What are Proprietary or “Jumbo” Reverse Mortgages?

C2 Certified Reverse Mortgage Specialist

NMLS #242792 | DRE #0118730

C2 Financial Albany, CA Branch NMLS#: 1899037 | DRE #01821025


A proprietary reverse mortgage, often called a “Jumbo Reverse”, is a non-FHA reverse mortgage 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 “Jumbo Reverse 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 55, 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.

To find out more, call us today.


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