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Sacramento has a large and growing population of older homeowners. Many have built significant equity over decades of ownership.
A reverse mortgage lets homeowners 62 and older convert that equity to cash. No monthly mortgage payments required.
62 years old
Minimum Age
Not required
Monthly Payments
HECM backed
FHA Insurance
Fixed or adjustable
Rate Type
Move out or pass away
Loan Due When
You must be 62 or older and live in the home as your primary residence. The home must be owned outright or have a low remaining balance.
Lenders require you to stay current on property taxes, insurance, and maintenance. Failing those triggers default.
Most reverse mortgages are HECMs — Home Equity Conversion Mortgages insured by FHA. A handful of private "jumbo" reverse mortgages exist for higher-value homes.
We shop across 200+ wholesale lenders. That matters more for jumbo reverse products, where terms vary widely by lender.
The biggest mistake I see: borrowers assume a reverse mortgage is a last resort. It's a planning tool. Used early, it can protect retirement assets.
Spouses under 62 need careful structuring. If only one spouse is on the loan, the younger spouse faces serious risk if the borrower dies.
A HELOC gives you a credit line too — but requires monthly payments and income to qualify. Reverse mortgages have no payment requirement.
Home equity loans also require payments. If cash flow is the problem, those loans solve nothing. A reverse mortgage eliminates the payment entirely.
Sacramento homeowners who bought decades ago carry substantial equity. That equity is the engine of a reverse mortgage.
As of April 2026, Sacramento remains a stable owner-occupied market. Long-term homeowners here are well-positioned to benefit from this product.
No. You keep the title. The lender places a lien, just like a regular mortgage.
Heirs can repay the loan and keep the home. Or they sell, pay off the balance, and keep remaining equity.
Yes. A HECM for Purchase lets you buy a new primary residence using reverse mortgage proceeds.
Generally no. Reverse mortgage proceeds are loan advances, not income. Consult a tax advisor for your situation.
FHA insurance covers that gap on HECMs. You or your heirs never owe more than the home is worth.
You complete a session with an approved HUD counselor before closing. It's required and typically takes about an hour.
Reverse Mortgages in Sacramento