Important Considerations For Reverse Mortgages For Older Adults in Los Angeles

Couple doing yoga

Reverse mortgages are growing more popular. The Federal Housing Administration (FHA) report to Congress for 2022 showed that there were over 64,000 reverse mortgages issued in 2022. This represents a significant increase from the 49,000 HECM loans issued in 2021.

Many people are choosing reverse mortgages so they can use the equity they’ve built in their homes. California has topped the list of states with FHA-approved HECM mortgages every year since 2016. Clearly, if you’re thinking about a reverse mortgage in Los Angeles County, you are not alone.

However, you do have some important considerations when you are thinking about taking out a reverse mortgage. Using the equity in your home to pay for living expenses or other purposes can be a good financial decision, but it also comes with risks.

Guidance From The California Department of Real Estate (DRE)

The California Department of Real Estate (DRE) has put together a guide for older adults who are thinking about a reverse mortgage. You can find a link to the guide in our sources and resource section.

In addition to working with a HUD-approved reverse mortgage counselor (a requirement to receive an HECM loan), the DRE advises older adults to consult with trusted family members before getting a reverse mortgage. 

Although funds from a reverse mortgage will not affect Social Security or Medicare, it’s possible they could affect other benefits which are based on need. Government benefits that are based on need are sometimes called “means-tested” benefits. 

Medicaid and SSI (Supplemental Security Income) are two forms of means-tested benefits that might be impacted by a lump-sum payment from a reverse mortgage. If you or someone in your home receives these benefits, a HUD-approved HECM counselor can discuss this important consideration with you.

Asking The Right Questions About Reverse Mortgages

You can also ask important questions of yourself and your mortgage broker throughout the process. These questions include:

  • How much money do you need?
  • Can you meet your financial obligations using this financial tool?
  • Do you have enough equity in your home to qualify for a reverse mortgage?

All of these are important questions to ask and get answered throughout the reverse mortgage process. That is why working with a reliable and trustworthy loan broker is so important. Contact California Platinum Loans today to learn more.


California Department of Real Estate. “Reverse Mortgages: Is One Right For You?”

Clow, Chris. “These were the biggest reverse mortgage trends in 2022,” Reverse Mortgage Daily, 16 November 2022,

National Council on Aging, “A Guide to Reverse Mortgages for Older Adults,” 6 March 2022,

Master the Art of Mortgage Pre-Qualification & Pre-Approval in Los Angeles: A Beginner’s Guide

working ith a lender

As a Los Angeles mortgage and real estate broker, the pre-approval and pre-qualification processes might seem intimidating for first-time homebuyers. We’re here to simplify it and help you navigate your journey towards homeownership.

Working with a Lender for Pre-Qualification and Pre-Approval Obtaining pre-qualification or pre-approval typically involves partnering with a lender. Here are some tips to help you:

  1. Shop around: Explore different lenders to find the best terms and interest rates tailored to your needs.
  2. Be prepared: Have all necessary documentation, such as tax returns, pay stubs, and bank statements, readily available to speed up the process.
  3. Ask questions: Don’t hesitate to ask your lender about any aspect of the pre-approval or pre-qualification process, including required documentation and processing time.

Collaborating with a Mortgage Broker Another approach to secure pre-approval or pre-qualification is working with a mortgage broker. Find someone to assist you in understanding the terms and interest rates of various lenders. Here are some pointers for working with a mortgage broker:

  1. Do your research: Ensure your chosen mortgage broker is licensed and reputable.
  2. Provide all the necessary information: Share all required documentation with the mortgage broker to facilitate a smooth process.
  3. Ask questions: Feel free to inquire about any aspect of the pre-approval or pre-qualification process.

Additional Tips for Mortgage Pre-Qualification and Pre-Approval Consider these extra tips when seeking pre-approval or pre-qualification for a mortgage:

  1. Know your credit score: Your credit score significantly impacts your mortgage eligibility. Check it before applying and improve it if needed.
  2. Consider your budget: Evaluate your budget and assess the monthly payments you can afford, helping you find a suitable mortgage.
  3. Be honest: Always provide accurate information to your lender or mortgage broker. Misrepresentation may lead to application denial or mortgage rescission.

Embarking on the pre-approval or pre-qualification process is crucial in purchasing a home. By collaborating with a lender or mortgage broker like us, understanding your credit score, and considering your budget, you’ll secure the best terms and interest rates for your situation.

Are you ready to begin your journey toward homeownership in Los Angeles? Contact us today for professional assistance and guidance throughout the mortgage pre-qualification and pre-approval processes. Let us help you acquire your dream home in the City of Angels!

Interested in jumbo mortgages in Los Angeles? Check out our latest article answering six common questions about these big-ticket loans!

With median home prices at over $900,000 in Los Angeles County, jumbo mortgages can be required for many buyers to finance a home purchase.

What are jumbo mortgages?

A jumbo mortgage is any mortgage which is greater than the annual loan limits published by the Federal Housing Finance Agency (FHFA) each year. Jumbo mortgages are not underwritten by Fannie Mae or Freddie Mac, the two federally-chartered home loan organizations that insure or back “conforming” or conventional mortgages that are less than the FHFA’s annual loan limits.

How much can you borrow on a jumbo mortgage?

Jumbo mortgages start at $1,089,300 in Los Angeles County for a single family home. You can borrow $2 million, $3 million, or more for a jumbo mortgage, depending upon your qualifications and income.

What are jumbo loan requirements?

You may find some online resources which say you need a minimum credit score of 700 for a jumbo mortgage. Jumbo loan requirements can be different from conventional mortgages, usually because the loans aren’t government-backed, which increases lender risk.

Jumbo loans also require favorable debt-to-income ratios, usually no higher than 43%.

Do you need perfect credit for a jumbo mortgage?

You do not need “perfect” credit to qualify for a jumbo mortgage, but the better credit you have, the greater your choices of mortgage term and lender will be. Some lenders do require a minimum credit score of 700, but others are more flexible.

What are down payment requirements for Los Angeles jumbo loans?

You will need to have sufficient equity to qualify for a jumbo mortgage. In the past, many jumbo mortgages required a 30% down payment. This is no longer the case and you may find lenders with more flexible down payment terms ranging from 15% to 30%.

How do you qualify for a jumbo mortgage in Los Angeles?

The optimal way to qualify for a jumbo mortgage in Los Angeles County is to work with a qualified and experienced mortgage broker. They can guide you through the process of obtaining a jumbo mortgage to buy the property that you want and need. Work with California Platinum Loans to discover the many financing options that are available to you.


St. Louis Federal Reserve [FRED], “Housing Inventory: Median Listing Price in Los Angeles County, CA”

Fannie Mae. “Originating & Underwriting: Loan Limits”