2023 Jumbo Reverse Mortgage (Lenders, Rates & Loan Limits)

September 7, 2023

By Michael G. Branson Edited by Cliff Auerswald 38 comments

While the HUD reverse mortgages are insured by the Federal Housing Administration (FHA) through its Home Equity Conversion Mortgage (HECM) program, there is also a rising number of Non-FHA reverse mortgages known as proprietary or jumbo reverse mortgages.

Among those Non-FHA reverse mortgages, the programs offering loan amounts higher than the FHA’s lending limit are typically called “jumbos.” Like high dollar or jumbo programs in the forward mortgage market, reverse mortgage jumbos typically extend more borrowing potential to homeowners in that their lending limits exceed the current $1,089,300 lending limit set by FHA.

Jumbo reverse mortgages are available to qualifying homeowners with higher home values than can be served with the average HECM loan amount. Many jumbo reverse mortgages are held by homeowners in California and other areas where home values tend to trend higher than the national average.

In this article, you will learn:

Differences between jumbo and FHA-insured reverse mortgages
Key benefits of a jumbo reverse mortgage
Risks and rewards of a jumbo reverse mortgage
History and current market outlook for jumbo reverse mortgages

DIFFERENCES BETWEEN JUMBO AND FHA-INSURED REVERSE MORTGAGES

Several lenders are offering jumbo reverse mortgages, and their specific elements vary. Jumbo reverse mortgages are proprietary loans, meaning they do not need to adhere to Department of Housing and Urban Development program rules.

Some private reverse mortgage programs offer features that the FHA-insured Home Equity Conversion Mortgage (HECM) product does not.

These might include:

A minimum borrower age that is below the HECM minimum age of 62 (when state lending laws allow)
The ability to borrow using a Non-FHA-approved condo unit as collateral
The ability to take out the full amount of a lump sum payment at closing with fewer restrictions than under the HECM program

Another significant difference is that jumbo reverse mortgages have no mortgage insurance premiums, as this cost applies only to FHA-insured loans.

In most respects, however, jumbo reverse mortgages are very similar to HECMs. Jumbo programs typically require reverse mortgage counseling, they may offer different disbursement options such as lump sum and a jumbo line of credit option, and they allow borrowers to tap into their home equity while they live in the home.

Jumbo VS HECM Product Comparison

Compare Features	Jumbo Reverse Mortgage	HECM Reverse Mortgage
Borrower Minimum Age	55	62
Maximum Lending Limit	$4,000,000	$1,089,300
Eligible Properties	Single Family (SRF), FNMA warrantable Condo, Townhome, 1-4 Units.	Single Family (SRF), HUD Approved Condo, Townhome, 1-4 Units.
Lump Sum	100%	Limited*
Line of Credit	10 Year Draw Period	Lifetime
Line of Credit Growth Rate	Limited to 7 Years	Lifetime
Tenure Payment Plan	No	Yes
Low/No Closing Costs	Yes	No
Younger Spouse Protection	No	Yes
Use for Home Purchase	Yes	Yes

*HECM initial lump sum limits at loan closing, and within the first 12 months of closing, cannot exceed the greater of 60% of the Principal Limit, or, Mandatory obligations plus 10% of the Principal Limit. Jumbo loans may take a 100% lump sum disbursement.

KEY BENEFITS

The key benefit of a jumbo reverse mortgage is the ability to maximize loan proceeds for a home valued higher than the HUD maximum of $1,089,300. The exact percentages and figures will vary depending on several factors, including interest rates, borrowers’ ages, and home value.

There will be times when homes valued slightly above the HUD limit will still benefit from the HECM program. However, many jumbos are available with a lending limit of $4 million or more — a significant increase over the HECM lending limit of $1,089,300.

Jumbo Reverse Mortgage Loan-to-values (LTV)

Borrower Age	Loan-to-value	Loan-to-value
Rate	9.500%	10.250%
55	23.7%	29.5%
60	25.1%	31.0%
65	26.3%	32.7%
70	28.4%	35.6%
75	31.7%	40.1%
80	36.5%	45.0%
85	42.5%	50.8%
90	44.0%	51.4%

LTV Tables as of: 09/07/2023
Available Payout: Lump Sum
*Divide your home value by the LTV percentage to calculate your loan amount.
E.g., $2,000,000 value, age 70 = 35.6% LTV or $712,000 loan amount.

