Reverse mortgage in San Diego, CA
San Diego is one of the most equity-rich real estate markets in the country. Homeowners who purchased in San Diego 15 to 30 years ago are often sitting on $500,000 to $1,000,000 or more in home equity, with limited ways to access it without selling or taking on a monthly payment. A reverse mortgage converts that equity into cash while letting you stay in your home with no monthly mortgage payment required. GM Funding is a licensed mortgage broker and NRMLA member serving San Diego homeowners 62 and older.
A reverse mortgage in San Diego allows eligible homeowners 62 or older to convert home equity into cash with no monthly mortgage payment required. The 2026 HECM lending limit is $1,249,125 for San Diego County. GM Funding (DRE #02103128) specializes in reverse mortgages for San Diego homeowners. Call (800) 345-2044 to find out how much you can access.
How a reverse mortgage works in San Diego
With a reverse mortgage, the lender pays you instead of you paying the lender. You receive funds from your home equity as a lump sum, monthly payments, or a line of credit, and the loan balance grows over time as interest accrues. The loan becomes due when you sell, move out permanently, or pass away.
Most reverse mortgages are Home Equity Conversion Mortgages (HECMs), which are insured by the Federal Housing Administration. FHA insurance provides an important protection: you can never owe more than your home is worth when the loan comes due, even if the loan balance has grown beyond the home’s value. Neither you nor your heirs will ever be personally liable for the difference.
You choose how to receive your funds:
- Lump sum: All available funds at closing, at a fixed interest rate
- Monthly payments: Steady income for a set term or for as long as you live in the home
- Line of credit: Draw funds as needed, with the unused portion growing over time
- Combination: Many borrowers take a partial lump sum and keep the rest as a line of credit
How much can you get with a reverse mortgage in San Diego?
The 2026 HECM lending limit for San Diego County is $1,249,125. Your actual loan proceeds depend on your age, current interest rates, and your home’s appraised value. The older you are and the more your home is worth, the more you can access.
Here is an approximate breakdown of available funds at different ages, assuming a San Diego home valued at $900,000 or higher and a 5.5% expected rate:
| Your Age | Approximate % Available | Est. Available Funds (on $900,000 home) |
|---|---|---|
| 62 | ~37% | ~$333,000 |
| 67 | ~42% | ~$378,000 |
| 72 | ~48% | ~$432,000 |
| 77 | ~54% | ~$486,000 |
| 82 | ~60% | ~$540,000 |
| 87 | ~66% | ~$594,000 |
These are estimates. Your actual proceeds depend on current interest rates and your specific financial situation. If you have an existing mortgage, it gets paid off first from the reverse mortgage proceeds — the remaining funds are yours to use however you choose.
For San Diego homeowners with properties valued above $1,249,125, proprietary jumbo reverse mortgages are available through some lenders and can cover homes valued up to $4 million. These are not FHA-insured and have different terms. Contact GM Funding to discuss which option fits your situation.
Who qualifies for a reverse mortgage in San Diego?
To qualify for a HECM reverse mortgage in San Diego, you must be at least 62 years old, live in the home as your primary residence, and have significant equity — typically 50% or more. There is no minimum credit score, but lenders review your financial history to confirm you can maintain the home and pay property taxes and insurance.
Full qualification requirements:
- Age: At least 62. If married, the younger spouse’s age determines the loan amount. Spouses under 62 can be listed as eligible non-borrowing spouses.
- Equity: Most lenders require at least 50% equity. If you have an existing mortgage, the reverse mortgage pays it off at closing.
- Primary residence: You must live in the home for the majority of the year. Vacation homes and investment properties do not qualify.
- HUD counseling: Required before any lender can process your application. The session covers how the loan works, costs, and alternatives. GM Funding can refer you to approved counselors in San Diego.
- Financial assessment: Lenders review income, credit history, and monthly expenses to confirm you can cover property taxes, insurance, and maintenance. If there are concerns, a Life Expectancy Set-Aside (LESA) may be required.
- No delinquent federal debt: Federal tax debt or defaulted federal student loans must be resolved before qualifying.
Reverse mortgage costs in San Diego
Reverse mortgage closing costs include an origination fee, FHA mortgage insurance premiums, appraisal, and standard closing costs. Most costs can be financed into the loan so you pay nothing out of pocket at closing.
| Cost | Amount |
|---|---|
| Origination fee | Up to $6,000 (based on home value) |
| Upfront FHA mortgage insurance | 2% of home value (up to $1,249,125) |
| Ongoing FHA mortgage insurance | 0.5% of loan balance per year |
| Appraisal fee | $500 to $1,000 |
| Closing costs (title, escrow, etc.) | $2,000 to $5,000 |
| HUD counseling | $125 (set by HUD) |
On a $900,000 San Diego home, total upfront costs typically run $25,000 to $35,000. Most borrowers finance these into the loan. The ongoing FHA insurance of 0.5% annually is added to the loan balance each year.
