For California homeowners age 62 and older, a reverse mortgage can be a powerful financial planning tool — allowing you to access the equity you’ve built over decades without selling your home or making monthly mortgage payments. Here’s what you need to know about reverse mortgages in California for 2026.
What Is a Reverse Mortgage?
A reverse mortgage is a loan that allows homeowners 62 or older to borrow against their home equity. Unlike a traditional mortgage, you don’t make monthly principal and interest payments. Instead, the loan balance grows over time and is repaid when the last borrower permanently leaves the home — either by selling, moving out, or passing away. The heirs can repay the loan and keep the home, or sell the home to satisfy the balance.
HECM: The Most Common Reverse Mortgage
The Home Equity Conversion Mortgage (HECM) is the most widely used type of reverse mortgage, insured by the Federal Housing Administration. HECMs are available through FHA-approved lenders and are subject to federal guidelines, including required counseling from a HUD-approved counselor before you can apply.
2026 HECM Loan Limit in California
For 2026, the HECM lending limit (the maximum home value considered for the loan) is $1,209,750. This means even if your California home is worth $3 million, the HECM calculation is based on the $1,209,750 limit. For homeowners with higher-value properties, a jumbo reverse mortgage (also called a proprietary reverse mortgage) may provide access to more equity.
How Much Can You Borrow?
The amount you can access depends on:
- Your age (older borrowers qualify for a larger percentage)
- The appraised value of your home (up to the lending limit)
- Current interest rates (lower rates = more available equity)
- Any existing mortgage that must be paid off first
Generally, borrowers can access 40–75% of their home’s value. A 75-year-old California homeowner with a $900,000 home and no existing mortgage might access $400,000–$550,000 in equity.
Ways to Receive Funds
HECM borrowers can receive funds in several ways:
- Lump sum: Fixed-rate option only; one-time disbursement at closing
- Line of credit: Draw funds as needed; unused credit line grows over time
- Monthly payments: Fixed monthly payment for a set term or for life (tenure)
- Combination: Mix of line of credit and monthly payments
The growing line of credit is one of the most compelling features — it grows at the same rate as the loan interest rate, meaning the longer you wait to draw on it, the more you have available. This makes it an excellent financial planning tool for future healthcare costs or other needs.
Requirements for a California Reverse Mortgage
- Age 62 or older (all borrowers on title must qualify)
- The home must be your primary residence
- You must continue to pay property taxes, homeowner’s insurance, and HOA fees
- Home must be well-maintained (reverse mortgages require ongoing property upkeep)
- Required HUD-approved reverse mortgage counseling before applying
Jumbo Reverse Mortgages in California
For homeowners with high-value California properties — common in Marin County, the Bay Area, and coastal communities — a proprietary jumbo reverse mortgage may allow you to access significantly more equity than an HECM. Loan amounts for jumbo reverse programs can reach $4 million or higher on qualifying properties. These programs are not FHA-insured but can be an excellent option for asset-rich California homeowners.
Is a Reverse Mortgage Right for You?
A reverse mortgage is a significant financial decision. It’s not right for everyone, but for many California homeowners with substantial home equity and a desire to stay in their home, it can provide meaningful financial flexibility. We encourage all interested borrowers to complete the required HUD counseling and speak with a financial advisor before proceeding.
Have questions? Contact DiVita Home Finance — we’re happy to explain how reverse mortgages work and whether it might make sense for your situation.
