I’m Michael DiVita — DRE #01372066 | NMLS #241655, DiVita Home Finance (DRE #01818285 | NMLS #323700), Tiburon, CA. Call (800) 239-1103.
If you own a home in California and you’re 62 or older, you may be sitting on hundreds of thousands of dollars in equity that’s doing nothing for your retirement. A reverse mortgage lets you access that equity as tax-free cash — without selling your home or making monthly mortgage payments. Here’s exactly how it works.
The Basic Concept
A traditional mortgage works in one direction: you borrow money to buy a home and make monthly payments until the loan is paid off. A reverse mortgage works in the opposite direction. Instead of you paying the lender, the lender pays you — drawing from the equity you’ve already built. Your loan balance grows over time rather than shrinking, and the loan isn’t repaid until you sell, move out permanently, or pass away.
Crucially: you remain the owner of your home. Your name stays on the title. You can never be forced out as long as you pay your property taxes, maintain homeowner’s insurance, and keep the home as your primary residence.
Two Types: HECM and Jumbo Reverse Mortgage
HECM (Home Equity Conversion Mortgage)
The HECM is FHA-insured and the most common reverse mortgage. The HECM max claim amount is set annually by FHFA and covers a large portion of California homes. It comes with required HUD counseling and FHA mortgage insurance premiums (MIP), but the insurance protects both you and your heirs: if your loan balance ever exceeds the home’s value, FHA covers the difference. Call DiVita Home Finance for the current 2026 HECM limit.
Jumbo Reverse Mortgage (Proprietary)
For California homeowners with higher-value properties — particularly in Marin County, San Francisco, the Peninsula, or other premium markets — a jumbo reverse mortgage can unlock significantly more equity. These are private lender products on homes valued up to $4 million or more. No FHA mortgage insurance means lower costs, and the higher loan amounts make them ideal for luxury California properties. DiVita Home Finance offers jumbo reverse mortgages alongside HECM.
Step-by-Step: How the Process Works
- Free consultation. We review your age, home value, existing mortgage balance, and goals to see how much you can access and which product fits best.
- HUD counseling (HECM only). A brief independent counseling session — typically by phone — required by FHA. Usually takes 60–90 minutes.
- Application and appraisal. We order a full home appraisal to confirm value, then submit the loan package to the lender.
- Underwriting. The lender reviews your financial assessment — income, credit, tax payment history — to confirm you can maintain property charges.
- Closing. You sign final loan documents, typically with a notary at your home or a title company.
- 3-day right of rescission. Federal law gives you 3 business days after closing to cancel with no penalty.
- Funds disbursed. After rescission, funds are released in your chosen format — lump sum, monthly payments, line of credit, or a combination.
What You Pay — and What You Don’t
No required monthly payments. Interest accrues and adds to your loan balance, but you make zero required payments. You can always make voluntary payments to keep the balance from growing.
You do pay: property taxes, homeowner’s insurance, HOA dues if applicable, and basic home maintenance. These are the conditions for keeping the loan in good standing.
When Does the Loan Come Due?
The reverse mortgage becomes due when:
- You sell the home
- The last borrower moves out of the home permanently (including moving to assisted living for 12+ consecutive months)
- The last borrower passes away
- You fail to pay property taxes or insurance (default)
When the loan comes due, the home is typically sold and the loan repaid from the proceeds. Any equity remaining after repayment belongs to you or your heirs. And because reverse mortgages are non-recourse loans, heirs are never on the hook for more than the home’s value — even if the loan balance grew larger.
Frequently Asked Questions
How old do you have to be to get a reverse mortgage in California?
You must be at least 62 years old to qualify for a HECM (Home Equity Conversion Mortgage), which is the FHA-insured reverse mortgage. Some proprietary jumbo reverse mortgage products may have slightly different age requirements — typically also 62, though some lenders offer programs starting at 55 for specific products. All borrowers on title must meet the minimum age requirement.
Do you have to pay back a reverse mortgage?
Yes — but not with monthly payments while you live in the home. A reverse mortgage is repaid when you sell the home, move out permanently, or pass away. At that point, the loan balance (principal + accrued interest) is repaid from the sale proceeds. Because reverse mortgages are non-recourse loans, you or your heirs can never owe more than the home is worth at the time of sale — even if the loan balance exceeded the home’s value.
What is the difference between a HECM and a jumbo reverse mortgage?
A HECM is FHA-insured and available up to the annual HECM lending limit set by FHFA. It requires HUD counseling and FHA mortgage insurance premiums. A jumbo reverse mortgage is a private lender product for higher-value homes — typically above the HECM limit, up to $4M or more. Jumbo products have no FHA MIP, often lower closing costs, and are especially valuable for homeowners in Marin County, San Francisco, and other high-value California markets. DiVita Home Finance can run both options side by side for your specific home value.
Can the lender take my home with a reverse mortgage?
No — not simply because the loan balance grows or the lender wants their money back. You remain the owner and remain protected as long as you pay property taxes, maintain homeowner’s insurance, and keep the home as your primary residence. Foreclosure can only happen if you fail to meet those obligations. For more detail, see our guide: Can You Lose Your Home With a Reverse Mortgage?
Related California Reverse Mortgage Resources
- HECM Reverse Mortgage California 2026 — Complete guide to FHA-insured HECM loans, 2026 lending limits, and payout options
- Jumbo Reverse Mortgage California — For homes over $1.2M: compare jumbo vs. HECM proceeds side by side
- HECM for Purchase California — Buy a new California home at 62+ with no monthly mortgage payments
- California Reverse Mortgage Guide — Overview of all reverse mortgage options for California seniors
- Reverse Mortgage Pros and Cons 2026
- Can You Lose Your Home with a Reverse Mortgage?
Talk to Michael Directly
DiVita Home Finance | Tiburon, CA | Licensed since 2007. Michael DiVita DRE #01372066 | NMLS #241655. Company DRE #01818285 | NMLS #323700.
💬 Text: (310) 849-9124
