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)
$1,249,125
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
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
HUD-Approved Counseling in California
Federal law requires an independent counseling session before any HECM application. Counseling can be done by phone and typically takes 60–90 minutes. Find a HUD-approved counselor in California →
California HECM FAQ
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.