Standard Lenders

Frequently Asked Questions

Reverse Mortgage FAQ

Are you considering a reverse mortgage, but don’t know where to start? Our reverse mortgage FAQ is a great guide to learn about the basics before taking the next steps.
A reverse mortgage allows those who are 62+ to borrow against the equity of their home for tax-free income as cash flow, using a flexible payment program, with no required loan payments. Homes and owners must meet certain requirements, including that the home is a primary residence and owners continue to pay their future property taxes and homeowner’s insurance.
California reverse mortgages are standard and, like other states, require financial assessment and counseling approved by the Department of Housing and Urban Development.

Yes. Reverse mortgages are insured: since 1989, the Home Equity Conversion Mortgage (HECM) has been insured by the federal government through the Federal Housing Administration (FHA), a division of the Department of Housing and Urban Development (HUD). Also, reverse mortgages require counseling sessions and financial assessments before approval for additional measures of safety.

No. Reverse mortgages are not the best choice in every circumstance, but if you feel that you require more financial flexibility or that your life can be made more comfortable with a lump sum of cash or line of credit, a reverse mortgage is an excellent way to leverage your home’s equity while ensuring that you can live comfortably.

A C2 reverse mortgage is a plan from C2, a mortgage brokerage in San Diego. However, there are other options for reverse mortgages.

Reverse mortgage counseling follows HUD guidelines, with trained counselors providing eligibility requirements, financial implications, and payment provisions.

Yes, like any mortgage, you can refinance reverse mortgages. HECM requirements must be met. Learn about our reverse mortgage refinance services.

Potentially. Since reverse mortgage amounts can be counted as income, it may affect eligibility for the “needs-based” requirement of Medicaid.

The money you receive from reverse mortgages is typically tax-free, but, as the California DRE recommends, you should consult with an independent tax professional to determine individual tax consequences of a reverse mortgage. Options vary depending on individual circumstances.

Yes. You own your property, so you can sell it, pay back the loan, and take the remaining cash to finance your new home.

Yes, you can use the money received through a reverse mortgage to purchase a homeThe HUD allows this only if you can use the cash on hand to pay the difference between the reverse mortgage proceeds and the sales price plus closing costs for the purchased property.

Yes. Since reverse mortgages can provide lump sums, the cash flow afterward can allow a variety of situations, including a short sale. Homes with a reverse mortgage can be sold, with similar requirements to using the money to purchase another home, as explained above.

Reverse mortgage amounts vary. The amount that can be received is based on the youngest borrower’s age, the property’s current interest rate, its current liens, and the FHA lending limits.

Yes. Proceeds can be obtained as either a cash lump sum or through a line of credit depending on the borrower’s preferences.

Yes. Depending on circumstances, reverse mortgages can be bought back after they are purchased.

Yes. While it isn’t necessary to make monthly payments in a reverse mortgage, you have the option to pay any amount at any time.

Yes. Many reverse mortgages work for seniors who have their houses paid off and are looking for increased cash flow.

Our reverse mortgage FAQ is just a starting point and does not constitute financial advice. Please reach out to us for information tailored to you.

Why Become a Standard Lenders Partner ?

We can provide realtors, financial advisors, and mortgage brokers with the resources needed for clients entering retirement.


  • Become the go-to agent for your clients
  • Gain insights into financing options
  • Clients can use reverse mortgages to get cash-lump-sums and buy investment property

Financial Advisors

  • Retain and expand your client base
  • Provide your clients with a zero-risk way of getting additional funds
  • Clients will improve cash flow without touching their portfolio

Traditional Mortgage Brokers and Agents

  • Become the go-to agent for your clients
  • Gain insights into financing options
  • Clients can use reverse mortgages to get cash-lump-sums and buy investment property

The Process

We walk clients through each step of the reverse mortgage process, ensuring they understand the advantages, potential drawbacks, requirements, responsibilities, and all of their options.

Clients will talk with an expert over the phone to explore their options.

Clients get a free proposal with no commitments.
A licensed professional will meet with the client in their home.

Traditional Reverse Mortgage

Jumbo Reverse Mortgage

Join Our Partner Network

Our dedicated team at Standard Lenders is here to support mortgage brokers, financial advisors, realtors, and clients. We aim to provide you with the transparency, education, and professionalism you share with your customers. Contact us today to learn more about joining our partner network.