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Reverse Mortgage Blog

What are Proprietary or "Jumbo" Mortgages?

April 13, 2022

1-Minute Video:

 

A proprietary reverse mortgage, often called a “Jumbo Reverse”, is a non-FHA #reversemortgage originated by a private lender, that often has more flexible guidelines and different features than an FHA insured reverse mortgage. Here are a few ways #JumboReverse mortgages can be used… Since FHA uses a limited maximum value in calculating the possible loan amount, homes whose value exceed that FHA Lending Limit can often benefit from a “Jumbo Reverse”. Under a “Jumbo Reverse”, they can qualify for much higher lending limits - that result in much higher loan amounts - than for FHA insured loans. “Jumbo Reverse” mortgages are also available to borrowers as young as 60, versus FHA’s limit of borrowers 62 or older. Jumbo Reverse mortgages are also often used by affluent owners of high value homes to enhance their financial and retirement planning. Many Financial Advisors find that Jumbo Reverse Mortgages can be useful in stabilizing or strengthening their client’s financial future, by slowing the withdrawal rate from investment accounts… or helping their clients avoid selling investments in a down market. While FHA reverse mortgages have a cap on the proceeds that can be paid out at closing, “Jumbo Reverses” typically allow any and all available funds to be drawn as soon as the day of closing. Finally, “Jumbo Reverse” mortgages don’t have the cost, or protection of FHA mortgage insurance, so they have closing costs much, much lower than an FHA Reverse Mortgage closing costs…and are often just a fraction of the cost to close a traditional refinance.

 

Steve Mitchell

Jumbo Reverse Mortgage in Monterey CA

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C2 Reverse Mortgage
Please enjoy our 1-Minute Video tips! Learn about Reverse Mortgages, Refinance Loans, Purchase Loans and HECM Loans from Reverse Mortgage Advisor and Home Equity Lender Steve Mitchell.
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Please enjoy our 1-Minute Video tips! Learn about Reverse Mortgages, Refinance Loans, Purchase Loans and HECM Loans from Reverse Mortgage Advisor and Home Equity Lender Steve Mitchell.
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