San Jose Reverse Mortgages and Home Loans

In a lot of the country, the question is whether a reverse mortgage makes sense at all. On a high-value home, there's a second question that matters just as much: which one?

That's because the HECM, the FHA-insured reverse mortgage, has a national lending limit. If your home is worth more than that limit, the extra value doesn't add anything to a HECM. A proprietary jumbo reverse mortgage can look at more of your home's value, but it plays by different rules. So on a San Jose home, I almost always run both. This page explains why, and covers the California rules you'll run into either way.

The short version

• We help with reverse mortgages and regular home loans for San Jose and Santa Clara County homes, through our California loan officers.
• The HECM limit caps how much home value counts on a HECM. See Lending Limits.
• A jumbo reverse mortgage can go higher, with no FHA mortgage insurance, but different rules.
• With either one, 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.
• California makes you wait 7 days after counseling before a reverse mortgage application is final.

HECM vs. jumbo on a San Jose home

How the HECM works on a high-value home

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.

The amount you can access starts from the maximum claim amount, which is the smallest of your home's appraised value, the HECM lending limit, or the purchase price. On a home worth well above the limit, the limit wins. A home worth twice the limit doesn't get twice the money on a HECM.

The HECM still has strengths a jumbo often can't match:

• A line of credit that grows. On an adjustable HECM, the unused part grows over time, and the lender can't freeze or cut it as long as you meet the loan terms. See the standby line of credit strategy.
• The most payout choices. Line of credit, monthly payments for life or a set term, a lump sum, or a mix.
• Federal protections, like the non-recourse feature and protections for an eligible non-borrowing spouse.

How a jumbo reverse mortgage works

A proprietary (jumbo) reverse mortgage is a private loan, not insured by FHA. That changes a few things:

• It isn't capped by the HECM limit. Each program sets its own maximum, which can be well above it.
• There's generally no FHA mortgage insurance, which can mean much lower upfront costs on an expensive home.
• Rates are usually higher, and payout choices are often narrower. Many are fixed-rate lump sums, and some offer a line of credit.
• Each program writes its own rules on things like spouses. The jumbo programs we offer are non-recourse by contract rather than FHA insurance, so we review each product's documents with you.

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 line them up on four things:

1. How much money you can actually access, today and over time.
2. What it costs upfront, including FHA mortgage insurance on the HECM.
3. How you want the money: a growing line of credit, monthly income, or a lump sum.
4. The protections you care about, especially if your spouse is younger than 62.

Sometimes the jumbo wins on dollars. Sometimes the HECM's growing line of credit wins over the long run, even with less money upfront. It depends on your numbers and your plans. Read Reverse Mortgage Costs and today's rates for more.

Buying your next home

If you're thinking about moving, the HECM for Purchase lets you buy with a down payment and a reverse mortgage for the rest. After closing, 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. Some jumbo programs have purchase options too.

Prop 13 and Prop 19 in Santa Clara County

Prop 13 stays with you

Under Prop 13, your assessed value can generally rise by no more than 2 percent a year. A reverse mortgage is a loan, not a change in ownership, so it doesn't reset your assessment. If you've owned your San Jose home for a long time, that low tax base is a big part of why staying put can make sense.

Prop 19 if you move

If you're 55 or older, Prop 19 lets you take that low taxable value with you to a replacement home anywhere in California, up to three times, if you buy within two years. If the new home costs more, the difference is added. You file with the assessor in the county where the new home is. The Santa Clara County Assessor has a Prop 19 flyer if you're moving within the county.

California rules every reverse mortgage borrower should know

The 7-day wait after counseling

Before any HECM, you meet with an independent, HUD-approved counselor. California then makes you wait: a lender can't accept your final, complete reverse mortgage application, or charge you fees, until 7 days after counseling. Read Why do I need to wait 7 days after counseling?

The notice and the worksheet

California requires a notice in large type before counseling, and a worksheet that you and the counselor sign. The loan can't be approved until the lender has the signed worksheet.

No required annuities

California law bars a lender from requiring you to buy an annuity to get a reverse mortgage. On a high-value home, where the dollars are bigger, this is worth remembering.

Property Tax Postponement

California's Property Tax Postponement program doesn't accept a home with a reverse mortgage, and getting one makes any postponed taxes due. If you're in the program, tell me first, so we plan to pay it off at closing.

Insurance

You must keep homeowners insurance on the home. If you've ended up on the California FAIR Plan, that's fine. The lenders we work with accept a FAIR Plan policy paired with a difference-in-conditions policy. On a high-value home, make sure the coverage amount matches what it would cost to rebuild.

Home loans for San Jose buyers and owners

We also help with:

• Buying a home and seeing your buying power before you shop.
• Jumbo loans for higher-priced homes.
• Refinancing.
• Home equity loans and HELOCs.
• 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 Jose clients

1. A conversation by phone or video about your goals.
2. A side-by-side comparison of a HECM and the jumbo programs available for your home.
3. Counseling with an independent, HUD-approved counselor, then California's 7-day wait.
4. Application, appraisal, and signing at home with a mobile notary.

San Jose and Santa Clara County resources

• Sourcewise, Santa Clara County's information and assistance resource for older adults and caregivers: (408) 350-3200
• Santa Clara County Department of Aging and Adult Services: (408) 755-7600
• Santa Clara County Assessor: Prop 19 flyer
• 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. A home worth more than the limit still qualifies. The limit only caps the value used in the calculation.

Is a jumbo reverse mortgage better on an expensive home?

Sometimes. It can provide more money and skips FHA mortgage insurance, but rates are usually higher and the rules are different. I'll run both and show you.

Do jumbo reverse mortgages have a line of credit?

Some do, and many are lump sums. Whether the line grows depends on the program.

Will a reverse mortgage reassess my property taxes?

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

Can I keep my Prop 13 tax base if I move?

If you're 55 or older and meet Prop 19's rules, often yes.

Next step

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

Sources

• HUD Mortgagee Letter 2025-22, HECM Maximum Claim Amount: hud.gov
• HUD, FHA Reverse Mortgage for Seniors (HECM): hud.gov
• 24 CFR Part 206, Home Equity Conversion Mortgage Insurance: ecfr.gov
• California State Board of Equalization, Introduction to Prop 19: boe.ca.gov
• Santa Clara County Assessor, Prop 19 Flyer: sccassessor.org
• California State Controller's Office, Property Tax Postponement FAQ: sco.ca.gov
• California Civil Code section 1923.2: justia.com
• California Civil Code section 1923.5: findlaw.com
• City of Cupertino, Resources for Seniors: cupertino.gov