You spent decades building equity in your home. A reverse mortgage can help you move with it, not just live off it. Here are three ways South OC homeowners are using one to rightsize, relocate, or settle a family home with less stress and more cash in their pocket.
A HECM (Home Equity Conversion Mortgage) is the reverse mortgage insured by the FHA (Federal Housing Administration). It's available to homeowners 62 and older, and it can be used to stay in your current home or to buy a new one. When you use it to buy, it's called a HECM for Purchase.
1
No monthly mortgage payment required. You keep paying property taxes, homeowners insurance, HOA dues, and upkeep, just like you do now.
2
The home stays in your name. As long as you live there and keep up with those obligations, it's yours.
3
You never owe more than the home is worth. A HECM is non recourse, which protects you and your heirs.
Option 1
Rightsize and keep your cash.
For: 62+ homeowners in a long held, two story home who want single level living, less upkeep, or to be closer to family.
Most people think there are two choices. Stay put, or sell and pay all cash for the next home, which ties most of your nest egg right back up in a house. There's a third option. Sell your current home, use part of the proceeds as a down payment on your next one, and let a HECM for Purchase cover the rest in a single closing.
Here is how it plays out. Say you sell your current home for $1.2 million and buy a single level home for $1 million.
Pay all cash
HECM for Purchase
New home price
$1,000,000
$1,000,000
You put down
$1,000,000
About $500,000
Reverse mortgage covers
$0
About $500,000
Monthly mortgage payment
None
None required
Cash left in the bank
$200,000
About $700,000
You keep paying property taxes, homeowners insurance, HOA dues and upkeep either way, and the home stays in your name. Illustrative example only, before closing and loan costs. Your down payment depends on the age of the youngest borrower, interest rates and the home's value. Exact figures come from a licensed HECM loan officer.
The tax bonus: If you're 55 or older, Prop 19 can let you carry your current property tax base to your new home anywhere in California. Smaller house, smaller tax bill, bigger cushion. Try my Prop 19 estimator.
Option 2
Buy the home you actually want.
For: 62+ buyers relocating near the grandkids, moving into South OC from out of the area, or renting after a sale.
Paying all cash often means a compromise: smaller, farther away, or full of stairs. With a HECM for Purchase, your savings become the down payment instead of the whole price. That can open the door to the single story layout, the gated community, or the neighborhood ten minutes from family. With no monthly mortgage payment required, your retirement income goes further.
Works on single family homes and FHA approved condos.
Homes valued up to the 2026 FHA limit of $1,249,125 qualify. Private "jumbo" reverse mortgages can go higher for luxury homes.
Looking at Laguna Woods Village? Many units there are cooperative units, which aren't eligible for a HECM. I'll help you sort out which homes qualify before you fall in love with one.
Option 3
What happens to Mom's house?
For: adult children and heirs of a parent who had a reverse mortgage and has passed away or moved into care.
The first question families ask is almost always "Do we owe the bank?" The answer usually brings a big sigh of relief.
You never owe more than the home is worth. Your personal savings are never on the line.
Equity above the loan belongs to the family. Sell the home and keep the difference.
If the loan is more than the home is worth, it can be settled by selling for at least 95% of the appraised value.
You have time. Families typically have six months to sell or refinance, with possible extensions up to a year.
You don't have to juggle it alone. I coordinate with the loan servicer, your estate attorney, and the buyer so the sale stays organized and calm.
How we'll work together
1
A conversation. We talk about where you are, where you want to be, and your timeline. No pressure.
2
Your numbers. I price your home and your target market. A trusted HECM specialist gives you the exact loan figures.
3
Counseling. Every borrower meets with an independent counselor approved by HUD (U.S. Department of Housing and Urban Development), so you get unbiased answers before you decide.
4
The move. I coordinate the sale, the purchase, and every professional involved, so both closings line up.
Common questions
Will the bank own my home?
No. The home stays in your name. As long as it's your primary residence and you keep up with property taxes, insurance, HOA dues, and maintenance, it's yours.
Will my kids be stuck with debt?
No. A HECM is non recourse. Your heirs never owe more than the home is worth, and any equity above the loan balance is theirs to keep.
Do I have to make monthly payments?
No monthly mortgage payment is required. You can choose to make payments if you'd like. You do still pay property taxes, homeowners insurance, HOA dues, and upkeep.
Can I combine this with Prop 19?
Yes. If you're 55 or older, Prop 19 can let you transfer your property tax base to your new home, and a HECM for Purchase can help you buy it while keeping more of your cash.
Is my home too expensive for a reverse mortgage?
HECMs can draw against home values up to $1,249,125 in 2026. For higher value homes, private jumbo reverse mortgages are available. I'll connect you with a specialist who can compare both.
Are you the lender?
No. I'm your real estate agent. I handle the sale, the purchase, and the coordination. A licensed HECM loan officer handles the loan, and I'm happy to introduce you to one I trust.
Want me to run your numbers?
I'll put together a free, no pressure snapshot of what your home could sell for, what homes in your target area cost, and a rough picture of what you'd keep paying cash versus using a HECM for Purchase.
Brandon Menchaca · Luxury Property Specialist · Coldwell Banker Global Luxury · 12 years in South OC
This page is for general education and is not a loan offer or a commitment to lend. Brandon Menchaca is a real estate agent, not a mortgage lender or loan originator. Reverse mortgage terms, eligibility, and costs vary; consult a licensed HECM loan officer and a HUD approved counselor. Borrowers must be 62 or older, occupy the home as their primary residence, and continue to pay property taxes, homeowners insurance, and HOA dues, and maintain the home. Failure to meet these obligations can result in the loan becoming due. Examples are illustrative only. Consult a tax professional about Prop 19. CalDRE #01947478. Each office independently owned and operated. Equal Housing Opportunity.
