California Reverse Mortgages

At All Reverse Mortgage, Inc. (ARLO™), we’re proud to be California’s #1 Rated Reverse Mortgage, with 20+ years of dedicated service. Thanks to our commitment to offering the best terms and outstanding customer service, we’ve earned an A+ rating from the Better Business Bureau and perfect 5-star Reviews.

Since 2004, our mission has been to provide California homeowners peace of mind through our HUD-Approved HECM & Jumbo Reverse Mortgages. We’re here to help you maximize your home’s equity with competitive rates and lower costs.

Let us show you the difference our experience can make—we look forward to guiding you every step of the way!

California reverse mortgage statistics infographic showing homeowners age 62 plus, loans closed in the last 12 months, number of lenders, and median home value in California for 2026

California Reverse Mortgage Facts

Top 10 Reverse Mortgage Cities in California
1   Los Angeles
2   San Diego
3   Huntington Beach
4   Sacramento
5   West Hills
6   Oceanside
7   Santa Cruz
8   Carlsbad
9   Westminster
10   Sylmar

Data by MCA (January 2026)

California Reverse Mortgage Statistics (2026 Update)

StateHomeowners Age 62+Reverse Mortgages Closed Last 12 MonthsLenders in CaliforniaMedian Home Value
California6 Million4,83779$793,200

How this data was derived: Reverse mortgage counts reflect FHA-insured HECM loans endorsed over a rolling 12-month period (Dec 2024–Nov 2025) using HUD HECM Snapshot data. Active lenders represent unique FHA sponsor numbers with at least one endorsed loan during this period. Estimated homeowners age 62+ are based on U.S. Census ACS 5-year owner-occupied households age 65+ as a conservative proxy. Home values are sourced from Zillow’s Home Value Index (latest available).

Top 20 Reverse Mortgage Lenders in California

LenderBBB RatingAccreditedYears in BusinessCustomer Rating (0–5)% Positive ReviewsComplaintsSource
All Reverse Mortgage, Inc. (ARLO)A+YES214.94/599.0%0Source
American Pacific MortgageFNO281.75/535.0%6Source
CrossCountry Mortgage, LLC.FYES221.43/529.0%303Source
Fairway Independent MortgageA+YES294.51/590.0%26Source
Finance of America Reverse LLC (FAR)A+YES223.71/574.0%36Source
Goodlife Home LoansA+YES13N/A (Not enough reviews)N/A (Not enough reviews)1Source
Guaranteed RateA+YES262.25/5450%45Source
Guild Mortgage Company LLCA+NO651.55/531.0%73Source
HighTechLending IncA+YES194.94/599.0%1Source
Liberty Home Equity Solutions Inc.A+NO221.00/520.0%1Source
Longbridge Financial LLCA+YES133.77/575.0%34Source
Luminate BankNRNO84NANANASource
MCM HoldingsA+YES27NANANASource
The Money HouseNRNO28NANA0Source
Movement Mortgage, LLCA+NO184.43/589.0%92Source
Mutual of Omaha MortgageA+YES123.31/566.0%65Source
New American FundingA+YES264.65/593.0%147Source
Plaza Home Mortgage IncA+YES242.67/553.0%6Source
Smartfi Home LoansA+YES6N/A (Not enough reviews)N/A (Not enough reviews)0Source
South River Mortgage, LLCA+NO63.79/576.0%14Source
Source: Data compiled from https://www.rminsight.net/hecm-lenders-september-2025/ RMInsight (Top 20 HECM Lenders, October 1, 2025 and Better Business Bureau reviews updated as of December 10, 2025)

About All Reverse Mortgage, Inc.

Reverse mortgages are all we do.

Our team has more than 20 years of experience helping older homeowners understand reverse mortgage options clearly and responsibly.  In 2006, we were part of the team that introduced the first fixed-rate jumbo reverse mortgage, giving us long-standing experience with both FHA-insured HECM loans and proprietary jumbo programs.

That experience is particularly relevant in markets like California, where:

  • Home values can vary significantly by neighborhood
  • FHA lending limits are sufficient for many homes, but not all
  • Proprietary programs can differ in structure, costs, and consumer protections

Our goal is to clearly explain these distinctions so homeowners can evaluate their options with a full understanding of potential outcomes.

