Reverse mortgages in Kailua
If you own a home in Kailua and are 62 or older, a HECM reverse mortgage can turn part of your equity into cash without a monthly mortgage payment. Whether it makes sense here comes down to a few local facts, starting with who lives here and what homes are worth.
| Measure | Kailua | Hawaii | U.S. |
|---|---|---|---|
| Residents 65 and older | 22.3% | 22.6% | 18.9% |
| Owner-occupied homes | 72.3% | 63% | 65.2% |
| Median home value | $1,353,700 | $839,100 | $332,700 |
| Monthly owner costs, no mortgage | $880 | $697 | $638 |
| Monthly owner costs, with mortgage | $3,948 | $2,904 | $1,963 |
| Median household income | $148,582 | $100,389 | $80,734 |
| Veterans | 3,202 | 87,697 | 16,185,883 |
Monthly owner costs are medians and include taxes, insurance, utilities and any mortgage. The Census reports these up to $4,000.
When the median home is worth more than the HECM limit
The Census median home value in Kailua is $1,353,700, above the 2026 HECM lending limit of $1,249,125. A HECM calculates your proceeds on the lesser of value or that limit, so value above the cap adds nothing to what you can draw.
That does not rule out a HECM. It does mean you should also price a HELOC, a sale, or a private jumbo reverse loan where one is available. Private loans are not FHA insured, and their terms differ, so ask what protections carry over.
Is $3,068 a month the number that matters?
That is about how much less a Kailua owner without a mortgage spends each month than one with a mortgage, going by Census medians of $880 and $3,948.
It is a broad measure, since homes and loans differ, but it shows why removing a required payment can matter more than a lump of cash. Interest still builds on the balance, so the saving is paid for out of your equity.
Home prices around Kailua
FHFA's House Price Index shows values in the Honolulu metro area up 11.1% over the past year and +38.6% over five years. That compares with +38.0% statewide over five years, so this area has moved about in line with Hawaii as a whole.
If your home tracked the index, a value of $1,353,700 today means about $980,000 five years ago. That $380,000 difference is what makes a reverse loan possible for owners who thought they had little to work with.
With prices still climbing, some owners want to lock in access to equity now. A HECM line of credit does not depend on later appraisals, but your balance grows as you draw and interest accrues.
Taxes, insurance and upkeep still come first
A reverse loan removes the mortgage payment, not the cost of owning. In Kailua those remaining costs run about $880 a month at the median, and that is before a new roof.
A HECM financial assessment reviews your credit, your record of paying property charges over the prior 24 months, and residual income. It can require a set-aside of funds to cover those charges.
Veterans in Kailua
Census counts 3,202 veterans in Kailua. The VA does not make reverse mortgages, so the choice is usually a VA cash-out refinance with a payment, or a HECM without one.
If you receive need-based benefits, ask an accredited representative how reverse proceeds held in an account would be treated before you draw them.
Property tax help in Honolulu County
Before you borrow against a Kailua home, see whether a tax program covers the gap. Property tax in Hawaii is set by each county, not the state, so ask the Honolulu County real property office what exemption applies at your age. In Honolulu, the exemption for owners 65 and older has been $160,000, and Bill 4 (2025) proposed raising it to $180,000 for later tax years. See the full Hawaii reverse mortgage guide.
The rules in brief
All borrowers must be 62 or older and live in the home as their principal residence, and you must first meet with a HUD-approved counselor (1-800-569-4287). The loan comes due when the last borrower dies, sells or moves out. Our reverse mortgage guide covers costs, spouses, heirs and how you can receive funds. You can also compare it to a HELOC, or see our full Kailua mortgage page.
More in Hawaii: Kaneohe, Waipahu, Mililani Town, East Honolulu, Pearl City, Ewa Gentry.
Sources: U.S. Census Bureau QuickFacts (American Community Survey 2020-2024, population estimates July 2025). FHFA House Price Index, 2026 Q2. HUD 2026 HECM limit.
Common questions
Can I get a reverse mortgage on my Kailua home?
Many Kailua owners can. The tests are your age (62 or older), your equity, your ability to keep up with taxes and insurance, and whether the property meets FHA standards.
Does the HECM limit matter for a Kailua home?
Yes, but the HECM counts value only up to $1,249,125. With a $1,353,700 median in Kailua, many owners are at or above that cap.
How much have home values risen near Kailua?
FHFA shows Honolulu metro at +11.1% over one year and +38.6% over five years as of the second quarter of 2026.
Who still pays the Honolulu County property tax bill?
You do. On a reverse mortgage you keep paying property taxes, insurance and upkeep. If you do not, the loan can become due.
Bayview Residential is a mortgage broker and is not affiliated with HUD or FHA. A reverse mortgage is a loan that must be repaid, and the balance grows over time. You must keep paying property taxes, insurance and home maintenance, and live in the home as your principal residence. All loans are subject to eligibility and approval. This page is general information and not legal, tax or benefits advice.