How Reverse Mortgages Work
Reverse Mortgages for Seniors
Instead of you paying the bank every month, a reverse mortgage allows the bank to make your equity available to you. You can choose to receive your funds in any of the following ways:
- A monthly payment
- A lump sum
- A line of credit that grows over time
- Or a combination of these options
And as long as you live in the home and meet loan requirements, no monthly mortgage payments are needed.
(You will still be responsible for property taxes, insurance, and home upkeep.)
This flexibility is one of the many reasons Long Beach homeowners explore a reverse mortgage—especially those living on a fixed income or those who want more financial cushion.
Reverse Mortgages & Adult Children
Helping Long Beach families make confident, informed decisions together
At Long Beach Reverse Mortgage, I frequently work with adult children who want to help their parents understand whether a reverse mortgage is the right choice. These conversations can feel emotional or overwhelming, but they don’t have to be.
A reverse mortgage can be an excellent tool for Long Beach senior homeowners who want financial stability, independence, or help with rising living or medical expenses — without relying on their children or selling their home.
This section is specifically written for families navigating those decisions together.
How They Work & How You Qualify
A clear, friendly explanation from Long Beach Reverse Mortgage
The amount you can borrow depends on your age, your home’s value, and your equity. I’ll provide a personalized breakdown so you can see your exact loan options.
Yes! You remain the legal owner of your home, and your name stays on the title. You can continue to live in your home and decide when to sell.
No monthly mortgage payments are required. You can choose to receive your loan funds in monthly payments, a lump sum, or a line of credit.
To qualify, you need to be 62 or older, own your home, and meet basic income and credit guidelines. We can help you through the entire process.
The Reverse Mortgage Closing Process (Step-by-Step)
Here’s exactly what to expect from start to finish:
Step 1 — Initial Consultation
We discuss:
- Your goals
- Your budget
- Eligibility
- Loan options
- Questions and concerns
This can be done by phone, Zoom, or in person.
Step 2 — Underwriting
The lender reviews:
- Income (light review — reverse mortgages don’t require “traditional” income)
- Property taxes & insurance
- Appraisal
- Home condition
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Underwriting time is usually 1–3 weeks depending on market conditions.
Step 3 — Mandatory HUD Counseling
You complete independent counseling (by phone or Zoom) with a HUD-approved agency.
This ensures:
- You understand the program
- You can ask questions
- No one is rushed or pressured
HUD counseling is a federal requirement for your protection.
Step 4 — Appraisal & Property Review
An FHA-approved appraiser evaluates your home.
If repairs are needed, I will guide you through your options (including lender holdbacks).
Step 5 — Application & Disclosures
You review and sign preliminary disclosures.
Nothing becomes permanent yet — this just lets us begin the process.
Step 6 — Final Closing Disclosure
You receive a final statement of all loan terms and fees.
Everything is clear and easy to understand.
Step 7 — Loan Signing
You sign your final loan documents with:
- A notary
- In person or mobile signing
- At home or another location
Step 8 — 3-Day Right of Rescission
For primary residences, federal law gives you 3 business days to change your mind for any reason.
Funds are not disbursed during this time.
Step 9 — Closing & Funding
After the rescission period:
- Existing mortgages are paid off
- Your line of credit or monthly payments begin
- Lump sums are disbursed as applicable
- You receive confirmation from the lender
You now have a fully active reverse mortgage.