20 Ways To Use A Reverse Mortgage In California

20 Reasons People Have Chosen a Reverse Mortgage in San Diego and California

Reverse Mortgages have emerged as a compelling option for older homeowners seeking to add security to their financial future. They offer a unique opportunity to tap into a portion of their home's equity without having to sell or move.  In recent years, reverse mortgages have gained popularity for their flexibility and the many things people can do with them.



A Reverse Mortgage can offer the ability to supplement retirement income, fund home improvements or to provide a safety net for unexpected expenses. For many older California homeowners these innovative loans have become a valuable leg of their retirement plan. While there are so many reasons people get a reverse mortgage for themselves, we explore the top 20 reasons why people choose reverse mortgages. We would love to have a conversation with you about what a reverse mortgage might offer you.


We hope you find inspiration in this list. 


How would you use a reverse mortgage?

Woman Cooking in Reverse Mortgage Kitchen in San Diego

Your Guide to 20 Reasons People Have Secured a California Reverse Mortgage


Presented by Accurate Reverse Mortgage Corp in San Diego California

Reason 1:  Eliminate the Monthly Mortgage Payment on a Traditional Mortgage *

If you still have a traditional mortgage with a monthly payment - refinancing into a reverse can get rid of the monthly payment as reverse mortgages have no monthly mortgage payment requirements.   * Borrower do still need to occupy home as their primary residence plus continue to pay the ongoing property taxes, homeowners insurance, hoa dues (if any) and home maintenance to meet loan requirements.  Do those things and you don't have to make any monthly mortgage payments!

Reason 2:  Fund Home Improvement Projects or Repairs

A reverse mortgage can provide the funds for things like a new kitchen, bathroom remodel, windows, doors, flooring, ongoing repairs and more.

Reason 3 Supplement Retirement Income

A reverse mortgage can boost cash flow to help supplement social security, pensions and retirement savings.

Reason 4:  Create a Line-of-Credit For Future Needs

Similar to a traditional HELOC (home equity line of credit) but with some exciting features only a reverse mortgage can offer such as a lifetime draw and built in growth feature (on the hecm reverse program).

Reason 5:  Cover Medical and Dental Bills

With the rising cost of healthcare these days - funds from a reverse mortgage can be a great solution to cover medical and dental bills.

Reason 6:  Consolidate Credit Card Debts Into the Reverse To Lower Expenses

Funds can be drawn from the reverse mortgage and used to payoff credit cards and consolidate them into the reverse mortgage to dramatically lower monthly expenses.

Reason 7:  Gift Children and Grandkids an Early Inheritance

Help your kids, grandkids or a family member out today while you are still alive by gifting them some of the funds from the reverse mortgage.  Help them with a down-payment to buy a home or go to college.  Instead of them waiting for you to die and inherit part of your estate you can gift it to them while you are alive and enjoy helping them today.

Reason 8:  Maintain Current Lifestyle

On a fixed income it can be often more difficult to maintain the lifestyle one had when working.  A reverse mortgage can provide additional funds for the older homeowner to maintain the lifestyle they love.

Reason 9:  Pay Property Taxes and Homeowners Insurance Bills

Funds can be drawn from the line-of-credit can be used to pay the property taxes and homeowner insurance bills. Additionally there is an option called a "LESA" - Lifetime Expectancy Set Aside where the reverse mortgage pays those expenses directly (a LESA must be established at time of loan origination and not all reverse mortgages have this feature).

Reason 10:  Create An "Emergency Fund" For Unexpected Expenses

Having additional funds in the form of a line-of-credit or a reserve bank account can leave the older homeowner on a fixed income better prepared for unexpected expenses such as medical bills or home repairs.

Reason 11:  Cover In-Home Care Expenses

Many people have secured a reverse mortgage to have additional funds to cover the cost of in-home care so they can avoid needing to go to assisted living or a nursing home.

Reason 12:  Delay Timing of Drawing Social Security To Maximize Benefits

With this strategy which should be coordinated with your financial advisor, early in retirement years, funds from the reverse mortgage are utilized instead of electing to draw social security benefits.  Delaying drawing social security generally means a higher monthly benefit later.   This should not be taken as tax or financial planning advice.  Borrower should seek the advice of a tax planner or financial advisor.

Reason 13:  Fund Building an ADU (Accessory Dwelling Unit) For Extra Rental Income or a Family Member To Live In. 

California in recent years has become very supportive of homeowners building an ADU - Accessory Dwelling Unit.   A reverse mortgage can be an excellent source of funding such project.  Having an ADU can allow for a caregiver or family member to live on site or can be an excellent form of rental income.   It's important to note the borrower must continue to occupy the home as their primary residence, but renting out a accessory dwelling unit is allowed.

