An Oregon guide for homeowners 62 and older
Property tax deferral or a reverse mortgage?
Every October the tax statements arrive, and every October I hear the same worry: the bill keeps rising and the income does not. Oregon offers two very different tools. They do not work together, so the order of the decision matters more than almost anything else.
The short answer
If taxes are the only problem, look at deferral first.
Oregon's Senior and Disabled Property Tax Deferral Program pays your county property taxes for you and places a lien on the home, to be repaid when the home is sold or ownership changes. It charges simple interest and has no closing costs. For a homeowner whose income is under the limit and whose only struggle is the tax bill, it is often the lower cost path.
A reverse mortgage solves a bigger set of problems. It can pay off an existing mortgage, cover taxes and upkeep, and provide a line of credit for the years ahead. It also costs more, and taking one out today makes the home ineligible for the deferral program.
Who should look at deferral first
- You own the home outright, or nearly so.
- Your household income is under the state limit for the year you apply.
- The tax bill is the main thing straining the budget.
- You want to keep a reverse mortgage available as a later option.
When a reverse mortgage may fit better
- You still have a monthly mortgage payment you want to retire.
- Your income is over the deferral limit.
- You need help with more than taxes: repairs, care at home, or everyday costs.
- You want a standby line of credit for the future.
Side by side
How the two compare.
| Oregon property tax deferral | Reverse mortgage (HECM) | |
|---|---|---|
| Who runs it | Oregon Department of Revenue, through your county assessor | A private loan, insured under an FHA program, arranged through a licensed lender or broker |
| Age | 62 or older by April 15 of the application year, or receiving qualifying disability benefits | 62 or older |
| What it pays | Your county property taxes | Pays off an existing mortgage first, then a line of credit, monthly payments, a lump sum, or a mix |
| Cost | Simple interest set by the state, no closing costs | Origination, closing costs and program fees, plus interest, generally added to the balance |
| Income limit | Yes, set each year | No income limit, but a financial assessment confirms you can keep up taxes, coverage and upkeep |
| When you apply | January 1 to April 15, at the county | Any time, after independent counseling |
| When it is repaid | When the home is sold, ownership changes, or the last qualifying owner passes away or moves | When the last borrower sells, moves out for good, or passes away |
| Can you have both? | Generally no. A reverse mortgage taken out on or after January 1, 2017 makes the home ineligible for deferral. | |
Program details come from the Oregon Department of Revenue for 2026 and change from year to year. Confirm current rules with the Department of Revenue or your county assessor before you apply.
Where to start
Two calls worth making this fall.
For deferral, call your county assessor's office and ask for the senior deferral clerk, or contact the Oregon Department of Revenue Deferral Unit. In Clackamas County that is Assessment and Taxation in Oregon City. In Multnomah County it is the Division of Assessment, Recording and Taxation.
For a reverse mortgage, call me. I will look at both paths with you, write down what each one would mean for your home, and tell you honestly if deferral is the better fit.
Common questions
Can I have Oregon's property tax deferral and a reverse mortgage at the same time?
Generally no. Oregon law makes a home with a reverse mortgage ineligible for the Senior and Disabled Property Tax Deferral Program. The only exception is a reverse mortgage taken out between July 1, 2011 and December 31, 2016 with enough equity remaining. A reverse mortgage taken out today ends deferral eligibility for that home.
I am already in the deferral program. Can I still get a reverse mortgage?
Possibly, but the state's deferral lien would need to be settled, and you would leave the program. Before you decide, I will help you get the payoff figure and confirm the details with the Oregon Department of Revenue Deferral Unit and the title company.
When can I apply for property tax deferral?
Applications are filed with your county assessor between January 1 and April 15. The 2026 household income limit is $70,000, and there are age, ownership, residency and net worth rules. Check the Oregon Department of Revenue's current booklet for the year you apply.
Which one costs less?
For many homeowners whose only problem is the tax bill, deferral costs less. It charges simple interest and has no closing costs. A reverse mortgage has upfront and ongoing costs, but it can also pay off an existing mortgage and provide money for other needs. The right answer depends on what problem you are trying to solve.
When are property taxes due this year?
Clackamas and Multnomah county statements arrive in late October. For the 2026 to 2027 tax year the first payment is due Monday, November 16, 2026, and paying the full year by the due date earns a discount. Check your statement for your exact amounts and options.
Plain language guides
Keep reading.
Oregon reverse mortgage summary. At the end of the loan, some or all of the equity in the home may no longer belong to the borrower, and the home may need to be sold or the loan repaid from other assets. The lender charges an origination fee, a mortgage insurance premium, closing costs or servicing fees, which may be added to the loan balance. The loan balance grows over time and interest is charged on the outstanding balance. The borrower keeps title and is responsible for property taxes, insurance, maintenance and related taxes, and failing to pay them may make the loan due immediately and may subject the property to a tax lien or foreclosure. Interest is not deductible on an income tax return until all or part of the loan is repaid. A home with a reverse mortgage taken out on or after January 1, 2017 is not eligible for Oregon's Senior and Disabled Property Tax Deferral Program.
Not a commitment to lend. All loans subject to credit approval.
Talk with Becky
Bring your tax statement. I will bring the questions.
Call or text me, or send a note with a good time. Bring anyone you want in the room. Nothing is decided in the first conversation, and you will leave with answers in writing.