For long-time California homeowners, the thought of moving is often blocked by two major hurdles: the fear of losing a low Prop 13 property tax base, and the inability or unwillingness to take on a new monthly mortgage payment.

This guide explains the intersection of Proposition 19 and the Home Equity Conversion Mortgage (HECM) for Purchase. While neither is right for everyone, understanding how they might work together can unlock new options for your next home.

What this guide details:
– Prop 19 Basics: How owners 55+ can potentially transfer their existing tax base to a new home (up to two times).
– HECM for Purchase: How this FHA reverse mortgage allows you to use the equity from your sale to buy a new primary residence without a required monthly payment.
– The Synergy: A conceptual look at how a lower tax bill (from Prop 19) combined with no monthly mortgage payment (from HECM) can radically change your cash flow and long-term security.
– Crucial Compliance: Strong reminders that this requires expert advice from a tax professional (for Prop 19) and an FHA-approved lender (for HECM).

This is advanced strategy. Use this PDF to frame the conversation before consulting your tax advisor and lender.