Proprietary Reverse Mortgage Loan

Calculate Your Eligibility

When planning for retirement, many adults look forward to spending their golden years doing things they enjoy—more time with family and friends, hobbies, traveling, and living comfortably in their homes.  To accomplish these goals, they will need to have a way to pay for them.

While a Home Equity Conversion Mortgage (HECM) is an attractive financial tool for tapping into your home’s equity, there is a limit to the maximum loan amount set by the Federal Housing Administration (FHA).

What if your home value is above the traditional HECM limit of $822,375? A proprietary reverse mortgage, also known as a jumbo reverse mortgage, may be the answer.  A jumbo reverse mortgage can assist homeowners that have high-value homes and convert a portion of their home’s equity into funds.

Jumbo Reverse Mortgage Facts

Loan Limits are Higher:  Traditional HECMs limit borrowers to a maximum claim amount of $822,375 whereas a jumbo reverse mortgage allows borrowers to access up to $4,000,000 (depending on the lender).

Rates:  Like forward mortgages, interest rates tend to be higher for jumbo products than the traditional loan.

Access to Funds is Immediate:  HECMs limit the amount of proceeds available to the borrower in the 1st year.  However, jumbo reverse mortgages allow borrowers to receive the full amount of proceeds upfront, immediately after the loan closes.

Mortgage Insurance Premium (MIP):  HECMs are insured by the FHA, which requires the borrower to pay upfront and ongoing MIPs.  Since jumbo reverse mortgages are not FHA-insured, this fee is not required.

Borrower Requirements

Home is the Main Residence:  The property must be the borrower’s primary residence.

Maintaining the Home: Borrowers are required to maintain the home for the life of the loan.

Charges Related to the Property: Borrowers must continue to pay property taxes, homeowners insurance, and in some cases homeowners association (HOA) fees.

Are you Interested in learning more about a jumbo reverse mortgage loan? Call (800) 976-6211 to speak with a licensed reverse mortgage advisor.