Reverse For Jumbo

Your age, the lending limits, the interest rate, and the appraised value of your home all factor into how much money you would be able to receive with a reverse mortgage.    With a traditional HECM reverse mortgage, the home value limit that can be borrowed against is currently capped at $970,800—whereas that limit on a jumbo reverse mortgage can extend into the millions of dollars.   For example, let’s say Harold owns a home that is worth $1.5 million. He may be able to borrow more funds with a jumbo reverse mortgage than a HECM reverse mortgage because the home value amount he is borrowing against is its full appraised value, not the $970,800 maximum he would face with a HECM reverse mortgage.  

NOTE: Story is for illustration purposes only. The persons depicted herein are fictional and any resemblance to actual persons is a coincidence.

Jumbo reverse mortgages often have no mortgage insurance premium (MIP), which can reduce the overall loan costs.   

With a HECM reverse mortgage, the FHA requires that the borrower pays both an initial and ongoing mortgage insurance premium (MIP), which helps make it a non-recourse loan. A non-recourse loan means if the balance on the loan exceeds the home value at the time the home is sold, neither you nor your heirs will be responsible for paying the deficit. This feature on a HECM reverse mortgage loan is guaranteed by the FHA.  

While most jumbo reverse mortgages are non-recourse loans, no jumbo reverse mortgages loans are insured by the FHA. 

Unlike a HECM reverse mortgage, with a jumbo reverse mortgage, condos do not necessarily have to be FHA-approved.