Where reverse mortgages make the most sense in San Diego
Reverse mortgages work best for San Diego homeowners who purchased decades ago, have substantial equity, want to stay in their homes, and need additional income or funds in retirement. The combination of strong long-term appreciation and high current home values makes San Diego one of the strongest reverse mortgage markets in the country.
Coastal and established neighborhoods
Homeowners in La Jolla, Del Mar, Coronado, Point Loma, Ocean Beach, and other coastal communities often have homes valued well above $1,000,000. Many purchased in the 1980s and 1990s and have little or no mortgage remaining. A reverse mortgage can unlock $400,000 to $600,000 or more depending on age and home value.
Inland and suburban neighborhoods
Areas like Chula Vista, El Cajon, Santee, Spring Valley, La Mesa, and Poway have seen values rise substantially over the past two decades. Homes purchased for $200,000 to $350,000 in the early 2000s are now worth $700,000 to $950,000. Many of these homeowners are on fixed incomes and sitting on equity they cannot access without selling.
Military veterans in San Diego
San Diego County has one of the largest veteran populations in the United States, with over 200,000 veterans calling the county home. Veterans who owned homes near military installations and have since retired often have significant equity built up. A reverse mortgage can supplement military retirement income and VA benefits without affecting those payments.
What to watch out for with a reverse mortgage in San Diego
The loan balance grows over time. Because you are not making payments, interest accrues monthly. On a $400,000 reverse mortgage at 6% interest, the balance grows to approximately $540,000 after five years. Your heirs will inherit less equity as a result.
Homeowners insurance in San Diego has become harder to obtain in some areas. Wildfire risk in inland and hillside communities has caused some insurers to exit the market or dramatically increase premiums. If you cannot maintain homeowners insurance, the loan could go into default. Verify insurance availability and cost before proceeding.
You must continue paying property taxes. San Diego County property taxes on a $900,000 home run approximately $9,000 to $11,000 per year. Falling behind on property taxes can trigger default on a reverse mortgage. Make sure your income reliably covers this ongoing obligation.
Moving out triggers repayment. If you move to assisted living or another primary residence for more than 12 consecutive months, the loan becomes due. Consider your health outlook and potential care needs before committing.
Ready to find out how much equity you can access in San Diego?
GM Funding is an NRMLA member with dedicated reverse mortgage expertise. Keith Murphy (NMLS #4879) can review your home value, age, existing mortgage balance, and financial picture to give you a preliminary estimate of how much you could access — and whether a reverse mortgage is the right fit for your situation.
Call (800) 345-2044, text (949) 385-3007, or get in touch online for a free reverse mortgage consultation.
Get a free reverse mortgage consultation
Frequently asked questions
Do I still own my home with a reverse mortgage in San Diego?
Yes. You retain full ownership and title to your home. The reverse mortgage is a lien against the property, the same as a traditional mortgage. You can sell the home at any time, and you continue to live there as long as you meet the loan obligations — paying property taxes, homeowners insurance, and maintaining the property.
Can my spouse stay in the home if I pass away?
If your spouse is a co-borrower on the reverse mortgage, they can remain in the home indefinitely under the same terms. If your spouse is listed as a non-borrowing spouse, HUD protections allow them to stay in the home after your passing, though they cannot receive additional draws from the loan.
Will a reverse mortgage affect my Social Security or Medicare?
Reverse mortgage proceeds are not considered income and do not affect Social Security or Medicare benefits. However, if you receive Medicaid or Supplemental Security Income (SSI), large lump sum proceeds could affect eligibility if they push your liquid assets above program limits. Consult with a benefits counselor before proceeding if you receive these benefits.
What happens to my home when I pass away?
When the last borrower passes away or permanently leaves the home, the loan becomes due. Your heirs typically have 6 to 12 months to either repay the loan balance and keep the home, or sell the home and use the proceeds to repay the loan. If the home has appreciated, there may be equity remaining for your heirs. If not, FHA insurance ensures they never owe more than the home is worth.
Is a reverse mortgage right for me in San Diego?
A reverse mortgage works best if you plan to stay in your San Diego home long-term, have significant equity, and need additional income or funds in retirement. It is not ideal if you plan to move within a few years or want to leave the full value of the home to your heirs. Talk to a GM Funding loan officer to discuss whether it fits your specific financial goals.