Reverse mortgages aren’t a side business for us—they’re our only business.  Since 2004, we’ve been helping homeowners navigate their options with clarity and care.  Meet our team.

California Reverse Mortgage Lending Limits

California, known as “The Golden State,” is the most populous state in the U.S., with nearly 40 million residents. Of these, almost two million are homeowners aged 62 and older, making them eligible for a reverse mortgage to help expand their financial options.

As of January 2026, the median home value in California is $793,200, which is below the HECM reverse mortgage lending limit of $1,249,125. This means many California homeowners can take advantage of a reverse mortgage to tap into their home’s equity.

If you’re a California homeowner aged 62 or older, All Reverse Mortgage, Inc. (ARLO™) is here to help you explore how a reverse mortgage can fit into your retirement plans. We’re ready to answer any questions you have and guide you through the process.


Frequently Asked Questions: California-Specific Answers

Q.

Will I lose my Prop 13 tax protection?

No, you will not lose your Proposition 13 tax protection. The amount or type of mortgage against your home has no impact on the proposition 13 tax law. Your property taxes are capped at a maximum of 2% increase per year or at the rate of inflation, whichever is lower. Property taxes are subject to reassessment when the home is sold, transferred or new construction occurs.
Q.

Do I need earthquake insurance?

No, earthquake insurance is not mandatory for FHA and reverse mortgage loans. However, you are not prohibited from obtaining earthquake insurance voluntarily on your home should you wish to protect your home in the event of an earthquake.
Q.

Can I use a reverse mortgage to buy a home in California?

Yes! A reverse mortgage can be used to purchase a new home in the state of California. The HECM for purchase program was introduced by FHA back in 2009 allowing eligible borrowers to use a reverse mortgage to buy their next home as the financing instrument. The HECM for Purchase program follows the same guidelines for determining the available loan amount as it is based on the age of the youngest borrower or spouse and current interest rates and just like a traditional reverse mortgage there is no mandatory monthly mortgage payment required.
Q.

What happens if my home loses value?

Reverse mortgages are “non-recourse” loans, which means that you can never owe more than the value of your home at the time the loan reaches maturity. If your home value decreases after obtaining a reverse mortgage loan, that would have no impact on your loans standing as the future value of the home does not affect the available terms on your reverse mortgage loan. Your homes future value only impacts the equity position you have in the property and the potential proceeds from the sale of the property should the property be sold in the future. Reverse mortgage loans remain in good standing regardless of home value so long as the borrower is living in the property as their primary residence, making on time payment of property taxes, homeowners insurance, HOA dues (if any) and maintaining the overall upkeep of the property.
Q.

Can my spouse stay in the home if I die?

Short answer is it depends. On the Home Equity Conversion Mortgage (HECM) loan program insured through FHA, there are protections for spouses including spouses who are not borrowers on the reverse mortgage loan. If a married couple apply for a HECM loan together as co-borrowers, then the spouse can stay in the home if their spouse were to pass away, because the loan remains in good standing so long as one of the borrowers remains in the home and maintains the taxes, insurance, etc. Additionally, if one of the spouses on a HECM loan was an “eligible” non-borrowing spouse at the time of application and remains “eligible” throughout the life of the loan, they can opt for a deferral period to allow them to remain in the property for their rest of their life as long as they occupy the home as their primary residence and maintain the taxes, insurance, etc. as would be required of a borrower. To be “eligible” at time of application they must be legally married and occupying the property as their primary residence. To remain “eligible” they would have to be legally married still and living in the home as their primary residence at the time the borrower passed away. Eligible Non-Borrowing Spouses are not permitted to access any funds available in the Line of Credit or to receive any scheduled monthly loan payments if a payment plan was in place. Only borrowers are able to access available funds from the loan. For HECM loans, there are instances where the spouse cannot stay in the home if the borrower passes away unless they pay the loan off in full. If they were deemed “ineligible” at time of application or became “ineligible” during the life of the loan, they would not be eligible to opt for the deferral after the passing of the borrower and the loan would be due and payable. An ineligible spouse would be one that does not occupy the property at time of loan application. Additionally, any spouse who marries a reverse mortgage borrower after they obtained their loan would also be ineligible whether they occupied the property or not because they were not factored into the loan parameters and calculations at the time of making the loan. A spouse can become ineligible over time even if they were eligible at time of application and those would be spouses who divorced or moved out of the home at any point after the reverse mortgage loan was obtained. As of February 2026, non-FHA reverse mortgages often referred to as Proprietary or Jumbo reverse mortgages do not have any spousal protections in place. If your spouse is not a borrower on that loan, they cannot stay in the home after you die unless they pay off the reverse mortgage loan through their own means such as cash on hand, a new loan, life insurance proceeds, etc.
Q.

