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Capitola homeowners 62+ are sitting on serious equity. Santa Cruz County coastal properties have appreciated significantly over the decades.
A reverse mortgage lets you tap that equity as cash. No monthly mortgage payment required — the loan settles when you sell or leave the home.
62 years old
Minimum Age
$0 required
Monthly Payment
HECM or Jumbo
Loan Type
Substantial equity
Equity Required
HUD-approved required
Counseling
Reverse Mortgages in Capitola
You must be 62 or older. The home must be your primary residence — vacation properties don't qualify.
Your existing mortgage balance must be low enough to pay off at closing. Lenders also require a HUD-approved counseling session before you can proceed.
Local decision guide
Use this guide to connect reverse mortgages eligibility, lender expectations, and local market factors before comparing payment options in Capitola.
Capitola homeowners 62+ are sitting on serious equity. Santa Cruz County coastal properties have appreciated significantly over the decades.
A reverse mortgage lets you tap that equity as cash. No monthly mortgage payment required — the loan settles when you sell or leave the home.
You must be 62 or older. The home must be your primary residence — vacation properties don't qualify.
Most reverse mortgages are HECMs — Home Equity Conversion Mortgages — backed by FHA. A few proprietary jumbo reverse products also exist for higher-value homes.
Not every lender offers jumbo reverse options. We work with wholesale lenders who do, which matters if your Capitola home's value exceeds FHA limits.
The biggest mistake I see: homeowners assume a reverse mortgage means giving up the house. You keep the title. The lender gets repaid when the home sells.
Disbursement options matter more than most people realize. You can take a lump sum, a credit line, monthly payments, or a mix. Pick what fits your actual cash flow needs.
A HELOC gives you a credit line with monthly payments required. A reverse mortgage skips the payments — that's the core difference for retirees on fixed income.
Home equity loans work similarly to HELOCs but with a fixed lump sum. If monthly payments strain your budget, a reverse mortgage is worth a serious look.
Capitola sits in one of California's more expensive coastal counties. Long-term homeowners here often have equity far exceeding what they'd find inland.
That equity makes reverse mortgages especially viable. Higher home values mean more available proceeds — and potentially access to jumbo reverse products beyond standard HECM limits.
Yes. You keep the title. The lender is repaid when you sell, move out, or pass away.
You can't be forced out while the home is your primary residence. The loan stays in place as long as you live there and maintain the property.
Yes. They can pay off the reverse mortgage balance and retain ownership. They can also sell the home and keep any remaining equity.
Standard HECMs have FHA loan limits. If your home value exceeds those limits, jumbo reverse mortgage products may cover the gap.
You must keep the home as your primary residence, pay property taxes, and maintain homeowners insurance. Failing these can trigger loan repayment.
Generally no. Reverse mortgage proceeds are loan advances, not income. Consult a financial advisor about your specific benefit situation.