Home Equity Options for Seniors in Los Angeles County

Los Angeles County Programs That May Lower Your Annual Tax Bill

Lowering what the house costs each year is often the first thing to look at before borrowing against it.

The tax bill and its due dates. The Los Angeles County Treasurer and Tax Collector's 2026-2027 bill insert gives these dates for that tax year:

• First installment. It is due November 1 and becomes delinquent at the close of business on December 10.
• Second installment. It is due February 1 and becomes delinquent at the close of business on April 10.

If a delinquency date falls on a Saturday or Sunday, the Tax Collector extends it to the close of business on the next business day. A late payment draws a 10 percent penalty on each installment, plus a $10 cost on the second installment. The Tax Collector also accepts partial payments, which reduce the penalties imposed.

The homeowners' exemption. California law sets this exemption at $7,000 of the dwelling's full value (Cal. Rev. & Tax. Code § 218). It generally does not apply to a home that is rented, vacant, or a vacation or second home. The county insert says the exemption is available to an eligible owner who lives in the home as a principal residence as of January 1. The county's Office of the Assessor is responsible for property valuations.

State property tax postponement. The California State Controller's Property Tax Postponement Program lets eligible homeowners defer current-year property taxes on their principal residence. It is open to homeowners who are seniors, are blind, or have a disability. For 2026-27, the criteria published by the State Controller include at least 40 percent equity in the home and household income of $57,002 or less, among other requirements. These program figures are set for a given year and are published on the Controller's page. State law requires the 40 percent equity test to be met each time a claim is filed (Cal. Rev. & Tax. Code § 20583). The postponed taxes are secured by a lien on the property that must eventually be repaid. The 2026-27 filing period runs from October 1, 2026, to February 10, 2027.

If a tax bill is part of what is straining the budget, relief may already exist before any borrowing is considered.

Borrowing Against Your Home While Keeping Your Mortgage

Some homeowners want to borrow against the house while keeping their current mortgage arrangement. Two common ways to do that are a home equity loan and a home equity line of credit.

How a home equity loan works. A home equity loan is a single lump sum borrowed against the home. It is usually repaid in fixed monthly installments, so the payment is known from the start.

How a HELOC works. A home equity line of credit, or HELOC, works more like a credit card secured by the house. The borrower draws what is needed during a set draw period, then repays during a repayment period. Because the amount drawn can change over time, the monthly cost can change too. The draw period, the repayment period and how the rate is set are terms in the lender's disclosures.

What the two have in common. Both are secured by the home, and both usually carry monthly payments. The Consumer Financial Protection Bureau's reverse mortgage guide notes that these loans might be a cheaper way to borrow against equity. It also notes that they carry their own risks and depend on income and credit. Missed payments on a loan secured by the house can put the home at risk.

How much can be borrowed. Lenders set their own requirements for how much equity must remain after the loan. That limit varies from lender to lender.

What the payment depends on. The monthly cost depends on three things: the amount borrowed, the interest rate and the term. The lender discloses these before closing. For a household on a fixed income, the central question is whether that payment fits month after month. A second question is whether the purpose of the money justifies a long obligation.

For a household on a fixed income, the steadiness of that monthly payment is the heart of the decision.

Cash-Out Refinancing: Replacing the Existing Mortgage

A homeowner who still has a mortgage may wonder whether to start over with a new one. A cash-out refinance replaces the existing mortgage with a new, larger mortgage, and the homeowner receives the difference in cash.

The new loan comes with a new interest rate and a new monthly payment. That payment may be higher or lower than the current one, depending on rates at the time and on how much is borrowed.

Refinancing means qualifying for a new mortgage again. The lender looks at income, credit and equity. On a fixed income, the question is whether the new payment can be carried for the full term.

The main difference from a HELOC is where the loan sits. A cash-out refinance replaces the first mortgage. A HELOC adds a second loan on top of the first one. A side-by-side view appears in home equity options for seniors.

What a Reverse Mortgage Actually Requires in Los Angeles County

A reverse mortgage is a loan against a home's equity with no monthly mortgage payments while the borrower lives in the home as a principal residence. The rules are federal, so they are the same in Los Angeles County as anywhere else.

The Home Equity Conversion Mortgage, or HECM, is the reverse mortgage program of the Federal Housing Administration (FHA). The program is authorized by 12 U.S.C. § 1715z-20. HUD's HECM page says it is the only reverse mortgage insured by the federal government and is available only through an FHA-approved lender.

Reverse mortgages outside the HECM program. Some reverse mortgages are offered outside the HECM program, often called proprietary reverse mortgages. They are not federally insured, so their terms are set by the lender rather than by the federal program described here.

The CFPB's explanation of reverse mortgages says a HECM is only for homeowners who are 62 and older.

The statute lets the borrower choose how payments are made. The choices include:

• A line of credit
• Monthly payments for a set term
• Monthly payments for as long as the borrower lives in the home
• Combinations of these
• Any other basis the HUD Secretary considers appropriate

Any payment is made under the loan's terms and the lender's approval.

The trade-offs matter as much as the features. Interest and fees are added to the balance each month, so the amount owed grows over time. The borrower must keep living in the home as a principal residence, pay property taxes and homeowners insurance, and keep the house in good condition. The CFPB's repayment guide says a HECM must be paid off when the last surviving borrower or eligible non-borrowing spouse dies, sells the home, or no longer lives there as a principal residence. The loan may come due sooner if the taxes, insurance or upkeep are not kept current.

Before a HECM can be insured, the borrower must receive counseling from an independent third party. That counselor must discuss other options available to the homeowner, including property tax deferral.

Understanding what the loan requires day to day matters as much as understanding what it provides.

Other Paths: Downsizing, Family Arrangements, and Benefits Checks

Some of the paths that matter most involve no new loan at all.

Selling or downsizing. Selling the home and moving somewhere smaller or less costly turns equity into cash without creating a debt. The CFPB's guide observes that moving to a more affordable home may reduce overall expenses. The cost is leaving a familiar place, and that cost is real. A move can also change how the next home is assessed for property tax; the county's Office of the Assessor, which handles valuations, is the office that addresses those questions.

Family arrangements. Some families have an adult child help with household costs, or buy a share of the home. These arrangements have legal and tax consequences. An attorney and a tax adviser can explain how they apply to a particular family.

A budget and benefits check. The CFPB notes that state and local programs can help with utilities and home repairs, and that information about benefit programs is available through benefitscheckup.org. Help that is already available can shrink the gap a loan would otherwise fill.

Questions Worth Having Ready Before You Access Home Equity

A decision about the house goes more easily with a few questions in hand. These questions can be brought to a lender, a HUD-approved counselor or a licensed financial adviser:

• How much equity is in the home? This is the value minus what is owed. The home equity access calculator offers an illustration of that figure, not an offer or an amount anyone would receive.
• What is the money for? Is it a one-time need, or ongoing costs such as care or aging in place?
• Can the household carry a monthly payment? This matters for a home equity loan, a HELOC and a refinance, which all require one.
• How long will the homeowner stay? The CFPB's guide calls a reverse mortgage an expensive way to cover short-term needs if a move may come soon.
• What happens to the home later? This covers what happens when the homeowner dies or moves, and what a surviving spouse or the heirs would face.

HUD's page says a reverse mortgage counselor can be found through its HECM Counselor Roster or by calling (800) 569-4287. The CFPB notes that a homeowner can talk with a counselor even while only considering a loan.

Related guides, including ways California seniors access equity, give more background before any of those conversations.