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West Hollywood's condo-heavy market makes reverse mortgages tricky. Most lenders want single-family homes, not condos in 4-story buildings along Santa Monica Boulevard.
The city's older homeowners bought decades ago when prices were a fraction of today's values. That built equity is exactly what reverse mortgages tap into.
FHA's Home Equity Conversion Mortgage (HECM) sets borrowing limits at $1,249,125 for 2026. That covers most West Hollywood properties but not high-end penthouses.
Rates vary by borrower profile and market conditions. Current HECM rates hover around 6.5-7.5% depending on whether you choose fixed or adjustable terms.
Reverse Mortgages in West Hollywood
You must be 62 or older. Your spouse can be younger but won't access funds until they hit 62 or you pass away.
The home must be your primary residence. That means living there at least 6 months per year, not renting it to tenants or using it as a second home.
You need enough equity to cover upfront costs. Lenders won't fund if you owe more than 50-60% of your home's value.
Credit doesn't matter much, but you still need clean property taxes and homeowner's insurance. One late tax payment kills most deals.
Local decision guide
Use this guide to connect reverse mortgages eligibility, lender expectations, and local market factors before comparing payment options in West Hollywood.
West Hollywood's condo-heavy market makes reverse mortgages tricky. Most lenders want single-family homes, not condos in 4-story buildings along Santa Monica Boulevard.
The city's older homeowners bought decades ago when prices were a fraction of today's values. That built equity is exactly what reverse mortgages tap into.
FHA's Home Equity Conversion Mortgage (HECM) sets borrowing limits at $1,249,125 for 2026. That covers most West Hollywood properties but not high-end penthouses.
About 15 of our 200+ lenders handle reverse mortgages. These aren't high-volume products, so fewer wholesale lenders touch them.
AAG, Mutual of Omaha, and Finance of America dominate this space. We shop all three to find the lowest fees and best payout structures.
Upfront costs run $8,000-$15,000 for origination, appraisal, title, and FHA mortgage insurance. Some lenders roll these into the loan, others require cash.
Proprietary jumbo reverse mortgages exist for homes above HECM limits. Longbridge Financial and AAG offer these, but expect stricter terms and higher rates.
Most West Hollywood buyers asking about reverse mortgages don't actually need them. They're trying to access equity without selling, but a HELOC costs less.
The one scenario where reverse mortgages make sense: you're 70+, plan to stay in the home until death, and need monthly income without loan payments.
Heirs inherit the debt when you die. They must repay the loan or sell the property within 6 months. That shocks families who didn't read the terms.
Watch out for lenders pushing line-of-credit options with high origination fees. Most borrowers want lump sum payouts or monthly payments, not credit lines.
A HELOC gives you a credit line with monthly payments at 8-9% rates. A reverse mortgage gives you cash with zero monthly payments but higher upfront costs.
Home equity loans work if you can afford payments. Reverse mortgages work if you can't. The trade-off is you're burning equity that heirs would otherwise inherit.
Conventional cash-out refinances let you pull equity and keep a standard mortgage. You'll pay less in fees than a reverse mortgage but need income to qualify.
Equity appreciation loans are rare but useful for older borrowers. They let you access equity without payments, repaid only when you sell. We can source these for qualified borrowers.
West Hollywood's HOA fees average $400-$800 monthly. Reverse mortgage calculations factor these in, reducing how much equity you can access.
The city's rent control laws don't affect reverse mortgages, but they do affect exit strategies. If heirs want to keep the property and rent it, they face strict rent limits.
Property values here hold steady even in downturns. That stability helps reverse mortgage underwriting since lenders worry about declining collateral.
Many West Hollywood seniors live in condos built in the 1970s-1980s. Some of these buildings aren't FHA-approved, killing HECM eligibility before you even apply.
Only if the building is FHA-approved. About half of West Hollywood condos qualify. We check approval status before you waste time on an appraisal.
The loan becomes due if you're gone more than 6 consecutive months. You or your heirs must repay the balance or sell the property.
Yes, you keep the title and ownership. The lender just holds a lien that gets repaid when you sell, move out, or pass away.
Typically 40-60% of your home's value, depending on your age. Older borrowers access more equity than those just turning 62.
No, the IRS treats it as a loan advance, not income. You won't pay taxes on the money you receive from a reverse mortgage.
Yes, if they repay the reverse mortgage balance within 6 months. Most heirs sell the property and keep the remaining equity after payoff.