Is a Reverse Mortgage Right for Your Retirement Plan?

One of the most common patterns I notice with San Diego homeowners is that "right for me" decisions become clear only after we compare alternatives using the same timeline and budget assumptions.

HUD HECM hub: HUD.gov HECM. Compare staying versus moving: reverse mortgage vs selling your home.

Checklist: goals

• Do you need to eliminate monthly mortgage payments while staying put?
• Do you want standby liquidity—line of credit—rather than a big lump sum?
• Are you trying to delay portfolio sales or SS—see preserve investments?

Checklist: obligations you can keep

Taxes, insurance, maintenance, and occupancy must remain sustainable. If that is shaky, fix the budget first—read downsides.

In my experience working with homeowners in San Diego and San Marcos, families often think qualification is the finish line when it is really the starting point for long-term affordability. A San Marcos client I worked with recently said the biggest value was seeing a five-year obligation plan before signing, not after closing. After 15 years of doing this in California and Arizona, I can tell you that preparation is what prevents regret.

Checklist: alternatives you have honestly compared

• HELOC vs reverse—payment and qualification differences
• Downsizing—vs downsizing
• Doing nothing—sometimes valid

Checklist: legacy and benefits sensitivities

If heirs, Medi-Cal/Medicaid, or tax planning matter, involve professionals early—estate planning and Medicaid considerations.

HUD HECM guidance also confirms independent counseling is required before closing, which is designed to reinforce suitability and alternatives review.

Frequently asked questions

Do I need perfect credit?

Many paths exist—but financial assessment still applies.

Is counseling required?

HECM requires independent counseling—treat it as a feature.

How fast can I know if I qualify?

Start with facts: age/occupancy/equity—then an illustration.

What if I plan to move in two years?

Short horizons can change whether closing costs make sense.

Next steps

Use the free reverse mortgage calculator and take the free readiness assessment. For a structured conversation, use the contact page or about page.

This material is not from HUD or FHA and has not been approved by HUD or any government agency. All reverse mortgage loans are subject to credit and property approval.