The housing market in Anaheim is currently around $954,662. This is the average home value reported by Zillow as of June 30, 2026. While this number may bring some joy, inquiries often arise about whether a reverse mortgage can be obtained if only one spouse is listed on the title.

To summarize, the eligibility for joint applicants under the HECM (Home Equity Conversion Mortgage) varies based on each spouse's age and title registration status. There are provisions to protect a non-borrowing spouse under certain conditions, even if the spouse is under 62 or not listed on the title, but the specific requirements can differ, so it is essential to confirm with the lending institution and HUD-approved counseling agencies.

Looking back at reverse mortgages, they are structured so that homeowners aged 62 and older can receive funds from a lender using the equity in their primary residence as collateral. The HECM, which is guaranteed by the Federal Housing Administration (FHA), is the only type of reverse mortgage backed by the government. Unlike traditional mortgages that require monthly payments, borrowers can choose to receive funds as a lump sum, monthly payments, or a line of credit, with the principal and interest settled when the home is sold, the owner passes away, or the home is no longer used as the primary residence.

The three eligibility requirements can be summarized as follows: a minimum age of 62, the property must be the primary residence, and if there is an existing mortgage balance, it must be paid off using the reverse mortgage funds. It is also necessary to consider alternatives. A Home Equity Line of Credit (HELOC) has lower initial costs but comes with monthly repayment obligations, while downsizing can provide a lump sum but requires leaving long-time neighbors and school districts. The right choice depends on how many years you plan to stay in the home and the amount of assets you wish to leave to your children.

From a cost perspective, it is important to first look at the numbers. The average effective property tax rate in Orange County is about 0.66%, which translates to approximately $6,330 annually for a median-priced home of $962,600. Even with a reverse mortgage, the property taxes and insurance remain the owner's responsibility, and the lender will assess the borrower's financial ability to manage these costs during the application process.

In California, the percentage of the population aged 65 and older is 16.5%, which is lower than the national average of 18%, but inquiries about asset utilization after retirement from long-time Korean families in Orange County remain steady.

The benefits are clear. You can secure cash flow for living expenses or medical costs without monthly repayment burdens, and the non-recourse loan structure means that if the home value falls below the loan balance, heirs are not required to pay the difference due to FHA insurance. However, three considerations must be calculated together:

• Initial costs such as origination fees and mortgage insurance premiums (MIP) are higher than those of traditional mortgages.
• Over time, the equity in the home may decrease, reducing the assets passed on to children.
• If property taxes and insurance premiums are not continuously paid, there is a risk of default.

HECMs require mandatory counseling with a HUD-approved counseling agency before applying. In cases where individual circumstances, such as spouse title issues, are involved, it is crucial to carefully review the conditions that apply to your situation during this counseling process. There are actual cases of fraud related to reverse mortgages targeting the elderly, so it is advisable to make decisions after thorough discussions with family.

During the counseling process, not only the spouse title issue but also the method of receiving funds will be organized. If you need consistent monthly living expenses, the monthly payment option may be more suitable, while a lump sum may be better for one-time expenses like home repairs. The line of credit option offers flexibility as funds can be drawn as needed.

This article is not investment or legal advice, and it is recommended to consult with a HUD-approved counselor and real estate or legal professionals before entering into any contracts.