Home Equity Conversion Mortgage · Age 62+
Reverse Mortgages in California (HECM)
An FHA-insured HECM lets California homeowners 62 and older turn equity into cash, monthly income or a growing line of credit, with no required monthly principal and interest payment. California adds a worksheet, a counseling certificate and a seven-day waiting period before a lender can even take your application.
Overview
California puts a clock and a worksheet in front of the loan.
A Home Equity Conversion Mortgage is a federal FHA program, but California’s Reverse Mortgage Elder Protection Act (Civil Code sections 1923 through 1923.5) adds real procedure on top of it. Before any application, you receive a plain-language warning and the state’s Reverse Mortgage Worksheet Guide, printed in 14-point type, which walks through what happens to others in the home, the default risk from unpaid taxes or insurance, cheaper alternatives, and the effect on Medi-Cal and other benefits. You get a list of at least ten HUD-approved counseling agencies, and counseling happens in person unless you elect another format on the certificate. Then the clock: a lender cannot accept a final application, or charge you any fee, until seven days after the counseling date. California also bars requiring an annuity purchase and bars referrals to annuity or insurance sellers before closing. Plan the calendar accordingly — in California, the paperwork order is part of the product.
Licensed in California (DFPI) · NMLS 1352284 · California mortgage lending statewide · Reverse mortgage overview
Who it is for
Is a reverse mortgage right for you in California?
- California homeowners 62 and older with substantial equity
- Retirees who want cash flow without triggering a Proposition 13 reassessment by selling
- Homeowners 55+ combining a move with a Proposition 19 base-year value transfer
- Anyone weighing a HECM line of credit against selling appreciated investments
- Buyers using HECM for Purchase to right-size within California
- Not a fit if you rely on the state Property Tax Postponement program
Highlights
What is different about a California reverse mortgage
A seven-day waiting period
Civil Code 1923.2 bars a lender from accepting a final application, or charging you any fee, until seven days after the date shown on your counseling certificate.
The worksheet comes first
You get the state Reverse Mortgage Worksheet Guide in 14-point type before counseling, and your signed copy must reach the lender before the loan can be approved.
Ten agencies, your choice
The lender must hand you a list of at least ten HUD-approved counseling agencies. Counseling is in person unless the certificate shows you elected otherwise.
No annuity attached
California prohibits requiring an annuity as a condition of the loan and bars referrals to annuity or insurance sellers before closing.
Property Tax Postponement trade-off
The State Controller’s program for homeowners 62+ requires that there be no reverse mortgage on the property. Taking a HECM ends that option for good.
Proposition 19 pairs with purchase
At 55+ you can move your base-year value to a replacement home anywhere in California, up to three times, which lowers the tax bill a HECM requires you to keep current.
Questions
California reverse mortgage questions
How long does a California reverse mortgage take?
Longer than the federal process alone. Counseling has to happen first, and your lender cannot accept a final application or charge a fee until seven days after the counseling date. Build that week into any purchase or payoff deadline.
Can I use California’s Property Tax Postponement program with a reverse mortgage?
No. The State Controller’s program requires that the property not have a reverse mortgage, because a reverse mortgage reduces equity over time. If postponement is carrying your tax bill today, weigh that before applying for a HECM.
Does Proposition 19 work with a HECM for Purchase?
Yes, and they complement each other. At 55 or older you can transfer your base-year value to a replacement home anywhere in California, up to three times, while a HECM for Purchase finances the new home with no required monthly principal and interest payment.
Can California counseling be done by phone?
Yes, if you elect it. State law requires counseling in person unless the counseling certificate specifies that you chose another format.
Ready to explore a reverse mortgage in California?
Every scenario is different, and California’s timing rules mean the calendar is part of the plan. Let’s talk through yours. Call (303) 557-3846 or start online.
This material is not from HUD or FHA and has not been approved by HUD or any government agency. This page is educational and is not financial, tax, or legal advice, and it is not a commitment to lend. State and local figures cited are current as of September 2026 and change — confirm exemption amounts, income limits and program rules with your county and the applicable state agency. A reverse mortgage is a loan secured by your home. You must continue to pay property taxes, homeowners insurance and any HOA dues, maintain the property, and occupy it as your principal residence; failure to do so may cause the loan to become due and payable. Borrower must be 62 or older. Independent HUD-approved counseling is required. All loans subject to credit approval, property valuation and program guidelines. David Silva, NMLS 1352284. Equal Housing Lender.