Thinking About a Reverse Mortgage for Your Aging Parent? Read This First

Aug 21

5 Eye-Opening Truths About Reverse Mortgages Every Caregiver Should Know

If you're caring for an aging parent or spouse in Silicon Valley, you've likely faced the growing challenge of how to fund safe, in-home support, especially as costs continue to rise in Santa Clara and San Mateo Counties. You may have heard of reverse mortgages, but chances are, you’re unclear on how they work, or whether they’re even safe.

That’s exactly why we brought reverse mortgage specialist Dan Biller of New American Funding onto Synergy Sessions: Aging Smarter in Silicon Valley. In this conversation, Dan shared the facts behind this often-misunderstood financial tool and why it’s worth considering for families who want to help their loved ones age in place with dignity and independence.

Watch or listen to the full episode:

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1. A Reverse Mortgage Can Turn Home Equity Into Tax-Free Cash

A reverse mortgage is a type of loan that allows homeowners aged 62+ to convert a portion of their home equity into usable cash. The homeowner still owns the home, but instead of making monthly payments to the bank, the bank pays them— either through a lump sum, a line of credit, or monthly distributions.

Unlike traditional mortgages or HELOCs, reverse mortgages require:

No monthly principal or interest payments
That the homeowner lives in the home as their primary residence
That they keep up with property taxes, insurance, and maintenance

As Dan explains, “You’re in the driver’s seat. You can pay down the balance if you want, but you’re never required to.”

This flexibility is especially valuable for older adults living on a fixed income, who may be feeling squeezed by rising care costs, medical bills, or the desire to modify their home for safety.

2. It's Federally Regulated and Designed to Protect the Borrower

The most common type of reverse mortgage is the HECM (Home Equity Conversion Mortgage), which is insured by the FHA and regulated by HUD. This program was specifically created to help seniors access their home’s equity while aging in place safely.

Here’s how it protects the homeowner and their family:

It’s a non-recourse loan, meaning neither the homeowner nor their heirs will ever owe more than the value of the home
It’s backed by federal insurance, which guarantees the lender won’t seize other assets to repay the loan
Borrowers can remain in their home for life, even if the loan balance grows

“A reverse mortgage is just a lien on the home, like any other mortgage,” Dan explains. “The bank never takes the home. The owner stays in control.”

3. It Can Fund In-Home Care, Home Modifications, and More

One of the most powerful uses of a reverse mortgage is freeing up funds to cover aging-related expenses without touching retirement savings or selling the home.

For caregivers in Santa Clara County and San Mateo County, this can be a lifeline. Common uses include:

Hiring a professional in-home caregiver or respite care service
Renovating bathrooms or widening doorways for accessibility
Paying down debt to reduce monthly expenses
Providing pre-inheritance gifts to help adult children buy homes

“Some of my clients use it to create generational wealth,” Dan shares. “They can help their kids now, not just in the future.”

In Silicon Valley, where home values are high but monthly cash flow can be tight, this option allows seniors to stay at home safely and with dignity.

4. You Don’t Have to Use It Right Away, And the Credit Line Grows Over Time

Reverse mortgages are not just for those in crisis. In fact, setting one up early can give families more flexibility and better long-term value.

Dan encourages people to explore the option before they need the funds. Why? Because with a HECM reverse mortgage, the unused line of credit grows annually, regardless of home values.

“If the interest rate is 6.5%, your available line grows by 6.5% each year,” he explains. “No other financial tool works quite like that.”

This feature makes it a smart option for those who want a financial safety net in place before a caregiving crisis or medical emergency hits.

5. The Heirs Can Still Inherit the Home or Sell It With Support

One of the biggest myths is that heirs will “lose” the home. The reality? After the homeowner passes, the family has options:

Sell the home and keep any remaining equity
Refinance and keep the home in the family
Let the lender sell the home and walk away with no liability

The key is planning ahead. Dan recommends placing the home in a trust and working with a trusted reverse mortgage advisor. If needed, heirs can receive two 90-day extensions (up to 12 months total) to settle the estate or arrange a sale.

Dan also stresses the importance of working with a specialist— not a broker. As a direct lender with New American Funding, he stays involved with the family throughout the life of the loan.

“I help my clients, and their families, long after the paperwork is signed,” Dan says. “This isn’t a transaction. It’s a relationship.”

When Is the Right Time to Explore a Reverse Mortgage?

The short answer: sooner than you think.

If you're caring for a senior loved one in Silicon Valley and starting to wonder how to afford care or make the home safer, now is a good time to learn. Even if it’s not the right fit today, having a relationship with a trusted advisor like Dan Biller can prepare you for the road ahead.

And if you’re already juggling work, family, and caregiving responsibilities, you deserve all the tools and support you can get.

Want to Learn More About Reverse Mortgages? Contact Dan Biller

Dan Biller is a licensed reverse mortgage specialist with New American Funding and a trusted resource for families navigating aging and long-term care decisions.

He serves clients throughout California, Hawaii, Arizona, Idaho, Colorado, Connecticut, and Washington, and can refer you to someone local if you're out of state.

Dan Biller Contact Information
Phone: 408-759-2512
Email: dan.biller@nafimc.com
Instagram: @danbillernafreverse
Website: https://www.newamericanfunding.com/loan-types/reverse-mortgage/

Watch or listen to the full episode:

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How SYNERGY HomeCare of Silicon Valley Supports Aging in Place

At SYNERGY HomeCare of Silicon Valley, we know that aging in place isn’t just about staying at home—it’s about staying safe, supported, and independent. Whether you’re looking for a few hours of companion care per week or more intensive support for personal care or memory care, we’re here to help.

We serve families across Santa Clara and San Mateo Counties with flexible, non-medical home care solutions that meet your loved one’s unique needs—and give you the peace of mind you deserve.

Start with a conversation.
Call us at (408) 429-8769 or visit
https://www.synergyhomecareofsiliconvalley.com/