What is a Jumbo Reverse Mortgage?
It is a home loan that allows older homeowners to access a portion of the equity they have in a high-value property and allows them to defer repayment to a later date.
Repay loan balance each month or make no mortgage payments
Need to maintain your home and keep in good repair
Get more cash upfront with equity up to $4m
Key advantages of Jumbo Reverse Mortgage.
Access more equity
Your age, the lending limits, the interest rate, and the appraised value of your home all factor into how much money you would be able to receive with a reverse mortgage.
With a traditional HECM reverse mortgage, the home value limit that can be borrowed against is currently capped at $822,375 — whereas that limit on a jumbo reverse mortgage can extend into the millions of dollars.
Avoid paying a mortgage insurance premium (MIP)
Jumbo reverse mortgages often have no mortgage insurance premium (MIP), which can reduce the overall loan costs.
With a HECM reverse mortgage, the FHA requires that the borrower pays both an initial and ongoing mortgage insurance premium (MIP), which helps make it a non-recourse loan.
A non-recourse loan means if the balance on the loan exceeds the home value at the time the home is sold, neither you nor your heirs will be responsible for paying the deficit. This feature on a HECM reverse mortgage loan is guaranteed by the FHA.
While most jumbo reverse mortgages are non-recourse loans, no jumbo reverse mortgages loans are insured by the FHA.
Less restrictive qualifications for condos
Unlike a HECM reverse mortgage, with a jumbo reverse mortgage, condos do not necessarily have to be FHA-approved.