Reverse Mortgages & Turning Home Equity Into Cash: An Interview With Candy Johnson

Lately I’ve been having more clients ask me if I know of a loan officer who can do reverse mortgages to purchase a new home and I send them over to Candy Johnson of American Pacific Mortgage. I interviewed Candy about reverse mortgages and how they can benefit homeowners who have gained equity and want to tap into it.

What is a reverse mortgage?
The reverse mortgage, or HECM (Home Equity Conversion Mortgage), can be an excellent option for homeowners age 62 and older — especially those on a fixed income. It can be used to purchase a new home, refinance an existing one, or establish a line of credit. Whether downsizing or upsizing, the HECM offers flexibility to meet different needs.

Are you seeing an uptick in people getting reverse mortgages to buy a new home?
We’ve seen a steady increase in reverse mortgage endorsements since April 2025, with momentum continuing through July. While activity slowed slightly in August, that trend is common in the housing market during late summer.

Another advantage: HECM loan limits have increased, making it easier for buyers to purchase in higher-value markets, like California.

How does a reverse mortgage work?
A Reverse Mortgage allows homeowners 62+ to access some of the equity in their home without giving up ownership. Instead of making monthly mortgage payments, you can receive funds in cash or as a line of credit while continuing to live in your home. And if preserving equity for your heirs is important, you can choose to make voluntary monthly payments at any time.

What if I have a client who owns a home worth $1M, they owe $100K, and they want to buy a new home worth $800K?
Since they don’t have the down payment, they would need to sell their current home with a consecutive close and use proceeds for the down payment.

Once they are they prequalified for the reverse, they will know how much they qualify for their loan amount which is based on their age. The balance of the funds would come from the sale of their current home.

And with the reverse mortgage, they will not have a monthly payment.

So they get pre-approved for a reverse, buy contingent on the sale of their home, then have a reverse on the new home?
Yes, and like I said getting pre-approved for the reverse is really easy. Once they know how much they get approved for then they just have to subsidize the balance for the down payment.

Got it. So then they don’t have a payment on the new home?
Correct. Just taxes and insurance, of course which they have to keep current but that’s every homeowner and home. And of course, if there’s an HOA or Mello Roos

This is great information! Thank you, Candy. Where can they contact you if they’re interested in a reverse mortgage for a purchase, refinance, or line of credit?
I can be reached at (661) 433-6876 or Candy.Johnson@apmortgage.com