California Reverse Mortgage Calculator
Estimate how much tax-free cash your California home could unlock — HECM or jumbo for high-value properties, with your Prop 13 tax basis untouched.
Nate Jones · NMLS #304056 · New American Funding
From Nate · 28 sec
California homeowner, 62 or older?
Quick context from Nate before you run your numbers.
California homeowners 62 and older (55+ on some jumbo programs) can convert home equity into tax-free cash with no monthly mortgage payment. The FHA HECM calculates proceeds on the lesser of home value or the 2026 lending limit of $1,249,125 — and because many California homes exceed that limit, jumbo (proprietary) reverse mortgages up to $4M+ are more relevant in California than in any other state. California specifics: a reverse mortgage does not trigger Prop 13 reassessment; Prop 19 base-year transfers can be combined with HECM for Purchase when relocating; homes vested in revocable living trusts generally qualify; and state law imposes extra disclosures and a cooling-off period after counseling. Nate Jones (NMLS #304056) serves all of California through New American Funding — free estimate, no credit pull.
Your Numbers
Enter $0 if your home is paid off
Must be 62 or older to qualify
Current reverse mortgage rates typically range 6.5-8.5%
Results
Estimated Available Cash
$220,000
Tax-free. No monthly payments required.
Your Home's Principal Limit
$220,000
Maximum FHA will lend based on your age and home value
Equity You Keep
$280,000
Remaining equity stays in your estate
Monthly Payment Required
$0
You never make a mortgage payment. Loan repaid when home is sold.
What Could You Do With This Equity?
Eliminate Monthly Payments
Use $220,000 to pay off your existing mortgage entirely — eliminating your monthly payment and freeing up $0 every month.
Monthly Income Stream
Receive approximately $1,833 per month for 10 years as a steady tax-free income stream.
Line of Credit
Keep $220,000as a growing line of credit — accessible when you need it, growing at the loan interest rate when you don't.
These are estimates based on simplified HECM guidelines. Actual amounts depend on current interest rates, your specific property, and FHA appraisal. Nate will run your exact numbers — free, no credit pull.
Why California Is Jumbo Reverse Mortgage Territory
The FHA HECM only counts home value up to $1,249,125 — and in much of coastal California, that's below the median house. In Los Angeles' westside, the Bay Area, Orange County, and San Diego's coastal markets, a $2M home on a standard HECM is calculated as if it were worth $1.15M — leaving roughly half the equity out of the formula. Jumbo (proprietary) reverse mortgages fix exactly this: they count full value up to $4M+, skip FHA's 2% upfront mortgage insurance premium, and some programs start at age 55. Inland markets — Sacramento, Riverside, Fresno, Bakersfield — mostly sit comfortably under the limit, where the standard HECM and its growing line of credit usually win. The calculator above runs the HECM math; the jumbo calculator covers the rest.
Prop 13, Prop 19, and Living Trusts
Three California-specific facts come up on nearly every file. First, a reverse mortgage does not trigger Prop 13 reassessment — your capped assessed value, often a fraction of market value after decades of ownership, stays put, and that low tax bill actually helps you pass the financial assessment. Second, Prop 19 lets homeowners 55+ carry that low tax basis to a replacement home anywhere in the state — and pairing a Prop 19 transfer with a HECM for Purchase means relocating with no monthly mortgage payment and no property-tax reset. Third, homes vested in revocable living trusts — the default California estate plan — generally qualify for HECMs after a trust review in underwriting. California also layers on extra consumer protections, including a cooling-off period after mandatory HUD counseling before any fees can be charged.
Related Calculators & Guides
California Reverse Mortgage FAQ
Common Questions
How much can my California home unlock?
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HECM or jumbo — which fits my home value?
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