Reverse mortgages are common in California, where many older homeowners have a lot of equity. California adds consumer protections on top of the federal rules.
What is different in California
- The FHA reverse mortgage (HECM) limit is $1,249,125 in 2026; high-value California homes may suit a proprietary jumbo reverse mortgage instead.
- California requires a waiting period after the independent counseling session before the lender takes your final application, on top of the federal counseling requirement.
- The state’s Property Tax Postponement program lets eligible homeowners 62 and older, under an income limit, postpone property taxes on their home.
- Prop 13 keeps your property tax base low if you’ve owned for years, which helps the reverse mortgage’s financial assessment.
Questions
Are reverse mortgages a good idea in California?
For homeowners 62 and older with large equity who want to stay put and stop making a mortgage payment, often. The costs are higher than a HELOC’s, so it fits a long stay rather than a short-term need.
What is a jumbo reverse mortgage?
A private reverse mortgage for homes worth more than the HECM limit. It isn’t FHA-insured, so terms vary by lender, and it can unlock more cash from a high-value California home.
Can I use a reverse mortgage to buy a home in California?
Yes, with a HECM for Purchase: you put down a large share of the price and the reverse mortgage covers the rest, with no monthly mortgage payment.
Related
Reverse mortgages in other states: Arizona, Florida, Ohio. All of California: mortgage loans in California.
