Riverside County Reverse Mortgage Guide

Other Paths Worth Knowing Before You Look at Borrowing

A question about money and the house often begins somewhere else: a budget that no longer balances, or a care bill. Several paths sit alongside borrowing, and each has its own trade-off.

A budget and benefits check. Reviewing income and spending, and looking at whether programs such as CalFresh, utility assistance or Medi-Cal apply, can ease the pressure without touching the home. The Riverside County Office on Aging says it administers more than 27 programs and services for older adults, disabled adults and family caregivers, free to those who meet each program's qualifications, including HelpLink information and assistance, care coordination, and the Health Insurance Counseling and Advocacy Program (HICAP).

Property tax relief. Two programs lower or delay the tax bill, and both are explained in the local context section below. The effort involved is small; with postponement, the delayed taxes are secured by a lien that is repaid later.

Help from family. Relatives may help with costs or share housing. This keeps the home free of new debt, though it depends on the family's means and agreement.

Selling or downsizing. Selling turns equity into cash with no loan balance, but it means moving. Riverside County's Assessor describes Proposition 19 rules under which owners age 55 or older who buy or build a replacement within 2 years of a sale may carry a tax base to a home anywhere in California.

A home equity loan or line of credit. A home equity loan is a lump sum borrowed against the home and repaid in monthly installments. A home equity line of credit (HELOC) is a credit line drawn on as needed, also repaid monthly. Both depend on having income to make the payments.

A cash-out refinance. This replaces the current mortgage with a larger one and pays out the difference in cash, which brings a new monthly payment.

A reverse mortgage. This removes the monthly loan payment, while the balance grows and the obligations remain. It suits some situations and not others.

Knowing what else is available means you can weigh a reverse mortgage against the full picture, not just against doing nothing.

How a HECM Actually Works for You in Riverside County

The federally insured version has a long name. A Home Equity Conversion Mortgage, or HECM, is, according to HUD, the only reverse mortgage insured by the U.S. Federal Government, available only through a lender approved by the Federal Housing Administration (FHA). HUD's page says HECM borrowers may live in their homes indefinitely as long as property taxes and homeowner's insurance are kept current. The rules are the same in Riverside County as in every other county.

Age. The youngest borrower must be 62 or older at closing (24 C.F.R. § 206.33). The California age requirements follow the same federal rule.

Principal residence. The home must be the principal residence of each borrower, and of any Eligible Non-Borrowing Spouse, at closing (24 C.F.R. § 206.39).

Property. The statute requires a dwelling designed principally for a 1- to 4-family residence in which the borrower occupies one unit, and it also covers, under conditions, cooperative units and certain leaseholds (12 U.S.C. § 1715z-20(d)(3) and (b)(4)). HUD sets further standards; the guide to reverse mortgage property requirements explains them. An existing mortgage must be paid off at closing, as the guide to a reverse mortgage with an existing mortgage describes.

How much may be available. HUD lists factors including the age of the youngest borrower or eligible non-borrowing spouse, and the lesser of the appraised value, the HECM FHA mortgage limit or the sales price. That limit, called the maximum claim amount, changes over time, and HUD publishes the current figure. No one can say in advance what a particular homeowner may receive.

Ways to receive the money. In plain terms, the law under 12 U.S.C. § 1715z-20(d)(9) gives a borrower a menu, subject to the loan's terms:

• a line of credit to draw from when a need comes up, such as a repair bill;
• a set monthly amount for a number of years the borrower chooses;
• that monthly amount for a chosen term, with a line of credit alongside it;
• a monthly amount for as long as the borrower lives in the home (called tenure);
• tenure payments with a line of credit alongside them; or
• another arrangement HUD considers appropriate.

Generally, a borrower can change from one of these to another later, though for fixed-rate loans HUD may limit that (§ 1715z-20(d)(10)).

What California Law Requires Before You Can Sign Anything

For a homeowner, the steps before any loan are designed to slow things down. That is intentional.

Counseling first. Federal law makes a HECM eligible for insurance only if the borrower has received counseling from an independent third party not tied to the lender, the loan's funding, or the sale of annuities, investments or insurance (12 U.S.C. § 1715z-20(d)(2)(B)). The counseling must cover subjects including options other than a HECM, other home equity conversion options such as property tax deferral, the loan's financial implications, and possible effects on taxes, public benefits, the estate and heirs (§ 1715z-20(f)). HUD points to its HECM Counselor Roster and its line at (800) 569-4287 for finding a counselor.

