Bay Area reverse mortgage specialist provides updated guidance on HECMs, proprietary reverse mortgages and single-purpose programs as homeowners evaluate ways to access home equity in retirement
-- Homa Rassouli, a Bay Area Reverse Mortgage Specialist with Mutual of Omaha Mortgage, is highlighting the three main categories of reverse mortgages that older homeowners may encounter as they evaluate their home equity and retirement options in Santa Clara County.
The educational focus comes as the Federal Housing Administration's nationwide maximum claim amount for Home Equity Conversion Mortgages, or HECMs, increased to $1,249,125 for 2026. The change provides timely context for homeowners in higher-value housing markets such as Santa Clara County who may be comparing federally insured and private reverse mortgage options.
For seniors and their families asking what are the 3 types of reverse mortgages, the broad categories are HECMs, proprietary reverse mortgages and single-purpose reverse mortgages. Each is structured differently, and factors including the homeowner's goals, property value, eligibility and intended use of the funds can affect which options are available.
HECMs are federally insured reverse mortgages
A Home Equity Conversion Mortgage is the most common type of reverse mortgage and is insured by the Federal Housing Administration. HECMs are generally designed for eligible homeowners age 62 and older and allow borrowers to access a portion of their home equity without required monthly principal and interest mortgage payments.
Borrowers remain responsible for meeting the terms of the loan, including maintaining the home as their principal residence and staying current on property taxes, homeowners insurance, maintenance costs and applicable homeowners association fees.
The FHA's 2026 HECM maximum claim amount is $1,249,125 nationwide. The maximum claim amount is an FHA program limit used in determining HECM benefits and does not mean that every borrower can receive that amount. Available proceeds depend on several factors, including the age of the youngest borrower or eligible non-borrowing spouse, interest rates, property value and existing mortgage obligations.
Proprietary reverse mortgages can address higher-value properties
Proprietary reverse mortgages are private loan products and are not insured by the FHA. These products may be relevant to some owners of higher-value homes because their lending parameters can differ from those of the federal HECM program.
That distinction can be particularly relevant for homeowners researching reverse mortgages in Santa Clara CA and neighboring Silicon Valley communities, where property values may make both federally insured and private alternatives worth understanding.
Terms, qualification requirements, costs and available proceeds vary by product and lender. Homeowners should therefore review the specific conditions of a proprietary reverse mortgage rather than assuming it operates in the same way as a HECM.
Single-purpose reverse mortgages have more restricted uses
A third category is the single-purpose reverse mortgage. These programs may be offered by state or local government agencies or nonprofit organizations and typically restrict proceeds to a specific approved purpose, such as home repairs or property taxes.
Availability can be limited by location, income requirements and the programs offered by individual agencies. As a result, a single-purpose reverse mortgage may not be available to every Santa Clara County homeowner.
Rassouli emphasizes education as an important part of evaluating any reverse mortgage because the appropriate option depends on the homeowner's individual circumstances and longer-term plans.
With more than 37 years in the financial services and mortgage industry, including the last 15 focused exclusively on reverse mortgages, Rassouli works with older homeowners and their families to help them better understand reverse mortgage structures, requirements and potential uses.
"The best part about my job is seeing how a client's Reverse Mortgage allows them security and a more enjoyable life," Rassouli said.
Before joining Mutual of Omaha Mortgage, Rassouli began her career at Wells Fargo Bank, where she earned Top Producer recognition for more than 10 years. She is also a recipient of the President's Club honor and has been involved with professional and community organizations throughout the San Francisco Bay Area.
About Homa Rassouli
Homa Rassouli is a Reverse Mortgage Specialist, NMLS #455497, with Mutual of Omaha Mortgage. With more than 37 years of experience in financial services and mortgage lending and 15 years focused exclusively on reverse mortgages, she provides education and guidance to homeowners considering ways to use their home equity as part of their retirement planning.
Rassouli holds a Bachelor of Business Administration in Management and Finance from Gannon University and has participated in financial planning, real estate and community organizations throughout the Bay Area.
Reverse mortgages are loans and are subject to eligibility requirements, costs and loan obligations. Borrowers remain responsible for property taxes, homeowners insurance, maintenance and other applicable property charges. This information is for educational purposes and does not constitute financial, tax or legal advice.
Contact Info:
Name: Homa Rassouli
Email: Send Email
Organization: Homa Rassouli
Address: 7250 Redwood Blvd, Suite 300 Novato, CA 94945
Phone: 415-223-9481
Website: https://homarassouli.com/
Release ID: 89203972
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