By Steven Hyde, Founder, Hyde Funding · NMLS #391380. Reviewed November 11, 2026. Hyde Funding is a mortgage lender headquartered in San Diego, lending nationwide since 2015.
Short answer: A reverse mortgage has no required monthly mortgage payment, but you must keep paying property taxes, homeowners insurance (plus flood insurance if required) and any HOA dues, and you must maintain the home. If you fall behind, the loan can become due. Lenders review your payment history up front and may require a set-aside (LESA) that pays these charges out of your loan.
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Federal HECM rules require you to insure the home against the hazards the lender requires, including flood where it applies (24 CFR Part 206). The loan also requires you to pay property charges on time, live in the home as your primary residence and keep it in reasonable repair. The CFPB points to these obligations as the main source of trouble for borrowers.
Before approval, the lender reviews your income, your credit and how you’ve paid property taxes, insurance and HOA dues. If there are concerns, the lender may require a Life Expectancy Set-Aside (LESA), which holds back part of your proceeds to pay future taxes and insurance for you. A LESA reduces the cash you can take, but it greatly lowers the risk of falling behind.
In San Diego County, property taxes go to the Treasurer-Tax Collector, generally in two installments a year. You may get a supplemental bill after a purchase. Many newer communities add Mello-Roos special taxes to the bill. Insurance has become harder to find and more expensive in some wildfire-prone areas. If your carrier won’t renew, act fast, because the lender can force-place coverage, which is usually expensive.
The servicer usually pays the overdue charge, adds it to your loan balance and contacts you. A repayment plan may be possible, and HUD-approved housing counselors can help. If the problem isn’t resolved, the loan can be called due, which can ultimately lead to foreclosure. If you see trouble coming, call your servicer and a counselor right away.
California has programs that may help some older homeowners, including the State Controller’s Property Tax Postponement program and Proposition 19 base-year transfers when you move (BOE: Proposition 19). Eligibility rules apply, so check with each agency directly.
If the FHA appraisal flags required repairs, they’re often handled through a repair set-aside after closing. After that, keep the roof, systems and safety features in good shape. A reverse mortgage line of credit can pay for repairs and aging-in-place updates like grab bars, ramps or a walk-in shower.
Whatever your question, these basics apply. A Home Equity Conversion Mortgage (HECM) is the FHA-insured reverse mortgage most homeowners use. The youngest borrower must be at least 62, the home must be your primary residence, and you need enough equity. Any existing mortgage is paid off at closing. Counseling with an independent HUD-approved counselor is required before you apply (HUD counselor search). The lender then reviews your income, credit and history of paying property charges.
No monthly mortgage payment is required. Interest and mortgage insurance are added to the loan balance, so it grows over time and your equity shrinks. You keep title, and you must keep paying property taxes, homeowners insurance and HOA dues and maintain the home. The loan is repaid when the last borrower, or an eligible non-borrowing spouse, sells, moves out permanently or passes away. A HECM is non-recourse: neither you nor your heirs will ever owe more than the home is worth when it is sold (CFPB). For higher-value homes, a proprietary jumbo reverse mortgage may be an option, but it isn’t FHA-insured and its terms differ. See how reverse mortgages work for a full walkthrough.
Bring this list to your HUD counseling session and to your call with Steven at (858) 775-1005.
Hyde Funding is a San Diego mortgage lender founded in 2015, with an office at 8996 Miramar Rd. Suite 250. Steven Hyde (NMLS #391380) will walk you through a budget that keeps taxes and insurance covered in plain English and compare HECM and proprietary reverse options. Your family or advisor is welcome on the call. Every HECM borrower first completes independent HUD-approved counseling (find a counselor on HUD.gov). Start with a free reverse mortgage consultation, read the reverse mortgage hub, or see reverse mortgages in San Diego.
Yes. Property taxes, homeowners insurance and HOA dues remain your responsibility.
A Life Expectancy Set-Aside holds back part of your reverse mortgage funds to pay future property taxes and insurance for you.
Get replacement coverage right away. Otherwise the servicer may buy costly force-placed coverage and add it to your balance.
Yes. Unpaid property charges can make the loan due. Contact your servicer and a HUD-approved counselor early.
Talk to Steven: (858) 775-1005 · Free consultation · Apply now
Steven Hyde, NMLS #391380 (NMLS Consumer Access). Equal Housing Opportunity. Reverse mortgage borrowers must live in the home as their primary residence, keep paying property taxes, homeowners insurance and HOA dues, and maintain the home, or the loan may become due. The loan balance grows over time. HECMs are insured by FHA. Hyde Funding is not affiliated with HUD, FHA or any government agency. This is general information, not a commitment to lend. Consult a financial or tax advisor.