When discussing retirement planning, the same question always arises: I have a house but not enough cash. What should I do? This is also the case in Chino.

One option is a reverse mortgage. Specifically, it's the HECM (Home Equity Conversion Mortgage), a product guaranteed by the Federal Housing Administration (FHA). You must be at least 62 years old and the home must be your primary residence. It works the opposite of a traditional mortgage. Instead of making monthly payments, you receive funds from the lender. You can choose from a lump sum, monthly payments, or a line of credit. Repayment occurs when the home is sold, the owner passes away, or the home is no longer used as the primary residence.

Let's briefly summarize the eligibility requirements. You must be at least 62 years old. The home must be your primary residence. If there is an existing mortgage balance, it must be paid off first from the reverse mortgage funds. You only receive the remaining amount. You also need to pass a financial assessment, which checks if you can continue to pay property taxes and insurance. If you choose the line of credit option, the unused portion of the credit limit increases over time. If you don't need a large sum of money immediately, this option is worth considering.

You should also compare it with other methods. A Home Equity Line of Credit (HELOC) has lower initial costs, but you must make monthly principal and interest payments. Downsizing can create a large sum of money at once, but you have to leave your familiar neighborhood and neighbors. Some may consider moving in with children or renting out the property. There is no single correct answer. It's a decision that depends on health status, future plans for living in the home, and the amount of assets you want to leave to your children.

Let's look at home prices in Chino. According to Zillow, the average home value in June 2026 is $772,256. Redfin reports that the recent median sale price was around $770,000. If the mortgage is fully paid off, there is potential to leverage this equity.

You also need to consider property taxes. The average effective property tax rate in San Bernardino County is about 0.70%. For a median-priced home of $475,000, that's approximately $3,346 annually. Even with a reverse mortgage, you still need to pay this tax. The same goes for insurance. The lender will verify your ability to cover these costs through the financial assessment.

In California, 16.5% of the population is over 65. Areas like Chino, with many older single-family homes, see consistent demand for retirement asset utilization consultations.

The advantages are clear. There's no monthly repayment burden. The non-recourse structure means that if the home value falls below the loan balance, heirs are not required to pay the difference due to FHA guarantees. However, there are important points to confirm:

• Initial costs such as origination fees and mortgage insurance premiums (MIP) are higher than traditional mortgages.
• Over time, the remaining equity may decrease, reducing the inheritance assets.
• If you cannot continue to pay property taxes and insurance, there is a risk of default.

Retirement planning does not end with this product. You should compare it with other options like downsizing, HELOCs, and renting. A mandatory counseling session with a HUD-approved counseling agency is required before applying for HECM. There are actual scams targeting the elderly. It's advisable to discuss with family and take your time in making a decision.

During the consultation, you will also determine the funding method. Monthly payments are suitable for regular living expenses. A lump sum is appropriate for one-time costs like repairs. A line of credit can be used as needed. Regardless of the option, principal and interest continue to accrue. Receiving only what you need is a way to protect your equity.

The process from application to fund disbursement typically takes a few weeks. It involves appraisal, document review, and verification of counseling certificates. There's no rush to hurry through this process.

It's best not to make decisions alone. Discussing with children or a spouse in advance can reduce misunderstandings later, especially if there are inheritance plans. It's not too late to compare terms from multiple lenders and make a thoughtful decision. It's advisable to ask all your questions during the consultation.

This article is not investment or legal advice. Before entering into any contracts, it's recommended to consult with a HUD-approved counselor and financial or legal professionals.