State Guide

Reverse Mortgage (HECM) Guide for California Homeowners 62+

California has roughly 2.1 million homeowner households led by someone 62 or older — one of the largest senior homeowner populations in the country. With a statewide median home value of $683,000, many California homeowners have built substantial equity, particularly in the Bay Area, Los Angeles, and San Diego. A HECM can allow qualifying seniors to tap that equity without selling or taking on monthly mortgage payments.

Source: U.S. Census Bureau ACS 2022 1-Year Estimates (Table B25077); U.S. Census Bureau ACS 2022 1-Year Estimates (Table B25007)

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2026 FHA Lending Limit
$1,249,125

2026 FHA HECM National Lending Limit

California's high home values mean many borrowers — especially in coastal metros — may have homes worth more than the 2026 FHA HECM limit of $1,249,125. In those cases, the maximum loan is calculated using $1,249,125 as the property value ceiling, not the actual appraised value. Jumbo (proprietary) reverse mortgages exist for homes above this threshold.

Source: HUD Mortgagee Letter 2025-21

Consumer Protections

California Reverse Mortgage Protections

California has some of the strongest state-level reverse mortgage protections in the country. Under California Civil Code § 1923.2, lenders must provide a cooling-off period and specific written disclosures before a HECM can close. California also requires independent legal counsel for borrowers in certain circumstances and mandates a 7-day right of rescission for HECM transactions, which is more protective than the federal 3-day right.

Source: California Civil Code §§ 1923–1923.10; California Department of Real Estate Reverse Mortgage Disclosure

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How Much Could You Get? — California

Adjust your age and home value to see a quick estimate. Full calculator →

6295
$100k$1.5M
$
Est. Principal Limit $195,600
Minus Mortgage Payoff $0
Est. Net Available to You $195,600

Estimate based on HUD PLF tables at 6.5% assumed expected rate. Actual amounts depend on formal appraisal and lender terms.

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Source: HUD Principal Limit Factor tables · HUD HECM page

Required by Federal Law

Find a HUD-Approved HECM Counselor in California

Before you can apply for any HECM, federal law requires a one-on-one counseling session with an independent HUD-approved counselor. This is not optional — no FHA-approved lender may accept your application without a valid counseling certificate. The session covers how HECMs work, costs, alternatives, and your rights as a borrower. It typically takes 60–90 minutes and can be done by phone.

Find a HUD Counselor in California →

This link opens the HUD HECM Counselor search tool. Filter by state (CA) to find agencies near you.

Am I Eligible?

The 6 Basic HECM Eligibility Requirements

These are the same federal requirements that apply to every HECM in every state, including California.

  • Age 62 or older The youngest borrower on the title must be at least 62.
  • Your primary home You live in this home as your main residence — not a vacation or rental property.
  • Significant home equity You own the home free and clear, or have paid down most of the mortgage — generally 50% or more equity.
  • Located in an eligible state FHA HECM is available in all 50 states, Washington D.C., and U.S. territories — including California.
  • No existing reverse mortgage Standard HECMs are for first-time reverse mortgage borrowers. Other options exist if you've had one before.
  • Plan to stay in your home A HECM is designed for homeowners who intend to remain in their home long-term.
Pre-Qualification

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Common Questions

HECM Questions for California Homeowners

Are HECMs available in California?

Yes. California is one of the most active HECM markets in the United States. FHA-approved lenders licensed in California can originate HECM loans statewide.

Does California require additional reverse mortgage counseling?

California reinforces the federal HUD counseling requirement with its own state law. Under California Civil Code, lenders must provide a mandatory disclosure form and borrowers must receive HUD counseling before any application is accepted. California also gives borrowers a 7-day cooling-off period after counseling before the lender may accept an application.

My California home is worth over $1.2 million — does the HECM limit apply to me?

The 2026 FHA HECM limit of $1,249,125 caps the property value used in the loan calculation. If your home appraises at $1.6 million, the HECM is sized as if the home is worth $1,249,125. For homes significantly above the limit, proprietary (jumbo) reverse mortgages from private lenders may allow higher loan amounts — but they are not FHA-insured.

How do California property taxes interact with a HECM?

HECM borrowers must keep property taxes current. California's Proposition 13 limits property tax increases to 2% annually on existing owners, which often keeps taxes manageable for long-term homeowners. Proposition 19 also allows eligible seniors to transfer a low tax basis to a replacement home. These provisions can make it easier to stay current on property obligations while holding a HECM.

Where can I find a HUD-approved HECM counselor in California?

California has many HUD-approved HECM counseling agencies. Use the HUD HECM Counselor Search (link above) filtered to California. Phone counseling is available statewide, including Spanish-language sessions from many agencies.