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Use Your Home Equity Without Selling or Moving
A Home Equity Conversion Mortgage lets qualified homeowners 62 and older convert part of their equity into tax-free funds, with no required monthly mortgage payment. The home stays in your name. This is Jesse Gonzalez's specialty, and he teaches it in plain English.
A HECM is an FHA-insured reverse mortgage that lets homeowners 62+ access home equity as a lump sum, monthly payments, or a line of credit, with no required monthly mortgage payment as long as you keep up property taxes, insurance, and upkeep. North Bay Capital shops the program, walks you through HUD-required counseling, and helps you decide whether it actually fits.
Programs we broker
The options under reverse mortgage — and the right fit for each.
HECM Standard (Home Equity Conversion Mortgage)
FHA-insured reverse mortgage for homeowners 62 and older.
The HECM Standard is the original, FHA-insured reverse mortgage and the program most people picture when they hear the term. If you're 62 or older and have substantial equity in your primary residence, a HECM lets you convert part of that equity into tax-free funds without making a required monthly mortgage payment. You can take the proceeds as a lump sum, a line of credit, monthly tenure or term payments, or a combination — and the line-of-credit option has a growth feature most borrowers don't realize exists until I walk them through it.
You still own the home and stay on title. The loan becomes due when the last borrower permanently leaves the home, and as long as you keep up property taxes, homeowners insurance, and basic upkeep, the loan rides. HUD requires independent counseling before you can apply, which I think is a good thing — it forces an honest conversation about whether the program actually fits.
- Eliminate an existing mortgage payment in retirement
- Build a standby line of credit that grows over time
- Cover in-home care, medical costs, or home modifications
- Supplement Social Security and retirement-account income
HECM for Purchase (H4P)
Buy your next home and finance part of it with a reverse mortgage in a single transaction.
HECM for Purchase, often called H4P, lets a buyer 62 or older purchase a primary residence and fund a meaningful share of the price with a reverse mortgage — all in one closing. You bring a down payment from your own funds (commonly from the sale of a prior home), and the HECM covers the rest with no required monthly mortgage payment for as long as you live there.
This is the program I use most often for clients right-sizing in retirement: downsizing to a single-story home, moving closer to family, or relocating within California. It avoids the two-step trap of buying with cash and then taking out a separate reverse mortgage later, and it preserves cash that would otherwise be locked into the new home.
- Downsize to a more manageable home without taking on a payment
- Relocate closer to children or grandchildren
- Move into a single-story or 55+ community
- Preserve liquid retirement savings while still buying
HECM Refinance (HECM-to-HECM)
Refinance an existing reverse mortgage when the numbers actually justify it.
A HECM-to-HECM refinance replaces an existing reverse mortgage with a new one. It can make sense when your home has appreciated significantly since the original loan, when current rates would unlock more proceeds, or when you want to add a spouse to the loan who wasn't on the original. There's a HUD-required benefit test that the new loan has to pass before it's even allowed — that's a guardrail I'm a fan of.
I'll tell you straight: this isn't always the right move. Closing costs and the upfront FHA mortgage insurance premium are real. But when a client's home value has jumped and the original HECM was written years ago at a lower lending limit, the additional available proceeds can be substantial. We run the math both ways before anyone signs anything.
- Tap additional equity after major home appreciation
- Add a younger spouse to the loan for long-term protection
- Restructure proceeds (e.g., move from lump sum to line of credit)
- Take advantage of a higher FHA lending limit than when you originated
Proprietary Jumbo Reverse Mortgage
Private reverse mortgage options for high-value homes above the FHA HECM limit.
The FHA HECM caps the home value it considers at the federal lending limit — approximately $1,249,125 for 2026 (verify the current figure for your scenario). For homeowners whose property is worth well beyond that — common across Sonoma County, Marin, and the broader Bay Area — proprietary jumbo reverse mortgages from private lenders can unlock meaningfully more of the equity in a high-value home.
These are not FHA-insured, so the rules, fees, and structures vary by lender. Some allow borrowers as young as 55, some lend on condos that wouldn't qualify for FHA, and a few offer fixed-rate lump sums up to several million dollars. I shop multiple proprietary programs and compare them honestly against the HECM — sometimes the FHA loan still wins even on a high-value home, and I'll say so.
- Access equity in a $2M+ home that's capped under HECM
- Use a reverse mortgage at 55–61, below the HECM age floor
- Skip FHA upfront mortgage insurance premium on a high-balance loan
- Qualify a non-FHA-approved condo for a reverse mortgage
Calculators for this loan
What people ask before they apply
Do I still own my home with a reverse mortgage?
Yes. With a HECM, your name stays on the title and you remain the homeowner, just as you would with a traditional mortgage. The lender places a lien to secure the loan, but you do not sign the home over to anyone. You can sell at any time, and any remaining equity after the loan is repaid belongs to you or your heirs.
Do I have to make monthly payments?
There is no required monthly mortgage payment on a HECM. You do, however, remain responsible for property taxes, homeowners insurance, any HOA dues, and keeping the home in good repair. Falling behind on those obligations can put the loan in default, so it is important to budget for them. You may make voluntary payments toward the balance if you choose.
Is the money I receive taxable?
Reverse mortgage proceeds are generally treated as loan advances, not income, so they are typically not taxable and usually do not affect Social Security or Medicare. They can affect need-based programs like Medicaid or SSI depending on how funds are held. We are not tax advisors, so confirm your specific situation with a tax professional or benefits counselor.
What happens to the loan when I pass away or move out?
The loan becomes due when the last borrower sells the home, moves out permanently, or passes away. Heirs generally have the option to repay the balance and keep the home, sell it and keep any remaining equity, or hand it back to the lender. Because a HECM is non-recourse, neither you nor your heirs will ever owe more than the home is worth at that time.
Why is counseling required before I can apply?
HUD requires every HECM borrower to complete a session with an independent, HUD-approved counselor before applying. The session covers how the loan works, the costs involved, and alternatives you might consider. It is a consumer protection, designed to make sure the decision is fully informed and is never made under pressure. Jesse can point you to approved counselors.
Can I lose my home with a reverse mortgage?
You can stay in the home as long as it remains your primary residence and you keep up property taxes, insurance, and required maintenance. The most common reasons a HECM goes into default are unpaid taxes or insurance, so staying current on those is essential. As long as those obligations are met, the loan does not come due while you live there.
How much can I actually borrow?
The amount available depends on the age of the youngest borrower, current interest rates, and your home's value up to the FHA lending limit, which is approximately $1,249,125 for 2026 (verify for your scenario). Older borrowers generally qualify for a larger percentage of equity. The simplest way to get a real number is to call North Bay Capital and run your specifics.
Is a reverse mortgage right for everyone?
No, and that is exactly why Jesse runs education seminars on it. A HECM can be a strong tool for the right homeowner, but it is not free money and it does reduce the equity you leave behind. For some families, downsizing, a HELOC, or simply staying put makes more sense. North Bay Capital will walk through the trade-offs and tell you honestly if it does not fit.
Jesse Gonzalez, President & Founder
NMLS #278103 · CA DRE #01855372 · Last reviewed June 24, 2026
Have an honest conversation about whether a HECM fits
Jesse Gonzalez specializes in reverse mortgages and teaches public seminars on how they work. If you are 62 or older and curious whether a HECM, HECM for Purchase, or jumbo reverse makes sense for you, call North Bay Capital at 707-595-5393 or email jesse@northbaycap.com. No pressure, no jargon, just a clear answer.