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Reverse Mortgage

Reverse Mortgages in Santa Clara County — Guidance for Homeowners and Their Families

30+ years helping Bay Area homeowners understand their options — including families researching a reverse mortgage on behalf of an aging parent.

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Is a Reverse Mortgage Right for You (or Your Parent)?

For homeowners 62+

A reverse mortgage lets you tap your home equity without taking on a monthly mortgage payment — while staying in the home you love. Funds are commonly used to supplement retirement income, cover medical or care costs, or pay off an existing mortgage so that monthly payment disappears.

You keep title to your home, and the loan doesn't come due until you sell, move out permanently, or pass away.

For adult children researching for a parent

If you're looking into this on behalf of a parent, you're doing exactly the right thing — and you're not alone. This page covers what to know before bringing it up, how the process works when family is involved, and what protections exist.

Good questions to ask together: Does my parent plan to stay in the home long-term? Can they comfortably keep up with property taxes, insurance, and upkeep? What do the heirs want to happen to the home? I'm happy to sit down with both of you and walk through the real numbers — no pressure either way.

What Is a Reverse Mortgage (HECM), in Plain English

As a reverse mortgage specialist, this is where I start every conversation — because most of what's out there is either jargon or sales pitch. Here's the plain version:

  • It's a loan against your home equity, insured by the FHA. The most common type is the Home Equity Conversion Mortgage (HECM).
  • No monthly mortgage payments are required — but the homeowner must keep paying property taxes, homeowner's insurance, and any HOA dues, and maintain the home.
  • Funds can be taken as a lump sum, monthly payments, a line of credit, or a combination.
  • The loan is non-recourse — neither the homeowner nor their heirs will ever owe more than the home is worth at repayment.
  • The loan becomes due when the homeowner sells, moves out permanently, or passes away — heirs can pay it off, sell the home, or (if there's no equity left) walk away without personal liability.
  • The homeowner retains title to the home throughout — the lender does not own the home.

2026 Reverse Mortgage Numbers (Santa Clara County)

The 2026 HECM national lending limit is $1,249,125 — the FHA maximum claim amount, effective for case numbers assigned on or after January 1, 2026 (up from $1,209,750 in 2025).

Important: that's the cap for the FHA-insured HECM program specifically — not a hard ceiling on reverse mortgages overall. And actual loan proceeds depend on the borrower's age, current interest rates, and the home's value — not just the limit. The only reliable way to know what you'd qualify for is to run your specific numbers.

When Home Value Exceeds the FHA Limit — Proprietary (Jumbo) Reverse Mortgages

This matters a lot in Santa Clara County, where many homeowners have equity well above the $1,249,125 HECM cap. The FHA/HECM limit is not the ceiling on what's available — it's just the ceiling on the FHA-insured program.

Proprietary reverse mortgages (also called "jumbo reverse mortgages") are privately insured rather than FHA-backed, and they're designed specifically for higher-value homes that exceed the FHA limit. Both fixed and adjustable-rate programs exist, and options vary by lender — which is exactly the kind of thing worth discussing directly rather than guessing from a general article online.

If your home's value is above the FHA reverse mortgage limit, that doesn't mean you're out of options — it usually means we look at a different type of program instead. Every homeowner's situation is different, and the right fit depends on your specific numbers.

Curious what's available for a home like yours? Let's talk through your options — book a free consultation →

Keeping Your Low Mortgage Rate — Reverse Mortgage 2nds

A "reverse mortgage 2nd" (also called a second-lien reverse mortgage) is a newer category of proprietary reverse mortgage that sits behind — not instead of — a homeowner's existing first mortgage.

The existing first mortgage stays exactly as it is: same rate, same term, same monthly payment.

The reverse 2nd itself typically has no required monthly payment, similar to a standard reverse mortgage, though the homeowner still needs to keep up with the first mortgage payment and ongoing property charges (taxes, insurance, HOA).

This can be a good fit for someone who has significant equity but doesn't want to refinance away a historically low first-mortgage rate just to access cash.

If the idea of a reverse mortgage sounds interesting but you don't want to touch your current mortgage rate, this may be worth a conversation — it's a newer option, and not every homeowner has heard of it yet.

Not sure if this applies to your situation? Let's talk it through

Basic Eligibility

  • Age 62 or older. The youngest borrower or co-borrower on title must be 62+.
  • Primary residence. The home must be the borrower's primary residence.
  • Sufficient home equity. An existing mortgage balance, if any, is typically paid off at closing using the loan proceeds.
  • Ongoing obligations. The borrower must be able to keep up with property taxes, insurance, HOA dues, and home maintenance.
  • HUD-approved counseling. An independent counseling session is required before applying. This is federally mandated — not optional — and it's a genuine consumer protection: an uninvolved third party makes sure the homeowner understands exactly how the loan works before anything is signed.

Common Questions From Adult Children

Yes. Title stays in your parent's name, just like with any other mortgage. The lender does not own the home, and your parent can't be forced out as long as they live in it as their primary residence and keep up with taxes, insurance, and maintenance.

The loan becomes due. As heirs, you get the option to pay it off (often by selling the home) and keep any remaining equity, refinance it into your own name if you want to keep the home, or — if the home is worth less than what's owed — walk away with no personal liability. HECMs are non-recourse, so the debt can never exceed the home's value.

Absolutely. With the homeowner's consent, family members can attend the HUD counseling session, sit in on consultations, and review the numbers together. I encourage it — decisions like this go better when everyone at the table understands the same facts.

No. With a reverse mortgage, your parent keeps ownership and continues living in the home — no sale, no move. Selling means giving up the home now; a reverse mortgage lets them access part of its value while staying put.

Fair question — reverse mortgages had a rough reputation decades ago. Today's HECM program is insured by the FHA, requires an independent HUD-approved counseling session before anyone can apply, and is non-recourse by law. I'm a licensed professional (NMLS #235072), and you can verify any loan officer's license for free at NMLS Consumer Access. If anything about an offer ever feels rushed or vague, that's a red flag — walk away.

No — and this is common in Santa Clara County. The $1,249,125 limit applies only to the FHA-insured HECM program. Homes above that value are often candidates for proprietary (jumbo) reverse mortgages instead. See the section above, or book a consultation and we'll look at the specifics together.

Not necessarily — a reverse mortgage 2nd is designed specifically to preserve an existing first mortgage rather than replace it. See the section above for how that works.

Why Work With Chris

  • 30+ years of experience in Bay Area real estate and mortgage — I've guided hundreds of families through decisions exactly like this one.
  • Dual-licensed as a mortgage broker and a California real estate broker (NMLS #235072 · CA DRE #01131369) — one advisor who understands both the loan and the home.
  • Personal, direct guidance — you work with me, not a call center.
  • Family welcome — I'm glad to walk through the numbers with both the homeowner and their adult children, together or separately.

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Have questions? Let's talk.

This is a big decision, and it deserves a real conversation — not a sales pitch. There's no pressure and no obligation; if a reverse mortgage isn't the right fit, I'll tell you that too.

Book a Free Consultation Call (408) 687-6109