 5.00% |
Top Cities by Total HECM Originations
| Rank | City | Zip | Total |
| 1 | LOS ANGELES | 90047 | 1,521 |
| 2 | LINCOLN | 95648 | 1,505 |
| 3 | PALM DESERT | 92211 | 1,194 |
| 4 | OCEANSIDE | 92056 | 1,104 |
| 5 | LOS ANGELES | 90043 | 1,074 |
| 6 | HESPERIA | 92345 | 1,051 |
| 7 | BANNING | 92220 | 1,026 |
| 8 | PALM DESERT | 92260 | 955 |
| 9 | ROSEVILLE | 95747 | 945 |
| 10 | LOS ANGELES | 90044 | 926 |
| 11 | NORWALK | 90650 | 917 |
| 12 | SUN CITY | 92586 | 890 |
| 13 | MISSION VIEJO | 92692 | 882 |
| 14 | SAN DIEGO | 92117 | 859 |
| 15 | SAN DIEGO | 92128 | 828 |
| 16 | SAN DIEGO | 92114 | 818 |
| 17 | HEMET | 92545 | 804 |
| 18 | OCEANSIDE | 92057 | 800 |
| 19 | COMPTON | 90220 | 791 |
| 20 | HUNTINGTON BEACH | 92646 | 783 |
| 21 | APPLE VALLEY | 92308 | 767 |
| 22 | LOS ANGELES | 90016 | 738 |
| 23 | ALTADENA | 91001 | 720 |
| 24 | LAGUNA NIGUEL | 92677 | 677 |
| 25 | CAMARILLO | 93012 | 673 |
| 26 | LA PUENTE | 91744 | 671 |
| 27 | FALLBROOK | 92028 | 669 |
| 28 | LA QUINTA | 92253 | 668 |
| 29 | LA MIRADA | 90638 | 663 |
| 30 | MURRIETA | 92563 | 656 |
Want to learn more? Click here to get free information about a reverse mortgage in California!
Department of Housing and Urban Development Offices
Los Angeles
Serving: Los Angeles, Ventura, Santa Barbara, San Luis Obispo, Mono, Inyo, San Diego and Imperial Counties
AT&T Building
611 West Sixth Street, Suite 801
Los Angeles, CA 90017
(213) 894-8000
San Francisco
Serving: San Francisco, Alameda, Contra Costa, Marin, Napa, San Mateo, Santa Clara, Sonoma, Solano, Santa Cruz, San Benito, Monterey, Del Norte, Humbolt, Mendocino and Lake Counties; Northern 23 California Counties: Alpine, Amador, Butte, Calaveras, Colusa, El Dorado, Glenn, Lassen, Modoc, Nevada, Placer, Plumas, Sacramento, San Joaquin, Shasta, Sierra, Siskiyou, Sutter, Tehama, Trinity, Tuolumne, Yolo, and Yuba Counties; Stanislaus, Madera, Merced, Mariposa, Fresno, Kings, Tulare and Kern Counties in California’s Central Valley
1 Sansome Street, Suite 1200
San Francisco, CA 94104
(415) 489-6771
Santa Ana
Serving: Orange, San Bernardino, and Riverside Counties
34 Civic Center Plaza, Room 7015
Santa Ana, CA 92701-4003
(714) 796-5577
Local California Housing Counselors
You’ll need to complete mandatory counseling before finalizing your CA HECM loan, either over the phone or in person. Here is a directory of counselors in California:
VENTURA COUNTY COMMUNITY DEVELOPMENT CORPORATON
2231 STURGIS ROAD, SUITE A
OXNARD, CA 93030-7813
(805) 273-7800
www.vccdc.org
NEIGHBORWORKS ORANGE COUNTY
128 E KATELLA AVE STE 200
ORANGE, CA 92867-4850
(714) 490-1250
http://www.nwoc.org
INLAND FAIR HOUSING AND MEDIATION BOARD
1500 S HAVEN AVE STE 100
ONTARIO, CA 91761-2970
(909) 984-2254
http://www.ifhmb.com
BALANCE – SAN FRANCISCO
1390 MARKET STREET, SUITE 200
SAN FRANCISCO, CA 94102-5404
(800) 777-7526
https://www.balancepro.org/
PROJECT SENTINEL
554 VALLEY WAY
MILPITAS, CA 95035-4106
(408) 470-3730
http://housing.org/
CREDIT.ORG – RIVERSIDE
4351 LATHAM ST
RIVERSIDE, CA 92501-1749
(866) 896-7965
http://www.homeownership.org/
CREDIT.ORG – HEMET
1555 WEST FLORIDA AVE. HEMET, CA 92543
HEMET, CA 92543-3814
(855) 736-7782
http://www.homeownership.org/
CREDIT.ORG – LADERA
555 CORPORATE DR STE 110
LADERA RANCH, CA 92694-2177
(844) 263-9857
http://www.homeownership.org/
NEIGHBORHOOD PARTNERSHIP HOUSING SERVICES, INC.
9551 PITTSBURGH AVE
RANCHO CUCAMONGA, CA 91730-6008
(909) 988-5979
http://nphs.info
MONEY MANAGEMENT INTERNATIONAL – CAMARILLO, CA
80 N WOOD RD STE 200
CAMARILLO, CA 93010-8311
(805) 383-7700
http://www.surepath.org
CLEARPOINT CREDIT COUNSELING SOLUTIONS – COMMERCE BRANCH
6055 E WASHINGTON BLVD SUITE 390
COMMERCE, CA 90040-2449
(877) 877-1995
http://www.clearpointccs.org
CLEARPOINT CREDIT COUNSELING SOLUTIONS – GRANADA HILLS BRANCH
16800 DEVONSHIRE ST SUITE 301
GRANADA HILLS, CA 91344-7403
(877) 877-1995
http://www.clearpointccs.org
CLEARPOINT CREDIT COUNSELING SOLUTIONS – GLENDALE BRANCH
200 N MARYLAND AVE STE 102
GLENDALE, CA 91206-4275
(877) 877-1995
http://www.clearpointccs.org
GUIDEWELL FINANCIAL SOLUTIONS – WEST COVINA
1050 LAKES DR SUITE 225
WEST COVINA, CA 91790-2924
(323) 637-0847
http://www.cccsmd.org
NAVICORE SOLUTIONS- SAN DIEGO, CA
3530 CAMINO DEL RIO N SUITE 110
SAN DIEGO, CA 92108-1743
(619) 296-4700
http://www.navicoresolutions.org
NATIONAL ASSOCIATION OF REAL ESTATE BROKERS-INVESTMENT DIVISION, INC
7677 OAKPORT STREET, SUITE 1030, 10TH FL
OAKLAND, CA 94621-1929
(510) 268-9792
https://www.nidhousing.com/
HOMETOWN COMMUNITY DEVELOPMENT CORP, DBA HOMESTRONG USA
8711 MONROE CT STE A
RANCHO CUCAMONGA, CA 91730-4898
(877) 647-8764
http://www.homestrongusa.org
Want to learn more? Click here to get free information about a reverse mortgage!
