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. Prop 19 portability is one of the most powerful and least understood financial advantages available to California homeowners over 55 — I factor it into every pre-qualification for eligible clients. Call (800) 239-1103.
For California homeowners over 55 who have been locked into their current home by property tax fear, Proposition 19 may have changed everything. You can now sell your long-held home and buy a bigger, better, or more conveniently located home anywhere in California — while taking your low Prop 13 assessed value with you.
The Problem Prop 19 Solves: The Prop 13 Lock-In
Many California homeowners bought their current homes decades ago and accumulated extremely low assessed values under Prop 13’s 2% annual cap. A Ross homeowner who paid $250,000 in 1995 might have a current assessed value of $450,000 on a home now worth $3,000,000 — paying roughly $5,625/year in property taxes instead of $37,500. The prospect of losing that base and paying full market-value property taxes on a new home has discouraged moves for decades — even when homeowners were ready for a change in size, location, or lifestyle. Prop 19 broke that lock.
How the Portability Transfer Works
Under Prop 19, a homeowner who is 55 or older (or severely disabled, or a wildfire/natural disaster victim) can transfer their existing Prop 13 assessed value to any replacement property in California — regardless of location or price — up to three times in a lifetime. If the new home costs the same or less than the sale price of the old home, the assessed value transfers exactly. If the new home costs more, the assessed value is adjusted upward by the difference.
Example: you sell your Ross, CA home for $1,200,000. Your assessed value was $350,000. You buy a $1,500,000 home in Sonoma County. New assessed value = $350,000 + ($1,500,000 − $1,200,000) = $650,000. Your property taxes are based on $650,000, not $1,500,000 — saving approximately $10,625/year at California’s roughly 1.25% effective rate. Over 20 years, that’s over $212,000 in property tax savings on the new home alone.
The Mortgage Angle: Lower Taxes Mean More Buying Power
Lower property taxes mean a lower monthly PITI — and a lower PITI means you can qualify for a larger mortgage than a standard quote suggests. When I calculate your pre-qualification using the Prop 19-adjusted assessed value on the replacement property, many clients discover they can afford significantly more home than they assumed. I always factor Prop 19 into qualification analysis for clients 55+. The difference can be meaningful: on a $10,000/month income borrower with a 43% DTI, a $750/month reduction in property taxes (PITI component) can translate to roughly $100,000 in additional loan capacity.
Frequently Asked Questions — Prop 19 Home Upgrade California
How many times can I use Prop 19 portability in California?
Up to three times in your lifetime. Each use of Prop 19 portability counts as one of your three transfers. Most homeowners use it once — selling a longtime family home and buying a replacement — but the three-lifetime cap means you have flexibility if circumstances change and you need to move again. Each transfer requires that the replacement property is your primary residence and that you are 55 or older (or meet the other qualifying criteria) at the time of the sale.
Can I use Prop 19 to buy a more expensive home and still save on property taxes?
Yes — as long as the new home’s price exceeds the old home’s sale price by less than the difference between your old assessed value and market value, you come out ahead. In the example above: old assessed value $350,000, market value $1,200,000, new home $1,500,000. New assessed value is $650,000 — still far below the $1,500,000 market value of the new home. Your property taxes are based on $650,000 rather than $1,500,000, saving over $10,000/year even on the upgraded property. The savings erode if the price of the new home significantly exceeds the sale price of the old one, but for most California move-up situations, the Prop 19 transfer still produces meaningful savings.
Does Prop 19 portability affect how much mortgage I can qualify for?
Yes — positively. Lenders include estimated property taxes in your PITI (principal, interest, taxes, insurance) when calculating your debt-to-income ratio. If Prop 19 portability cuts your annual property tax from $25,000 to $8,000 on the replacement property, that’s $1,417/month less in your housing payment — which directly expands how much loan you can qualify for. I calculate your Prop 19-adjusted PITI for the replacement property when modeling your pre-qualification, which often shows clients they can afford significantly more than a standard rate-and-payment quote suggests.
Talk to Michael Directly
DiVita Home Finance | Tiburon, CA | In lending since 2000, founded DiVita Home Finance in 2007. Michael DiVita DRE #01372066 | NMLS #241655. Company DRE #01818285 | NMLS #323700.
💬 Text: (310) 849-9124
