FHA HECM Reverse Mortgage in California

A Home Equity Conversion Mortgage, or HECM, is the reverse mortgage insured by the Federal Housing Administration (FHA). It is the most common type of reverse mortgage. It is only for homeowners age 62 and older.

How we work. Oakstone Capital Mortgage is a mortgage broker. We are not an FHA-approved lender, and we do not make or fund HECMs. An FHA-approved lender that we work with makes and funds your loan and decides if you qualify. We help you apply and we compare wholesale lenders for you and show you every fee up front.

Do I qualify?

• You are 62 or older.
• You own the home and live in it as your main home.
• The home meets FHA standards. Eligible homes include single-family homes, 2 to 4 unit homes where you live in one unit, FHA-approved condos, and manufactured homes that meet FHA rules.
• You meet with a HUD-approved HECM counselor.
• You pass a financial check. The lender looks at your credit, your history paying property taxes and insurance, and your income and expenses. The goal is to confirm you can keep paying them.
• Any current mortgage or other liens must be paid off at closing. A HECM has to be the first loan on the home. You can use the HECM money to pay off your old mortgage.

How much can I get?

The amount depends on three things: the age of the youngest borrower (or an eligible spouse who is not on the loan), the interest rate, and the lesser of your home's value or the FHA limit. In 2026 the FHA limit is $1,249,125. (Source: HUD Mortgagee Letter 2025-22, checked October 2026.) This does not mean you can borrow that much. It is the highest home value FHA will count. In the first 12 months, FHA also limits how much you can take.

How you can get the money

Depending on the loan, you may choose a one-time lump sum, a line of credit, monthly payments, or a mix. A fixed-rate HECM is a one-time lump sum. An adjustable-rate HECM gives you more choices and lets you take money later.

What it costs

• FHA mortgage insurance. Upfront: 2.00% of the claim amount (the lesser of your home value or the FHA limit). Yearly: 0.50% of the loan balance, added to your balance. (Source: HUD Mortgagee Letter 2017-12, checked October 2026.)
• Lender origination fee. FHA caps this fee. A lender may charge less. The cap is the greater of $2,500 or 2% of the first $200,000 of your claim amount plus 1% of the rest, up to $6,000.
• Other costs. Appraisal, title, recording, credit report, and a counseling fee. Most can be paid out of the loan.
• Interest. Interest is added to your balance each month.

We show you every fee up front, in writing, before you decide.

What you must keep doing

Pay your property taxes and homeowner's insurance, keep the home in good repair, and live in the home as your main home. If you do not, the loan can come due.

If you are married

Tell us about your spouse at the start, even if your spouse will not be on the loan. A spouse who is named in the loan papers, was your spouse when the loan closed, and lives in the home may be able to stay in the home after you pass away if they meet HUD's rules. A spouse who is not named may have to leave or repay the loan. Spouses must also take part in counseling.

What happens to my family

When the last borrower passes away, sells, or moves out for good, the loan comes due. Heirs can sell the home or keep it. To keep it, they pay the loan balance or 95% of the appraised value, whichever is less. If the home is worth less than the loan, FHA insurance covers the gap and heirs do not owe more than the home is worth.

Steps

• Talk with us. No application yet.
• Meet with a HUD-approved counselor (we give you a list of at least 10 agencies).
• Wait 7 days after counseling in California.
• Apply, get a written cost table, and a financial check.
• Appraisal, closing, and a 3-business-day right to cancel.

Next step

Call 949-800-8519 or contact us to see if a HECM fits. We explain every step and you decide.

Frequently asked questions

• Is a HECM the same as a reverse mortgage? A HECM is the FHA-insured kind of reverse mortgage. There are also private (proprietary) reverse mortgages that are not FHA-insured. See Jumbo Reverse Mortgage.
• Do I make monthly payments? There is no required monthly mortgage payment. You still must pay property taxes and homeowner's insurance and keep the home in good repair.
• What if my home is worth less than my loan later? A HECM is non-recourse. You or your heirs will not owe more than the home is worth when it is sold, and FHA insurance covers the gap.
• What does counseling involve and cost? An independent HUD-approved counselor explains the loan and your other options. The agency may charge a fee, must tell you before you start, and should not turn you away if you cannot pay.
• Can my spouse stay if they are not on the loan? Maybe. A spouse who is named in the loan papers, was your spouse at closing, and lives in the home may be able to stay if HUD's rules are met. Tell us about your spouse at the start.

License and disclosures

Loans made or arranged pursuant to a California Financing Law license.

Oakstone Capital Mortgage, Irvine, California.

Oakstone Capital Mortgage NMLS #2585868

California Financing Law license number: #60DBO-194582

Steven Arroyo NMLS #1576672

Check any license at nmlsconsumeraccess.org.

Oakstone Capital Mortgage is a mortgage broker and is not an FHA-approved lender.

This website is not from or approved by HUD, FHA, or any government agency. Oakstone is not affiliated with the U.S. government.

Reverse mortgage borrowers must pay property taxes and homeowner's insurance, keep the home in good repair, and live in the home as their main home. Interest and fees are added to the loan balance. You are not required to complete a reverse mortgage just because you have received disclosures.

Equal Housing Opportunity