There was once a time when you could find more than ten different California reverse mortgages available for “jumbo” loan amounts.  Recent economic downturns including a decrease in home values and several bank failures have brought that number down to three.  In California a jumbo loan is needed for loans which exceed between $200,000 and $280,000.  The loan limits for FHA program loans are usually much lower.  When FHA assesses the value of a home in most counties in California the highest value they will give to it is around $326,790, no matter what its actual worth. 

Many of the homes owned by seniors in California could qualify for a jumbo mortgage.  The options available to those seniors are steadily declining.  Many banks no longer offer them in California, or offer only small loans.   Many banks have been taken over by federal regulators which have changed the types of products they are able to offer. 

Some of the largest banks in California are offering them.  Many banks in California no longer have the funds needed to offer jumbo  mortgages to those living in the state.  This has made it much more difficult for consumers to borrow money at a low interest rate for their high valued properties. 

The good news is that there are still some jumbo programs that seniors in California can take advantage of.  They offer these loans at competitive rates and a variety of payment options including a line of credit, lump sum payment, and monthly payouts for a specific period of time.  

When choosing a bank for your  mortgage make sure you choose a bank which has a strong reputation for sound business practices.  You want to make sure you are doing business with an organization that is going to be around for a while.