Jumbo reverse mortgage loans offer more equity to access than HECMs.
How? Jumbos have a borrowing limit of $4 million, as opposed to the $1,149,825 HECM limit.
Jumbo reverse mortgages are proprietary reverse mortgage loans offered by private lenders like Movement Mortgage, designed for homeowners with high-value properties that exceed the Federal Housing Administration (FHA) lending limit of $1,149,825.
If your home was appraised for any value above the FHA cap, you would be leaving equity on the table with a typical home equity conversion mortgage (HECM). Conversely, a jumbo reverse mortgage would enable you to access up to $4 million in equity.
Jumbo reverse mortgages also offer other advantages. One is that they do carry mortgage insurance premiums as the FHA-insured HECM, which can reduce overall costs. Another if that jumbos offer greater latitude in age requirements, with some states offering eligibility as young as 55 (as opposed to the HECM minimum of 62.
Lastly, jumbos offer immediate access to the full loan proceeds within the first year, without restrictions imposed on HECMs.
Here’s Why a Jumbo May Be Your Solution
Far Higher Borrowing Limits
Allows homeowners to borrow up to $4 million, significantly more than the FHA lending limit of $1,149,825.
No Mortgage Insurance Premiums
Unlike HECMs, jumbo reverse mortgages don’t require upfront or annual mortgage insurance premiums.
Flexible Age Requirements
Some lenders offer jumbo reverse mortgages to borrowers as young as 55, depending on the state, as opposed to the age minimum of 62 for HECMs.
Full Access to Funds
Borrowers can receive 100% of the loan proceeds in the first year, unlike the 60% limit on traditional reverse mortgages.
Non-Recourse Protection
Similar to HECMs, jumbo reverse mortgages are typically non-recourse loans, protecting borrowers and heirs from owing more than the home’s value.
No FHA Approval Required
Condos and other properties don’t need FHA approval to qualify, which can be an issue with HECMs.
You Can Buy a New High-Value Home with a Jumbo Reverse Mortgage Loan
Check out my page about using a reverse mortgage to buy your dream home—reach out to me to get started!
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Learn More About a Loan You’ll Love
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Whether you’d like better cash flow, want to move closer to family or need to make your home accessible, I’m here to help.
*consult a tax/financial professional