Property Tax Postponement or a reverse mortgage?
California will defer property taxes for older homeowners on modest incomes. It is a good program, and it is cheaper than anything I arrange. It also cannot sit on a home that has a reverse mortgage. Choosing between them is a real decision, and choosing in the wrong order can close a door.
Side by side
Left column is the State’s program. Right column is what I arrange. Neither is better in general. One is better for you.
| Property Tax Postponement | Reverse mortgage | |
|---|---|---|
| What it pays | This year’s property tax only | An existing mortgage, delinquent taxes, and cash or a line of credit for anything else |
| Age | 62, or blind or disabled at any age | 62 for the FHA program, 55 for jumbo programs |
| Income limit | Yes. $55,181 of household income for the most recent filing period, reset each year | None, though you must show you can keep up taxes and insurance |
| Equity | At least 40% | Depends on age and home value |
| Cost | 5% simple interest, minimal fees | Closing costs plus compounding interest |
| How often you apply | Every year, October 1 to February 10 | Once |
| What secures it | A state lien on the home | A deed of trust on the home |
| When it is repaid | Sale, move-out, refinance, or death | Sale, permanent move-out, or death of the last borrower |
| Can you have both? | No. The Controller does not postpone taxes on a home with a reverse mortgage. | |
The honest rule of thumb
Start with postponement when…
- The property tax bill is the only thing you cannot cover
- Your household income is under the Controller’s limit
- You have no mortgage payment straining the budget
- You do not expect to need a second-lien reverse later
It costs far less. Apply at the State Controller’s office, not through me. I earn nothing when you do, and it is still the right call.
Look at a reverse mortgage when…
- Your income is over the postponement limit
- Taxes are already delinquent from earlier years
- A mortgage payment is what is actually crowding out the tax bill
- You also need funds for care, repairs, or a reserve
A reverse mortgage can clear the delinquency and the mortgage at one closing. Where the file calls for it, part of the loan is set aside to pay future taxes and insurance for you, so the pattern does not repeat.
In every case the borrower remains responsible for property taxes, homeowner’s insurance, and home maintenance. Failing those obligations can make the loan due and payable. A reverse mortgage does not remove the property tax. It removes the reasons you could not pay it.
Order matters, because one door only swings one way
Postponement first, reverse mortgage later: usually fine
If your situation changes, an FHA-insured or jumbo reverse mortgage can pay off the State’s lien at closing. You have lost nothing by starting with the cheaper tool.
Postponement first, second-lien reverse later: closed
The second-lien reverse mortgage, the one that leaves a low-rate first mortgage in place, does not accept a file with deferred property taxes. If that loan might ever be your answer, decide before you enroll. How the second-lien reverse works →
Reverse mortgage first, postponement later: closed
Once a reverse mortgage is on the home, the Controller will not approve postponement. From then on the property tax is yours to pay each year, or is paid from a set-aside inside the loan.
Program rules and the income limit are set by the California State Controller and change. Confirm current terms at the Controller’s Property Tax Postponement page before you apply. This page is general information, not tax or legal advice.
Postponement questions I hear most
Can I have Property Tax Postponement and a reverse mortgage at the same time?
Which one is cheaper?
Then why would anyone choose the reverse mortgage?
I already have postponed taxes. Can I still get a reverse mortgage?
What happens to the postponed taxes eventually?
Written by Kenneth M. Adler
Broker & Owner, Ideal Financial, Inc. · 30 years in California lending · NMLS #240317 · CA DRE #01216608
Published September 18, 2026 · Last reviewed September 18, 2026
Every page on this site is written and maintained by me: the same person who answers the phone, runs your numbers, and handles your file start to finish. No call center, no hand-offs, no lead-selling. More about how I work →
The rest of the reverse mortgage library
Each page below covers one decision in full, rather than a paragraph of it. Start wherever your question is.
Not sure which way to go?
Fifteen minutes on the phone. If the State’s postponement program is the better answer for you, I will tell you so.
- A call back the same business day, usually within a few hours
- Both options priced honestly, in writing
- No pressure, and no follow-up you didn’t ask for
Fifteen minutes. Real numbers. Then you decide.
Tell me the scenario and I’ll tell you honestly whether this is the right tool. If it isn’t, you’ll leave the call knowing why, and I’ll point you at whatever is.
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