Skip to main content
Jumbo Reverse Mortgages

A comparision of jumbo and HECM reverse mortgages

The Reverse Mortgage has made tremendous strides since it was first introduced back in 1961.

Until recently, the only Reverse Mortgage program available was the Home Equity Conversion Mortgage (or, HECM). And this is still the primary type of loan utilized today. The only drawback to this loan, if you can call it that, is that it caps a property's value up to the current FHA national limit. Because of this, it also caps the maximum available loan amount. While this is often enough, typically, for much of the country, it can sometimes fall short in areas where property values are much higher, thus depriving the homeowner of a portion of their available equity.

Today, there are two types of Reverse Mortgages available: The Home Equity Conversion Mortgages (Insured by the FHA), commonly referred to as HECM, and a newer, proprietary reverse mortgage, also referred to as a Jumbo Reverse. The former is what you are more likely to be familiar with, from a number of television and print ads with celebrities touting the benefits of a "reverse mortgage". However, Jumbo reverse mortgages are now impacting the market in a big way due to the increase in property values throughout the country.

The good news is that homeowners of higher-valued properties looking to access and utilize a portion of their home's equity in their retirement years are now able to tap into considerably more of their home’s value and, thus, more of their equity. This can allow them to eliminate higher loan balances - and their payments - if applicable, with a reverse mortgage while also being able to take advantage of higher potential credit line or cash-out options.

Jumbo reverse mortgage are designed for homeowners of higher-valued properties that exceed the federal lending limit (currently $1,149,825 as of 2024), helping them access a larger portion of their home’s value. For example, the owner of a $2,000,000 home can now tap into its full value  with a Jumbo reverse mortgage, as opposed to being limited to the HECM's current maximum value limit.

Additionally, while a traditional HECM loan requires at least one occupying borrower to be 62 years of age, the proprietart Jumbo reverse program only requires a minimum age of 55 (or 60, dependiong on the state). The ability to tap into this equity at a younger age - up to 7 years earlier than the HECM - can make a susbtantial difference in a variety of ways.

Contact me today to learn more and/or for an assessment of your own unique situation.


Unique features of a Jumbo Reverse Mortgage:

While Jumbo reverse mortgages have many similarities with the traditional HECM reverse mortgage, they are unique for a number of reasons. One of the most notable and obvious differences is that a jumbo reverse loan go as high as $4 million, with property considered up to $10 million (with some lenders).

Another difference is that these proprietary mortgages do not require the significant up fron and monthly mortgage insurance premiums that are required on the traditional HECM. This means that most significant closing cost and ongoing monthly charges associated with the traditional reverse mortgage is eliminated.

Another difference: While the HECM is a government-based program, overseen by HUD, a jumbo reverse mortgage is a private, or proprietary, loan, with loan terms, conditions and guarantees that are established by the lender versus the tHECM reverse mortgage (which is administered by HUD and insured by the Federal Housing Administration).

Here are some of the features of today’s Jumbo Reverse mortgages (features and benefits may vary slightly by the issuing bank and jumbo loan product chosen):

  • Loan amounts to $4,000,000
  • Property Values to $10,000,000
  • No first year distribution limitations
  • No costly up-fron MI premium
  • No monthly MI premium of .50%
  • 100% of loan funds available at closing

Would you be interested in a more detailed comparison of Jumbo and HECM reverse mortgages?

Contact me today to learn more or for a free, no-obligation assessment of your situation and needs.

Steve Kaye

(Please provide either your phone number or email address above so we can reply)

By clicking "Submit" I agree by electronic signature to:
1. Receive disclosures and communications about my loan inquiry in electronic form (I confirm that I have a working computer system and internet website browser to view this webpage); and
2. Be contacted about a mortgage at my phone number even if my phone number appears on a State or National Do Not Call Registry, or any other Do Not Contact List.
3. We respect your privacy. We do not sell our subscriber email list to other parties. As we are a financial institution, any personal identifying information submitted to us here will be used for the purpose of communicating with you or advertising to you now or in the future, with the hope of presenting you with financial products that may fit your need. Please see our privacy notice for additional details.
4. By sharing your contact information, you express consent to C2 Reverse Mortgage to contact you about your inquiry via phone call or text at the phone number and/or email address you provide using a manual or automated system. You are not required to enter into this agreement as a condition for doing any kind of business with C2 Reverse Mortgage, and you can revoke this consent any time. To speak with someone at C2 Reverse Mortgage, please call (949) 350-4992.