Reverse Mortgages in California

California is one of the largest reverse mortgage markets in the country. With high home values and a large senior population, many California families are exploring reverse mortgages as a way to access home equity for retirement income, care planning, or simply eliminating a monthly mortgage payment.

California Property Tax Protections for Reverse Mortgage Borrowers

California offers several property tax programs that can benefit reverse mortgage borrowers:

• Proposition 19 (Homeowners’ Exemption): Provides a $7,000 reduction in assessed value for primary residences. This can save seniors hundreds of dollars annually on property taxes.
• Proposition 60/90: Allows qualifying seniors (55+) to transfer their property tax base to a replacement home within the same county (or to certain participating counties). This is especially relevant for seniors using a HECM for Purchase to downsize.
• Property Tax Postponement Program: Allows eligible seniors (62+) with limited income to defer property tax payments. The lien is repaid when the home is sold or the owner passes away.

What California Families Should Know

• California has some of the highest home values in the nation, which means seniors often have significant equity to access
• Property taxes can be high, making the Property Tax Postponement Program particularly valuable
• The HECM lending limit applies ($1,149,825 in 2024), which may limit borrowing on very high-value homes
• California is a community property state, which can affect how reverse mortgage decisions are made by married couples