A jumbo reverse mortgage is a non-HECM reverse mortgage, it’s not in the family of FHA loans like the federally insured HECM reverse mortgage although it is similar but also different in several ways. Click here to watch a video on the jumbo reverse mortgage loan.
The jumbo reverse mortgage is available in loan amounts up to $4 million dollars and higher on exception, much higher than what the FHA HECM reverse mortgage can give. The loan amount is determined much like a HECM. The age of the youngest borrower must be 55 years of age, having ample home equity which is determined by a lender appraisal(s), prevailing rates, reasonable credit are all factors in determining a jumbo reverse mortgage loan amount.
Due to not having the upfront and monthly FHA insurance premium like the HECM reverse mortgage, the jumbo reverse mortgage origination fees costs much less. In exchange the interest rate is higher. Is the HECM reverse mortgage better than the jumbo non-HECM reverse mortgage? The answer is that it depends on your situation and how long you are looking to keep the property.
This jumbo reverse mortgage loan is available in a lump sum or line of credit and can do things a HECM reverse mortgage can’t. The minimum age limit is 55 and the loan limit is much higher as mentioned. If the subject property is a condominium and the H.O.A. isn’t FHA approved, a HECM reverse mortgage isn’t possible for that property. But a non-HECM jumbo reverse mortgage loan can be done in this scenario. Also, if a borrower can’t income qualify for a HECM reverse mortgage due to excessive monthly debt, a jumbo loan may be able to do that loan.
The jumbo reverse mortgage has its place and it’s important that you use the right lender that has access to all reverse mortgages available so you can compare each option side by side. I can make a personalized video for you with loan comparisons based on your unique situation. Again, here’s the link to watch a video with more detail on how the jumbo reverse mortgage works. Just let me know the details by filling out the form below!
Warm regards,
KW