Do I qualify if I have a trust?

Short answer is maybe. Unlike traditional or “forward” mortgages reverse mortgage loans are permitted to be closed in the name of the trust. It is a common practice in the traditional lending space to ask homeowners with a trust to transfer title out of their trust in order to close on their new loan and force them to have to transfer title back into the trust after their loan is consummated causing hassle and additional costs for the homeowner. Reverse mortgage loans do not permit transfer of the property title after the loan is made without obtaining approval first from the loan servicer. In order to keep the property in the trust, the full trust itself must be reviewed (Excluding the advanced health care directives, Powers of Attorney (unless being used for an incapacitated borrower), Last Will and Testament as they are not necessary) to determine that the trust meets the FHA program guidelines. The overwhelming majority of standard revocable family trusts in our experience end up meeting the requirements but until the full trust is reviewed we as a lender cannot advise if your trust is eligible.
Q.

What if I need to move to assisted living?

A reverse mortgage loan would become due and payable if you have vacated the home for 12 consecutive months. Additionally, any consecutive absence of 60 days or longer would need to be communicated to the servicing department to ensure that the home is cared for in your absence. If a short-term stay at an assisted living or skilled nursing facility is necessary to rehab a surgery for example, that can be ok if it is short term and then you are going to be back in your home after that. A long-term or permanent move to an assisted living facility would necessitate the borrower to satisfy the reverse mortgage loan. The loan can be satisfied by refinancing it to a traditional mortgage, paying off with other funds or selling the property. If you are considering a reverse mortgage and you can see yourself needing or wanting to move to assisted living in the next 3-5 years you would need to consider whether a reverse mortgage makes sense given the upfront costs. Many Californians use reverse mortgage proceeds specifically to pay for in-home care delaying the need to move.
Q.

Can I pay off the loan early without penalty?

Yes, by law there are no prepayment penalties on reverse mortgage loans. You can make voluntary payments at any time to reduce your balance or pay off the loan entirely. Some borrowers make voluntary payments on a regular basis to reduce the amount owed on the loan and to increase their line of credit availability for later years.
Q.

How does this affect my eligibility for Medi-Cal?

Having a reverse mortgage loan on your home in and of itself does not usually affect Medi-Cal eligibility. It is our understanding that Medi-Cal eligibility is determined by ones household income and their available assets in their bank accounts. Funds available to you in your reverse mortgage line of credit should not be factored into that equation. However, if you advance funds from a reverse mortgage loan to your bank account and leave the funds in there, there is a possibility you could compromise your eligibility for Medi-Cal. It is important to consult with an elder law attorney before getting a reverse mortgage if you’re receiving or planning to apply for Medi-Cal.
Q.

Can I rent out a room with a reverse mortgage?

Yes, you can rent out a room or even multiple rooms as long as you continue to live in the home as your primary residence. The entirety of the property cannot be rented. For example, if you have a 3 bedroom home, it is permissible to rent out two of the bedrooms so long as you reside in the 3rd. Additionally, if your property has an Accessory Dwelling Unit (ADU) or in-laws quarters you are not permitted to reside in that structure and must live in the main home. In the current California housing market, it is becoming more and more common for senior homeowners to rent out a room or two to supplement their income.
Q.

What’s the difference between a reverse mortgage and a HELOC?

Key differences:

Feature Reverse Mortgage HELOC
Monthly payments None required Required (interest + principal)
Age requirement 62+ Any age (18+)
Income verification Yes (financial assessment) Yes (strict debt-to-income)
Upfront costs High ($20K-$30K) Low ($0-$500)
Best for Eliminating payments, long-term cash flow Short-term needs, renovations
Q.

Should I get a reverse mortgage to pay off credit card debt?

Short answer is Maybe, and definitely tread carefully. Reverse mortgage proceeds can be used for any legal purpose you see fit, so you can definitely use the proceeds you receive from a reverse mortgage to pay off credit card balances. However, if you are likely to run up the credit card balances again after paying them off, you’ve actually made your situation worse, not better. If the reverse mortgage can provide you with a long term sustainable solution that would eliminate your credit card balances and provide you with the resources to avoid running them up again, then it could be a good option to consider.

