Skip to main content
Jumbo Loans

A comparision of jumbo and HECM reverse mortgages

A new option for owners of high-value homes!

Today the two most popular types of reverse mortgages on the market are the Home Equity Conversion Mortgages (Insured by the FHA), and Jumbo or proprietary reverse mortgages. While FHA Reverse Mortgages have been around for 30 years, jumbo reverse mortgages are a newer option for owners of a higher-value property, gaining prominence over the last decade with flexible program choices.

The “jumbo reverse” is good news for today’s homeowners that have seen significant growth in value in recent years; homeowners of properties with values around $1,000,000 or higher often find this is the best way to incorporate their home equity into their retirement plan. Many Financial Planners recommend the jumbo reverse as a tool that allows their senior clients to tap into considerably more of their home’s value. A jumbo reverse mortgage is designed for homeowners of higher-valued properties that exceed the maximum value that FHA will consider when calculating a loan amount ($1,149,825), helping them access a larger portion of their home’s value. Those over the age of 55-60 with significant equity in a more expensive home are ideal candidates for a jumbo reverse mortgage.

What benefits make a jumbo reverse different?

While jumbo reverse mortgages have many similarities to the FHA reverse, they are unique for a number of reasons. One of the most notable benefits is that many jumbo reverse mortgages offer loan amounts as high as $4 million. In addition, property values are considered up to $10 million when calculating loan amounts.  Another advantage of the jumbo reverse is that these private mortgages do not charge the significant FHA insurance premiums that are required on FHA’s reverse, the Home Equity Conversion Mortgage. Traditionally one of the FHA reverse mortgage’s most significant closing costs and ongoing monthly charges.

A jumbo reverse mortgage is a private or proprietary loan which means the loans terms, conditions and guarantees are established by the lender versus the typical FHA insured reverse mortgage which is administered by HUD. In addition to not incurring the cost of mortgage insurance, today’s jumbo reverse mortgages are available with very low closing costs, even significantly lower than closing costs for the refinance of a traditional home loan. Some jumbo reverse programs have closing costs as low as $125.

Here are some of the features of today’s jumbo reverse mortgages (features and benefits vary by the issuing bank and jumbo loan that is chosen).

  • Loan amounts up to $4,000,000
  • Property Values up to $10,000,000
  • No first-year limits on how much cash you can draw
  • Flexible options for accessing your home equity:
    * Lump Sum of Cash to You at Closing
    * Monthly Payments to You for 12 to 60 months
    * Jumbo Reverse as a 2nd mortgage behind your current low rate 1st mortgage 
    * Line of Credit 
    * Combination of some of the Options above

Here are just a few of the unique ways other homeowners have used their jumbo reverse mortgage:

-"Our Jumbo Reverse improved our cash flow by eliminating a required mortgage payment and improved our feeling of security with a sizable standby line of credit"

-"My grandchildren will be graduating from college with no student loans thanks to our Jumbo Reverse Mortgage"

-"With our Jumbo Reverse, we put a new roof on our home and updated the kitchen and bathrooms making our home more secure, comfortable...and valuable...while eliminating our required mortgage payment and all without taking on any new monthly payment”.


Contact me today to learn more or for a no-obligation evaluation.

Rosemarie J. Litoff

(Please provide either your phone number or email address above so we can reply)


By clicking "Submit" I agree by electronic signature to:
1. Receive disclosures and communications about my loan inquiry in electronic form (I confirm that I have a working computer system and internet website browser to view this webpage); and
2. Be contacted about a mortgage at my phone number even if my phone number appears on a State or National Do Not Call Registry, or any other Do Not Contact List.
3. We respect your privacy. We do not sell our subscriber email list to other parties. As we are a financial institution, any personal identifying information submitted to us here will be used for the purpose of communicating with you or advertising to you now or in the future, with the hope of presenting you with financial products that may fit your need. Please see our privacy notice for additional details.
4. By sharing your contact information, you express consent to C2 Financial Corporation to contact you about your inquiry via phone call or text at the phone number and/or email address you provide using a manual or automated system. You are not required to enter into this agreement as a condition for doing any kind of business with C2 Financial Corporation, and you can revoke this consent any time. To speak with someone at C2 Financial Corporation, please call 8056570432.