San Diego Reverse Mortgages and Home Loans

San Diego homeowners who bought years ago often find themselves in a strange spot. The house is worth more than they ever imagined, and the monthly budget feels tighter than they ever imagined. Rich on paper, careful at the grocery store.

If that's you, a reverse mortgage is worth understanding. But in San Diego, the real question usually isn't whether you can get one. It's which one. On many homes here, the HECM and a jumbo reverse mortgage give very different answers, and the condo and insurance rules can decide it before we ever get to rates.

The short version

• We help with reverse mortgages and regular home loans for San Diego homes, through our California loan officers.
• HECM or jumbo? The HECM counts your home's value only up to a national limit. If your home is worth more, a jumbo may give you access to more. I'll show you both.
• Condos need a check first. A HECM generally needs FHA approval for the project or the unit.
• Insurance is non-negotiable. You must keep homeowners insurance, and in parts of San Diego County that has gotten harder to find.
• California makes you wait 7 days after counseling before a reverse mortgage application is final.

HECM vs. jumbo on a San Diego home

The HECM

The HECM is the FHA-insured reverse mortgage. You must be 62 or older, live in the home as your primary residence, and have enough equity. You can take a line of credit, monthly payments, a lump sum, or a mix.

There are no required monthly mortgage payments. You must continue to pay property taxes and homeowners insurance, maintain the home, and meet the other loan terms.

Here's the catch on a higher-value home: HUD only counts value up to the national lending limit. A home worth more still qualifies. The extra value just doesn't add to how much you can get. See Lending Limits.

Proprietary (jumbo) reverse mortgages

A jumbo reverse mortgage is a private program with its own, higher limits. They don't charge FHA mortgage insurance, because they aren't FHA-insured. Some also accept condos that aren't FHA-approved.

We compare programs including Mutual of Omaha Secure Equity, Finance of America HomeSafe, Longbridge Platinum, Smartfi Choice, Nationwide Equities EquityPower, and MCM Holdings MCM Edge, and availability varies by state. HomeSafe Standard is approved in California.

How I decide between them

I run both with the same facts and look at four things:

1. How much money each one opens up, today and over time.
2. What each costs upfront, including FHA mortgage insurance on the HECM.
3. How you want the money. The HECM's growing line of credit is hard to beat if you don't need it all now. Many jumbos are a lump sum.
4. What protections come with each. The HECM's are set by HUD. A jumbo's protections are set by its own loan documents.

Sometimes the jumbo wins by a mile. Sometimes the HECM wins even on an expensive home, because of the line of credit. You'll see it in black and white. Compare today's rates too.

Condos in San Diego

If you own a condo, that changes the first step.

For a HECM, the condo generally needs FHA project approval, or the individual unit may qualify through single-unit approval. If neither works, some jumbo programs accept non-FHA-approved condos after their own review. I'll check before you pay for an appraisal.

Two more things on condos:

• HOA dues and special assessments are part of what you must keep paying with a reverse mortgage.
• Ask the association about its insurance and reserves. A building with thin reserves or a gap in its master policy can create problems for the loan and for you.

Insurance and your reverse mortgage

You must keep homeowners insurance on the home for the life of the loan. In parts of California, policies have become harder to find, and some homeowners end up with the California FAIR Plan, the state's insurer of last resort, often paired with a difference-in-conditions policy to fill the gaps. The lenders we work with accept that combination. If that's your situation, tell me at the start so we can check the coverage amounts.

Earthquake insurance generally isn't required for a HECM, but whether you want it is a fair question to ask your agent.

Your insurance premium is also part of the financial assessment. If property taxes and insurance look tight, part of the loan can be set aside to pay them for you.

California property taxes: Prop 13 and Prop 19

Prop 13

Your assessed value can generally rise by no more than 2 percent a year under Prop 13. A reverse mortgage is a loan, not a change in ownership, so your Prop 13 base stays the same.

Prop 19 if you want to move

If you're 55 or older and sell your primary residence, Prop 19 lets you take its taxable value to a replacement home anywhere in California, up to three times, if you buy within two years. If the new home costs more than the old one sold for, the difference is added.

Pair that with a HECM for Purchase, and you can move to a home that fits the next stage of life, keep a lower tax base, and skip the new monthly mortgage payment. You must continue to pay property taxes and homeowners insurance, maintain the home, and meet the other loan terms.

Property Tax Postponement

California's Property Tax Postponement program can't be used on a home with a reverse mortgage, and getting one makes any postponed taxes due. If you're in the program, tell me before we start. See the State Controller's site.

California's 7-day counseling wait

Before any HECM, you meet with an independent, HUD-approved counselor. California adds its own rule: a lender can't accept your final, complete reverse mortgage application, or charge you fees, until 7 days after counseling. California law also bars a lender from requiring you to buy an annuity to get a reverse mortgage. Read Why do I need to wait 7 days after counseling?

Home loans for San Diego buyers and owners

We also help with:

• Buying a home and seeing your buying power before you shop.
• Refinancing.
• Home equity loans and HELOCs.
• Jumbo loans, conventional loans, and FHA loans.
• VA loans for eligible veterans and service members.

Request a rate quote for your numbers.

How we work with San Diego clients

1. A conversation by phone or video. We'll compare the HECM and jumbo for your home.
2. A condo and insurance check, if they apply, before anything is ordered.
3. Counseling with an independent, HUD-approved counselor, then the 7-day wait.
4. Application and appraisal.
5. Signing usually at home with a mobile notary.

San Diego resources

• California Department of Aging: find services in your county
• California State Board of Equalization: Prop 19
• California State Controller: Property Tax Postponement
• HUD-approved housing counselors: hud.gov/counseling or (800) 569-4287

Common questions

My home is worth more than the HECM limit. Can I still get a HECM?

Yes. The limit only caps the value used in the math. A jumbo may give you access to more, and I'll show you both.

Can I get a reverse mortgage on a San Diego condo?

Often. For a HECM, the condo generally needs FHA project approval or single-unit approval. Some jumbo programs accept non-approved condos.

What if my insurance company won't renew?

Tell your loan officer right away. You must keep coverage in force, and we'll help you figure out what the lender will accept.

Will a reverse mortgage reassess my property taxes?

No. It's a loan, not a change in ownership.

Why do I have to wait 7 days after counseling?

It's California law, meant to give you time to think it over without pressure.

Next step

Get My Estimate, find a loan officer for California, or call us at 530-888-6000. See our California page and the full guide to Reverse Mortgages.

Sources

• California State Board of Equalization, Introduction to Prop 19: boe.ca.gov
• California Civil Code section 1923.2: justia.com
• California State Controller's Office, Property Tax Postponement Fact Sheet: sco.ca.gov
• HUD Mortgagee Letter 2019-17, summarized by Hinshaw & Culbertson: hinshawlaw.com
• HUD Mortgagee Letter 2025-22, HECM Maximum Claim Amount: hud.gov
• HUD, FHA Reverse Mortgage for Seniors (HECM): hud.gov