Section 5: Reverse Mortgage on a Jumbo Loans

 Reverse Mortgage Jumbo Loans

While most reverse mortgages are insured by the Federal Housing Administration (FHA) through its Home Equity Conversion Mortgage (HECM) program, there are also a rising number of non-FHA reverse mortgages known as proprietary products or private products. Among those non-FHA reverse mortgages, the programs offering loan amounts higher than the FHA’s lending limit typically are referred to as “jumbos.” Like jumbo programs in the forward mortgage market, reverse mortgage jumbos typically extend more borrowing potential to homeowners in that their lending limits exceed the current $970,800 lending limit set by FHA. Jumbo reverse mortgages are available to qualifying homeowners who have home values generally higher than the average HECM loan amount. Many jumbo reverse mortgages are held by homeowners in California and other areas where home values tend to trend higher than the national average.

Reverse Mortgage Jumbo Loan Requirements

Jumbo reverse mortgages are proprietary loans, meaning they do not need to adhere to Department of Housing and Urban Development program rules. There are several lenders offering jumbo reverse mortgages, and their specific elements vary. Some private reverse mortgage programs offer features that the FHA-insured Home Equity Conversion Mortgage (HECM) product does not. These might include:

• A minimum borrower age that is below the HECM minimum age of 62
• The ability to borrow on a non-FHA-approved condo unit
• The ability to take out the full amount of a lump sum payment upfront with fewer restrictions than under the HECM program

Another major difference is the jumbo’s lack of a mortgage insurance premium, a cost that applies to all HECM loans. Reverse Mortgage requirements on jumbo loans remain the same as traditional reverse mortgages. To see more about reverse mortgages, see the link.

Reverse Mortgage =>

Talk with an Orbit Home Loan specialist if you're considering a Reverse Mortgage Jumbo Loan.

Reverse Mortgage  Loans v. Traditional Jumbos

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Talk with an Orbit Home Loan specialist if you're considering a Jumbo Loan.