Jumbo Reverse Mortgages

Jumbo Reverse Mortgage and Proprietary Reverse Mortgage Loans

JUMBO reverse mortgages – also known as proprietary reverse mortgages – are loans designed and offered by financial institutions that enable owners of high-value homes, who are 62 years old and older, to access greater amounts of their home equity than is available from the government insured HECM reverse mortgages. These proprietary type loan options include some additional benefits that should be considered before deciding how to best access home equity.

Types of Reverse Mortgage Loans

Currently, the most widely available kind of reverse mortgage available is the Home Equity Conversion Mortgage (HECM) type of loans. These loans are regulated and insured by FHA and managed by the Department of Housing and Urban Development (HUD). HECM reverse mortgages are available as a fixed rate loan or variable rate product (ARM), you can also access equity as a lump sum, monthly drawdown of equity, or line of credit.

Lenders offer their own versions of the JUMBO reverse mortgage product, each lender has their own guidelines for loan values, costs and underwriting guidelines.

Loan Limits and Jumbo Reverse Mortgages

The maximum loan amount on a traditional HECM reverse mortgage used to be as low as $200,000, though today, it has been raised to $970,800, effective January 1, 2022.

In the current market, homeowners aged 62 and above, with homes valued up to $8 million may be eligible to access their home equity with loan proceeds topping out near $6 million through a jumbo reverse mortgage.

Additional loan options for owners of high-value homes seeking access to their home equity include, home equity loans, home equity lines of credit, other personal loans secured by the home value, mortgage refinance and downsizing.