Jumbo Reverse Mortgage
Unlock more of your high-value home’s equity—and open the door to possibilities in retirement.
Is your home worth more than $1,000,000? Then the Home Equity Conversion Mortgage (HECM) may not be the right option for you. Learn more about the reverse mortgage loan for high value homes.
What Is a Jumbo Reverse Mortgage Loan?
Jumbo Reverse Mortgage Loans enable seniors with high-value homes (worth more than one million dollars) to access a larger portion of their equity than they could with a Home Equity Conversion Mortgage (HECM).
Like a HECM though, the Jumbo Reverse Mortgage loan proceeds are still tax free and the borrower does not have to make monthly mortgage payments. They simply have to pay expenses related to the property, like homeowner’s insurance, taxes, and maintenance costs.
The Two Types of Reverse Mortgage Loans
Why Choose a Jumbo Over a HECM?
Avoid FHA Lending Limits
HECMs are insured by the Federal Housing Authority (FHA). In turn, the FHA caps the maximum home value for HECMs that can be borrowed against at $1,149,825. So what happens if your home is worth $2,000,000? You’d potentially be leaving hundreds of thousands of dollars on the table with a HECM.
On the other hand, jumbo reverse mortgage loans are proprietary products and the limit will depend on the lender. With Retire Right Mortgage, our jumbo reverse mortgage allows for loan amounts up to $4 million.
Lower Costs Baked Into the Loan
Because HECMs are insured by the FHA, they carry a mortgage insurance premium (MIP). This cost is included in the loan and is paid both upfront and on an ongoing basis. MIP covers the HECM non-recourse feature, meaning the FHA pays for any shortage if the home’s value is below the loan balance when the home is sold.
With Retire Right Mortgage, our jumbo reverse mortgage loans are also non-recourse loans, but we do not charge MIP, giving you the best of both worlds.
*This advertisement does not constitute tax advice. Please consult a tax advisor regarding your specific situation. The homeowner is still responsible for paying property taxes, homeowner’s insurance, applicable association dues, and for maintaining the property.