Jumbo Reverse Mortgages in California

I’m Michael DiVita — DRE #01372066 | NMLS #241655, DiVita Home Finance (DRE #01818285 | NMLS #323700), Tiburon, CA. I’ve been in California mortgage lending since 2000 and founded DiVita Home Finance in 2007. I’m known as a creative mortgage broker: when a bank says no, I find the lender and the loan structure that can say yes. I quote FHA HECMs and private jumbo reverse mortgages side by side for Marin, San Francisco and other high-value California homes. Call (800) 239-1103.

A jumbo reverse mortgage is a private (proprietary) reverse mortgage for higher-value homes. It works like an FHA HECM — no monthly mortgage payments, repaid when you sell, move out or pass away — but it isn’t limited to the 2026 HECM cap of $1,249,125 of home value. In high-cost California markets it can unlock substantially more equity than a HECM.

Why the HECM Limit Matters in California

For 2026, HUD will count no more than $1,249,125 of your home’s value when it calculates HECM proceeds. That covers most of the country, but in Marin, San Francisco, Silicon Valley and much of coastal California, homes regularly sell for $2 million to $5 million. A $3 million home is treated as a $1,249,125 home for a HECM — the rest of the equity simply isn’t counted. A jumbo reverse mortgage lends against more of the actual value.

HECM vs. Jumbo Reverse Mortgage

Feature	HECM (FHA)	Jumbo / proprietary
Home value used	Up to $1,249,125 (2026)	Higher values, set by each lender
Insurance	FHA-insured: 2% upfront + 0.5% a year	No FHA mortgage insurance
Minimum age	62	62, or as young as 55 on some programs
Non-recourse	Yes, backed by FHA insurance	Common, but check each program’s terms
Condos	FHA project or single-unit approval required	Often more flexible, including many non-FHA-approved condos
Payout options	Line of credit (grows), monthly payments, lump sum	Varies: often lump sum or line of credit; monthly tenure payments usually not offered
Rates	Fixed (lump sum only) or adjustable	Program-specific; often somewhat higher than HECM
Rules set by	HUD	The lender, within state and federal consumer law

Example: $2.5 Million Marin Home, Age 72

With a HECM, the calculation uses $1,249,125, not $2.5 million. At a 6.375% expected rate, HUD’s factor for a 72-year-old is roughly 41%, so the HECM principal limit is about $511,000 before costs — and the upfront FHA mortgage insurance alone is about $24,980 (2% of $1,249,125).

A jumbo program lends against far more of the $2.5 million value and has no FHA mortgage insurance, so it can often produce meaningfully more cash — but its rate, fees and lending percentage depend on the program. The only reliable way to compare is to price both on your home, which I do side by side.

Rule of thumb: below about $1.25 million, the HECM usually wins on protections and pricing. Near the limit, compare both. Well above it, the jumbo usually delivers more proceeds.

Who a Jumbo Reverse Mortgage Fits

• Homeowners with properties well above the HECM limit — common in Marin, San Francisco, the Peninsula and coastal Southern California
• Owners aged 55–61 who want a reverse mortgage before they’re eligible for a HECM (on programs that allow it)
• Condo owners whose building isn’t FHA-approved
• Homeowners who want to pay off a large existing mortgage that a HECM’s proceeds can’t cover

Eligibility

• Age 62+, or 55+ on some programs
• Primary residence
• Enough equity to pay off any existing mortgage at closing
• Single-family homes, most condos and townhomes; some programs accept 2–4 units. Manufactured homes generally don’t qualify.
• A financial review of credit and your ability to keep paying property taxes, insurance and HOA dues

Counseling: federal law requires HUD-approved counseling for HECMs. Under California Civil Code §1923.2, a lender also can’t accept a final reverse mortgage application or charge fees until seven days after counseling, and can’t require or steer you into annuities before closing. Even when a program doesn’t require counseling, I recommend it.

Common Uses

• Eliminating a mortgage payment — for example, paying off a $400,000 balance so that cash flow goes back into your budget.
• Bridging to a later Social Security claim — using home equity for a few years so benefits start later and larger. Talk to your financial planner.
• A reserve for in-home care or other large expenses while you stay in the home.
• Helping family while you remain in the house.

The Risks to Weigh

• The balance grows. With no payments, interest compounds. At 7%, a balance roughly doubles in about 10 years — $800,000 would grow to about $1.6 million — which reduces what you leave to heirs.
• No FHA insurance. Protections come from the loan contract, not HUD. Confirm the non-recourse language, what happens if you move to a care facility, and how a surviving spouse is treated.
• Ongoing obligations. You must keep paying property taxes, insurance and HOA dues, maintain the home and live there. Falling behind can trigger default.
• Benefits. Proceeds aren’t income for tax purposes and don’t affect Social Security or Medicare, but cash you hold can count toward SSI or Medi-Cal asset limits.

Frequently Asked Questions

What is a jumbo reverse mortgage?

It’s a private reverse mortgage for higher-value homes. Like a HECM, it requires no monthly mortgage payments and is repaid when you sell, move out or pass away, but it isn’t limited to the 2026 HECM cap of $1,249,125 of home value and it has no FHA mortgage insurance.

What is the minimum age for a jumbo reverse mortgage in California?

Many programs require 62, but some proprietary programs available in California accept borrowers as young as 55. A HECM always requires the youngest borrower to be at least 62.

Are jumbo reverse mortgages safe?

They can be, with an established lender and clear terms. They aren’t FHA-insured, so read the contract: most major programs are non-recourse, meaning you or your heirs won’t owe more than the home is worth, but confirm that and the rules for spouses and move-outs before you sign.

Can I get a jumbo reverse mortgage on a condo?

Often yes, including many condos that aren’t FHA-approved and therefore can’t get a HECM. The unit must be your primary residence and meet the lender’s own project guidelines.

How much more can I get from a jumbo than a HECM?

It depends on your age, home value, rates and the program. On a $2.5 million home at age 72, a HECM’s principal limit is roughly $511,000 because it counts only $1,249,125 of value; a jumbo program can often provide considerably more. I price both side by side for your home.

Related Resources

• Reverse Mortgages in California: Complete Guide
• HECM for Purchase
• Reverse Mortgage vs. HELOC
• Jumbo Loans in California
• Marin County Mortgages
• San Francisco Mortgages

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