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Reverse Mortgages in Los Angeles
Los Angeles homeowners aged 62+ are sitting on significant equity, especially those who bought before 2015. A reverse mortgage lets you access that equity without selling or making monthly payments.
Properties across LA County—from Silver Lake bungalows to Pacific Palisades estates—qualify if you have sufficient equity and the home is your primary residence. The loan balance grows over time as interest accrues, but you never owe more than the home's value when sold.
You must be at least 62 years old and own your home outright or have substantial equity. Any existing mortgage must be paid off with reverse mortgage proceeds at closing.
Lenders require a financial assessment reviewing income, credit history, and monthly expenses. You must demonstrate ability to pay property taxes, homeowner's insurance, and maintenance costs throughout the loan term.
Most reverse mortgages in California are HECMs (Home Equity Conversion Mortgages) insured by FHA. A smaller segment uses jumbo reverse mortgages for homes exceeding FHA's lending limits.
Not every lender offers reverse mortgages. SRK CAPITAL works with specialized wholesale lenders who understand LA County's unique property valuations and can structure loans for higher-value homes.
The biggest mistake I see is waiting too long. Your loan amount is based on age, home value, and interest rates—delaying often means qualifying for less money, not more.
LA homeowners frequently choose the line of credit option over lump sum. It grows over time and provides flexibility if you need funds for healthcare, home modifications, or supplementing retirement income. Unused portions continue to compound.
HELOCs and home equity loans require monthly payments and sufficient income to qualify. Reverse mortgages eliminate payments but reduce inheritance for heirs since the loan must be repaid when you move or pass away.
Selling your LA home outright gives you full equity immediately but eliminates your housing stability. A reverse mortgage lets you stay in place while accessing funds, making it ideal if you plan to age in your current home.
LA County property taxes and homeowner's insurance are non-negotiable obligations with a reverse mortgage. Failure to pay either can trigger loan default. Budget for annual tax bills and rising insurance premiums.
Condos and planned developments in areas like Century City or Downtown LA must be FHA-approved. Some HOAs impose restrictions on reverse mortgages, though this is increasingly rare. Verify approval status before applying.
Not if you pay property taxes, insurance, and maintain the home. Default only occurs if you fail these obligations or stop living there as your primary residence.
FHA insurance covers the difference. You or your heirs never owe more than the home is worth at sale.
Loan amounts depend on age, home value, and current interest rates. Older borrowers with higher-value homes qualify for larger advances.
Yes. Your name stays on the title and you maintain all ownership rights as long as you meet loan obligations.
Yes, if the condo complex is FHA-approved. Many LA condos qualify, but you must verify approval before applying.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.