What is the jumbo loan limit in Kern County for 2026?

The conforming loan limit in Kern County for 2026 is $766,550 for a single-family home. Any loan amount above this requires jumbo financing. Unlike coastal California counties such as LA and San Francisco, Kern County does not qualify for high-balance conforming limits.

Can I get a jumbo loan with less than 20% down?

Some jumbo lenders offer 10% down programs for well-qualified borrowers with credit scores above 720 and strong liquid assets. These programs typically require PMI or carry a rate premium. The most competitive jumbo pricing requires 20% down. Dan has access to wholesale jumbo lenders with 10% down options.

Are jumbo loan rates higher than conventional in 2026?

The rate premium for jumbo loans has been relatively narrow in 2026 for well-qualified borrowers — often 0.125–0.375% above conforming rates. In prior years, the spread was larger. For borrowers near the conforming limit, it's worth evaluating both a straight jumbo and a piggyback structure (conforming first plus second lien) to find the lower blended rate.

What types of income can be used to qualify for a mortgage?

Lenders accept W-2 wages, self-employment income (with 2-year history), overtime and bonus income (with 2-year history), rental income (75% of gross rents), Social Security and disability income, pension and retirement income, alimony and child support (if court-ordered for 3+ years), and trust income. Non-traditional income types like IHSS, gig economy, and royalties require specific documentation.

Can Social Security income qualify for a mortgage?

Yes. Social Security income is fully countable for mortgage qualification. Because it is non-taxable for most recipients, lenders can gross it up by 25% when calculating qualifying income. For example, $2,000/month in Social Security qualifies as $2,500/month of effective income. Award letters and recent bank statements document the income.

How Reverse Mortgages Work: Access Home Equity Without Monthly Payments

A reverse mortgage lets homeowners 62 and older convert home equity into cash, without selling the home or making monthly mortgage payments. The loan balance grows over time as interest accrues, and the loan is repaid when the borrower sells the home, permanently moves out, or passes away.

For the right borrower in the right situation, it's a powerful tool. For others, the costs and trade-offs don't make sense. Here's what you need to know to evaluate it clearly.

How Reverse Mortgages Actually Work

The most common reverse mortgage is the HECM, Home Equity Conversion Mortgage, which is FHA-insured. The amount you can borrow (called the principal limit) is based on your age, your home's appraised value, and current interest rates. Older borrowers with higher-value homes and lower rates qualify for larger amounts.

You can receive the funds as a lump sum, monthly payments, a line of credit, or a combination. No monthly payment is required. Interest and mortgage insurance premiums accrue monthly and are added to your loan balance.

The loan becomes due when the last borrower permanently vacates the property. At that point, the home can be sold to repay the loan, or heirs can pay off the loan and keep the home. If the loan balance exceeds the home's value at that time, FHA insurance covers the difference, neither you nor your heirs owe more than the home is worth.

Who Qualifies

The borrower (and any co-borrower) must be at least 62 years old and the home must be your primary residence. You must have sufficient equity, most borrowers have paid off their mortgage or carry only a small remaining balance. If you have an existing mortgage, the reverse mortgage proceeds can pay it off at closing.

You must also complete mandatory HUD-approved counseling before applying. This is not a formality, it's a substantive session where a certified counselor explains the product, alternatives, and long-term implications.

Costs: What's Often Understated

Reverse mortgages have significant upfront costs. Origination fees can run up to $6,000. FHA mortgage insurance premiums are 2% of the appraised value (or lending limit, whichever is lower) upfront, plus 0.5% annually on the outstanding balance. Closing costs for title, escrow, and appraisal are similar to a regular mortgage.

On a $500,000 home, upfront costs can easily total $12,000–$16,000. These are typically rolled into the loan, meaning they begin accruing interest immediately.

Ongoing Obligations

Even without monthly payments, reverse mortgage borrowers must continue paying property taxes, homeowner's insurance, and maintaining the property. Failure to meet these obligations can result in a default and foreclosure, a common pitfall for borrowers on fixed incomes who assume "no payments" means "no obligations."

The Line of Credit Option Is Often Underappreciated

The reverse mortgage line of credit (LOC) has a unique feature: the unused portion grows over time at the same rate as the loan's interest rate. This means a $200,000 line of credit today may grow to $300,000 or more over 10 years, an option for future borrowing that isn't available from any other product.

Common Mistake: Dismissing It Without Understanding the Alternatives

Many homeowners hear "reverse mortgage" and dismiss it based on outdated information or stigma. The product has been substantially reformed since the 1990s. The right comparison isn't "is this perfect?" but "how does it compare to selling the home, downsizing, or drawing down other retirement assets?" In that comparison, it can be the right choice for many homeowners.

Bottom Line

Reverse mortgages are a legitimate, well-regulated financial tool for homeowners 62+ who want to access equity without selling. The costs are real and should be modeled carefully. The ongoing tax and insurance obligations must be maintained. But for the right borrower, particularly someone who plans to stay in the home long-term and needs to supplement fixed income, the ability to age in place with financial flexibility is genuinely valuable.