California's counseling list and notice. Before taking a final, complete application, the lender must give the borrower a list of not fewer than 10 HUD-approved counseling agencies (Civil Code section 1923.2(j)). Lenders must also give a printed notice about counseling first (Civil Code section 1923.5).

The seven-day wait. A lender may not accept a final, complete application, or charge the applicant fees, until seven days have passed from the date of counseling, and only after receiving a signed counseling certification (Civil Code section 1923.2(k)).

Appraisal. The home's appraised value is one of the figures HUD uses in setting how much may be available.

Costs and insurance. Federal rules limit the origination fee, and the lender discloses it. The lender must also disclose all costs, including which are and are not required (§ 1715z-20(d)(2)(C)), and at least 10 days before closing explain the borrower's limited liability and obligations (§ 1715z-20(e)(2)). FHA collects mortgage insurance premiums. California reverse mortgage costs are set out in more detail.

Non-recourse. The homeowner is not liable for any gap between the loan balance and what the lender recovers from the net sale proceeds or insurance (§ 1715z-20(d)(7)).

The recorded document. In California, the first page of the deed of trust must state: "This deed of trust secures a reverse mortgage loan" (Civil Code section 1923.2(h)).

Closing and cancelling. The CFPB notes that with most reverse mortgages, a borrower may cancel within three business days after closing, for any reason.

What Grows Over Time: Costs, Obligations and the Rising Balance

A reverse mortgage asks for no monthly loan payment, so it is easy to miss that the debt is moving. It moves upward, as interest and charges join the balance. Each year, by January 31, the lender must send a statement showing what was paid out, the interest added and the balance (12 U.S.C. § 1715z-20(e)(3)).

Upfront costs. These fall into categories: the origination fee, closing costs, the appraisal and the mortgage insurance premium. California law allows costs and fees at the start, periodically, or when the loan matures (Civil Code section 1923.2(c)).

Ongoing duties. The duties listed at the top of this guide last for the life of the loan, and this is where most of the risk sits. Under HUD's rules, with HUD's approval, the loan can become due if a borrower does not provide for property charges or does not perform another obligation (24 C.F.R. § 206.27(c)(2)).

Riverside County tax dates. The Treasurer-Tax Collector's tax cycle calendar lists the first installment due November 1, delinquent after 5:00 p.m. December 10 with a 10% penalty, and the second due February 1, delinquent after 5:00 p.m. April 10 with a 10% penalty and cost; a date on a weekend or county holiday moves to the next business day. The Assessor adds that a supplemental tax bill is sent directly to the owner, not to a mortgage company. The county's delinquent tax pamphlet says any taxes unpaid at 5 p.m. June 30 become tax defaulted, and after five years the property becomes subject to the power of sale.

Time away from home. In California, absences of up to 60 consecutive days do not make the loan due (Civil Code section 1923.2(g)). Under HUD's rules, with HUD's approval, the loan can become due if a borrower is away more than 12 consecutive months because of physical or mental illness, such as a stay in a care facility, and no other borrower lives there (24 C.F.R. § 206.27(c)(2)(ii)).

When the loan comes due. Heirs repay the balance, often by selling the home or using other funds; the non-recourse rule above limits what is owed to what the home brings.

Riverside County Homeowners: Local Context and Next Steps

A reverse mortgage borrower in Riverside County deals with the same county offices as any homeowner, and their programs can matter as much as the loan.

The Homeowners' Exemption. California law sets this at $7,000 of the dwelling's value for an owner's principal residence (Revenue and Taxation Code section 218). The Riverside County Assessor-County Clerk-Recorder says it results in annual savings of approximately $70, that the home must be the principal residence on January 1, that filing by 5 p.m. February 15 gives the full exemption and filing from February 16 to 5 p.m. December 10 gives 80 percent, and that there is no fee. A May 21, 2026 county release adds that the exemption continues while the owner keeps owning and living in the home.

Property Tax Postponement. This State Controller program lets qualifying homeowners delay property taxes, secured by a lien in the State's favor. Under Revenue and Taxation Code section 20583, the home must be the claimant's principal residence, the owners must hold equity of at least 40 percent each time a claim is filed, and the claimant must receive a secured tax bill. The State Controller's Office publishes current eligibility and deadlines.

Licensing. The California Department of Real Estate licenses mortgage originators in California and publishes consumer guidance.

Counseling. HUD's counselor roster, described above, is the starting point for an independent conversation.

The county programs here exist whether or not a reverse mortgage ever enters the picture, and they are worth knowing about on their own.