Reason 14:  Advanced Estate Planning

Many savvy and affluent homeowners have incorporated a reverse mortgage into their comprehensive estate and financial plans.  We are happy to coordinate or have conversations with your estate attorney or financial advisors.   There are an increasing number of sophisticated ways to use reverse mortgages. 

Reason 15:  Fund Travel and Leisure Activities 

The extra money from a reverse mortgage has allowed many reverse mortgage borrowers to take dream vacations, cruises and pursue many hobbies and leisure activities.

Reason 16:  Create a "Standby Bear Market Account" For Stock Market Volatility  

This type of strategy should be coordinated with your financial advisor.  But the strategy is simple, when the stock market declines or enters a "bear market", instead of drawing on invested assets and selling at depressed prices, funds from a reverse mortgage line-of-credit are drawn and utilized instead.  This allows investment assets to remain invested and offers them time to recover.   This is NOT Financial Advice - Borrower should consult their financial advisor if they want to explore this strategy.

Reason 17:  Purchase a Home With a Reverse Mortgage

Downsize and buy the next home with all the benefits and safeguards of a reverse mortgage.  Discover the Reverse For Purchase available as a HECM Reverse Mortgage or a Jumbo Proprietary Reverse for higher valued homes.  Or draw some funds from the reverse on the home you live in to use for the down payment on a rental property for additional income.

Reason 18:  Access Funds Without Capital Gains Taxes **

This is another sophisticated strategy that many savvy homeowners utilize with a reverse mortgage.  Capital gains taxes are generally due when an asset is sold.  Selling stocks or other assets that have a lot of appreciation could result in capital gains taxes.  Selling your home could also incur capital gains taxes.  However funds from a reverse mortgage are not subject to capital gains taxes as you are not selling your home - it is a loan that disburses loan proceeds.  ** This is not tax advice - borrower should consult their tax advisor or financial advisor. 

Reason 19:  Retrofit Home To Increase Mobility and Safety

Funds from a reverse mortgage can be used to make remodeling upgrades to improve the safety of the home.  Examples include adding grab bars, home safety devices, chair lifts or other equipment to make aging in place successful.  

Reason 20:  Pay For Health Insurance During Early Retirement Years Until Medicare Eligible At Age 65 

Funds from a reverse mortgage can bridge the gap paying for health insurance premiums before Medicare benefits start at age 65.

What Would You Do With Your Own Reverse Mortgage?


The possibilities are endless.


Discover the Many Ways to Use a Reverse Mortgage in California.


Over my many years originating reverse mortgages,

I have personally coordinated all of the above strategies with various clients and their trusted advisors. 

I would love to have a conversation with you on the creative ways that you might use a reverse mortgage and home equity in your situation.


(888) 603-1550   |   (619) 294-9820


John Correll, CRMP

Certified Reverse Mortgage Professional


California Reverse Mortgage Company in San Diego

CRMP Certificate Certified Reverse Mortgage Professional John Correll 2023 - 2024

CRMP John Correll in San Diego California

25 Years Lending Expereince

John Correll began his mortgage lending career in 1995 and has over 25 years experience which he can put to work for you and your family when considering a reverse mortgage.

True Specialists In Reverse Mortgages

John Correll and his team are 100% focused on reverse mortgages.  Reverse Mortgages are the only type of products we originate.  If you are looking for a "true specialist" look no further.

People First. Business Second.

This motto resonates with everything I do with my business and for each and every one of my clients.  What drives me in the reverse mortgage industry is the difference I know I've made in the people's lives who have taken out a reverse mortgage with me.

Ready to Learn More?

Request Your Personalized Reverse Mortgage Proposal Today!

John Correll, CRMP
Certified Reverse Mortgage Professional
NMLS #1004396, 2484031

CA Bur of Real Estate - Real Estate Broker #10353015, 02214678

Accurate Reverse Mortgage Corp.

(619) 294-9820
Toll Free (888) 603-1550
4025 Camino Del Rio South
Suite 321
San Diego, CA 92108

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These materials are not from HUD or FHA and not approved by HUD or a government agency. Borrower is responsible for property taxes, homeowner’s insurance and property maintenance plus must continue to occupy home as their primary residence for loan to remain in good standing. Equal Housing Opportunity. Rates, Program, Fees, and Guidelines are subject to change without notice. Restrictions apply. Not a commitment to lend. Not all will qualify. Licensed to conduct business only in California. Accurate Reverse Mortgage Corp. 4025 Camino Del Rio South, Suite 321 San Diego, CA 92108. Licensed CA Bur of Real Estate – Real Estate Broker: Broker #02214678, 01353015. NMLS #2484031, 1004396