Jumbo reverse mortgages for higher value homes
If your home is worth well over the federal HECM limit, a private jumbo reverse mortgage can unlock a lot more of your equity. Loan amounts up to $4 million, no FHA insurance premiums, and flexible payout options.
Two reverse mortgages dominate the market
Today, the two most popular reverse mortgages are the Home Equity Conversion Mortgage (insured by the FHA) and the Jumbo, sometimes called a proprietary reverse mortgage. The HECM is the one you've probably seen on TV. The jumbo is the one you've probably heard less about, and it's come back in a big way.
If you own a higher value home, a jumbo can tap significantly more of your equity than a HECM allows. The FHA sets a national HECM lending limit, and homes worth well above that limit leave a lot on the table when using the standard HECM. That's exactly where the jumbo makes sense.
Jumbo reverse mortgages are designed for homeowners of properties that exceed the federal lending limit, and they help you access a larger portion of your home's value. Homeowners over the age of 55 or 60 with significant equity in a higher value home are typically the best candidates for a private jumbo.1
What makes a jumbo different
Jumbo reverse mortgages share plenty with the traditional HECM, but four things really set them apart. Features vary by lender and product, but these are the headlines you'll see across most jumbo offerings today.
Access dramatically more of your home's value than a traditional HECM allows.
Considered by some lenders, opening the door for high value properties that the HECM can't fully serve.
No first year distribution limitations, unlike the HECM's year one cap on how much you can access.
Private loans skip the FHA MIP that's charged at closing and every month on a HECM. That's a significant cost savings.
The benefits of jumbo reverse mortgages
A quick look at what the jumbo does that the HECM can't, and who it's built for.
A private loan, not a federally insured one
A jumbo reverse mortgage is a private or proprietary loan. That means the loan terms, conditions, and guarantees are set by the lender rather than by HUD and the FHA. It's a different animal from a federally insured HECM.
Because it's private, features and benefits vary by the bank offering the product. That's actually a good thing when your situation is unique: there's more flexibility to match a loan to your specific goals. It also means it's worth talking through your options with a specialist who knows what's available.
Contact me today and I'll walk you through the jumbo options that make sense for your home.
How does a jumbo compare to a HECM?
Side by side on the things that matter most.
Curious whether a jumbo makes sense for your home?
Get an EstimateIs a jumbo the right fit?
The jumbo shines in a handful of specific situations. If any of these sound like you, it's worth a real conversation.
Homes above the HECM limit
If your home is worth well above the national HECM cap, a jumbo can tap the extra equity that a HECM leaves untouched.
Ages 55 to 61
Most jumbo products let you qualify before you hit 62, giving you access years earlier than a HECM would.
Homeowners avoiding MIP
If FHA mortgage insurance premiums are a dealbreaker for you, the jumbo skips them entirely.
See if a jumbo fits your situation
Every jumbo product is a little different. I'll run scenarios across the ones that make sense for your home so you can compare them side by side.
1 For the loans presented I am a mortgage broker only, not a mortgage lender or mortgage correspondent lender. I will arrange loans with third party providers but do not fund the loans directly. I will not make mortgage loan commitments for these loans.
This advertisement does not constitute financial advice. Please consult a financial advisor regarding your specific situation. There are some circumstances that will cause the loan to mature and the balance to become due and payable. Borrowers are still responsible for paying property taxes, homeowner's insurance, and maintaining the property. Failure to do so could make the loan due and payable. Credit is subject to age, income standards, credit history, and property qualifications. Program rates, fees, terms, and conditions are not available in all states and subject to change.
*Borrowers must continue to pay property taxes, homeowner's insurance, and home maintenance costs.