HUD-Approved Reverse Mortgage Counseling Agencies in California

NameAgency IDAddressPhoneWeb Site
BALANCE - CONCORD902421655 Grant St, Concord, California, 94520-2600(800) 777-7526balancepro.org
BALANCE - SAN FRANCISCO806463543 18th St, San Francisco, California, 94110-1683(800) 777-7526balancepro.org
BALANCE - SANTA ROSA817213033 Cleveland Ave, Santa Rosa, California, 95403-2126(800) 777-7526balancepro.org
BALANCE-SF 3RD STREET907425172 3rd St, San Francisco, California, 94124-2302(888) 456-2227balancepro.org
CAROLYN E. WYLIE CENTER FOR CHILDREN, YOUTH906774164 Brockton Ave, Riverside, California, 92501-3400(951) 683-5193wyliecenter.org
CREDIT.ORG827221825 Chicago Ave, Riverside, California, 92507-2367(951) 414-2454credit.org
CREDIT.ORG - NATIONAL CITY902732140 Hoover Ave, National City, California, 91950-6514(619) 830-4802credit.org
CREDIT.ORG - RIVERSIDE847011450 Iowa Ave Ste 200, Riverside, California, 92507-0508(800) 947-3752credit.org
GREENPATH FINANCIAL WELLNESS903512525 Main St, Irvine, California, 92614-6682(888) 860-4167greenpath.org
INLAND FAIR HOUSING AND MEDIATION BOARD800343175 Sedona Ct Ste D, Ontario, California, 91764-6561(800) 321-0911ifhmb.com
MY WAY HOME840582231 Sturgis Rd Unit A, Oxnard, California, 93030-7813(805) 273-7800mywayhome.org
NATIONAL ASSOCIATION OF REAL ESTATE BROKERS-INVESTMENT807597677 OakPort Street, Suite 1030, 10th Fl, OAKLAND, California, 94621-1929(510) 268-9792nidhousing.com
NEIGHBORHOOD PARTNERSHIP HOUSING SERVICES, INC.811109551 Pittsburgh Ave, Rancho Cucamonga, California, 91730-6008(909) 988-5979nwoc.org
NHS OF ORANGE COUNTY dba NEIGHBORWORKS ORANGE816051748 W Katella Ave Ste 202, Orange, California, 92867-3430(714) 490-1250nwoc.org
COUNTY9044923945 Sunnymead Blvd, MORENO VALLEY, California, 92553-3025(951) 399-4538nidhousing.com
PROJECT SENTINEL818001490 El Camino Real, Santa Clara, California, 95050-4609(408) 720-9888housing.org
The information presented in this table was obtained from the U.S. Department of Housing and Urban Development (HUD) at https://answers.hud.gov/housingcounseling as of January 22, 2026.

Did you know? California does not mandate in-person counseling. Visit our counseling page for a list of phone-based counseling agencies, and you can conduct your required counseling from the comfort of your home.


Ready to Unlock Your Home’s Equity?

As California’s #1 Rated Reverse Mortgage Lender, All Reverse Mortgage, Inc. (ARLO™) is here to provide trusted guidance, real-time rates, and expert support to help you make informed decisions.

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All Reverse Mortgage, Inc. is fully licensed by California’s Department of Financial Protection & Innovation under Residential Mortgage Lending Act License #4131229 and the California Department of Real-Estate, License #01460013.

Get Your Reverse Mortgage Quote from California’s #1 Rated Reverse Mortgage Lender* or call (800) 565-1722 to speak with a licensed expert.

Other Areas of Interest in California

Alameda County Anaheim Brentwood Carlsbad Contra Costa County Corona Escondido Fontana Fresno Hemet Huntington Beach Indio Irvine Lincoln Long Beach Los Angeles Mission Viejo Modesto Moreno Valley Mount Shasta Murrieta Napa Novato Oakland Oceanside Orange County Palm Desert Palm Springs Riverside Roseville Sacramento San Bernardino County San Diego San Francisco San Jose San Rafael Santa Clara County Santa Clarita Santa Cruz Santa Rosa Sonoma Sun City Sylmar Ventura County West Hills Westminster Whittier

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