HECM for Purchase in California
Buy in CA's high-value market — with no monthly payment
JP Dauber, NMLS# 386298
Reverse Mortgage Specialist
Last updated March 15, 2026
Why California's high values work in your favor
People assume California's expensive housing market makes HECM for Purchase impractical. The opposite is true. The federal lending limit of $1,249,125 means most California homes — even in premium markets — can take full advantage of the program.
If you own a $1.2 million home in the Bay Area and want to buy a $900,000 single-story home in San Diego, you have massive equity to work with. HECM for Purchase lets you keep more of that equity liquid instead of locking it all in the new home.
California market estimates
Down payment estimates assume age 72, ~50% at typical expected rates. Use the calculator for personalized numbers.
Prop 19: Transfer your property tax base
California's Proposition 19 is a game-changer for HECM for Purchase buyers. If you're 55 or older, you may be able to transfer your current home's Prop 13 property tax base to a new home — anywhere in California.
If you've owned your current home for 20+ years, your assessed value may be far below market value. Without Prop 19, buying a new home at current market price would mean a huge jump in property taxes. With Prop 19, you can bring your low tax base with you. This can save thousands per year in property taxes on the new home.
There are rules and limitations — the new home's value, the number of times you can use the transfer, and the adjustment for price differences. Consult a California tax advisor for your specific situation.
Popular California scenarios
Coastal to inland
Sell a $1.1M Bay Area home, buy a $600K home in Sacramento or Palm Springs. Keep $200K+ in cash, no monthly payment, and potentially transfer your tax base.
Downsizing in place
Sell the family home in a pricey neighborhood, buy a smaller condo or single-story home nearby. Keep the community connections and the cash difference.
Retirement community buyer
55+ communities in Palm Springs, parts of San Diego, and the Central Valley offer more affordable housing with resort-style amenities.
Closer to the grandkids
California is a big state. Moving from NorCal to SoCal (or vice versa) to be near family is a common reason for a HECM Purchase.
High values, high opportunity
California's high home values, Prop 19 property tax transfers, and the $1,249,125 FHA lending limit create a powerful combination for HECM for Purchase buyers. You can buy the right home for your retirement — without depleting your savings or taking on monthly payments.
Ready to see the numbers? Try the calculator or reach out — I'm licensed in California and can walk you through your options.