Jumbo Reverse Mortgage Rates

Fixed Rate	Adjustable Rate	Lending Limit
9.500% (9.973% APR)	12.045% (6.625 Margin)	$4,000,000
10.250% (10.840% APR)	12.170% (6.750 Margin)	$4,000,000
10.375% (10.949% APR)	12.295% (6.875 Margin)	$4,000,000
10.500% (11.054% APR)		$4,000,000

Fixed Rate Payment Options: Lump Sum
Jumbo APR Illustration: Assumes $1,000,000 loan amount, includes standard 3rd party closing costs.
Adjustable-Rate Payment Options: Lump Sum or Line of Credit
Index: 12-Mo. CMT
Lifetime Cap: 5% Over Start Rate

RISKS AND REWARDS

For those considering a jumbo reverse mortgage, there are some pros and cons – most of which apply to all reverse mortgages.

Jumbo reverse mortgage rewards:

Borrower protections. Jumbo reverse mortgages typically carry borrower protections similar to those offered under the HECM program, such as the non-recourse feature, which means the borrower will not owe more to repay the loan than the home’s value at the time of sale. Many jumbos offer non-borrowing spouse protections, as well. However, it’s important to ask the lender about the specific borrower protections offered since private loans are not subject to the same protections required by FHA.
Access to loan proceeds. While HECM loans restrict how much loan proceeds can be accessed upfront, jumbos do not have these same requirements and often allow immediate access to the full loan proceeds, depending on the loan terms.
Higher loan amounts. Jumbo reverse mortgages allow qualifying borrowers to access their home value. At the same time, they remain in the home — a key benefit for those who have enjoyed significant home appreciation over time but may be retired and on a fixed income.

Jumbo reverse mortgage risks

Lack of FHA insurance. Reverse mortgage jumbos are still non-recourse loans, but since FHA does not insure them, they do not carry all the same borrower projections that HECMs do. It’s important to consult with trusted advisors and understand the loan terms and protections offered by your lender.
Impact on heirs’ inheritance. Like all reverse mortgages, jumbos allow borrowers to access their home equity while they remain in the home. By accessing and using this equity, borrowers will pass less equity on to their heirs than they would without the reverse mortgage. However, it’s important to note that if the borrower passes away, any equity that remains after the loan is paid off can be passed on to the designated heirs.

HISTORY AND CURRENT MARKET OUTLOOK

Like all mortgage products, the jumbo lending environment changes based on many factors. Historically, there were many Non-FHA reverse mortgages with different rates and terms.

After the housing crash in 2008, most jumbos disappeared from the market. Several jumbo products were launched based on low interest rates and changes to the FHA lending limit in recent years, offering various rates, terms, and features.

Suppose you are interested in a jumbo reverse mortgage. In that case, it’s important to ask about the terms offered by your lender, such as the amount that can be borrowed, how proceeds can be obtained, and the types of protections regarding non-borrowing spouses (if applicable).

Top FAQs

What is a jumbo reverse mortgage?

The jumbo reverse mortgage is a particular type of loan that offers larger loan amounts than the federally insured HECM. Where federally insured HECM loans stop considering home values over the HUD lending limit of $1,089,300, a jumbo reverse mortgage will consider home values up to $10 million.

What lenders offer jumbo reverse mortgages?

Many lenders and brokers throughout the US offer jumbo loan options. At All Reverse Mortgage Inc., we offer a multitude of HECM, Jumbo & proprietary options to suit your individual needs.

What are the interest rates on Jumbo Reverse mortgages?

All loan types, including Jumbo Reverse Mortgages, are subject to market fluctuations and can change anytime without notice. You should check our daily rate sheet to check current pricing on any given day.

How much can you get from a jumbo reverse mortgage?

The percentage of your home’s value is available based on the youngest borrower’s age and current interest rate environment. Generally, the older you are, the more you will receive, as these loans are based on actuarial tables.

Can you get a Jumbo reverse mortgage line of credit?

Yes. There are two exciting expansions on jumbo products in 2023, including larger loan limits and the ability to utilize available proceeds as an open line of credit option. (Previously, only a single lump sum disbursement was permitted on jumbo loans).

What is the difference between jumbo and proprietary loans?

“Jumbo” is a reference to a “large loan amount.” Where jumbo reverse mortgages are proprietary by nature, proprietary reverse mortgages are not necessarily jumbo. Some proprietary reverse mortgages are offered to home values as low as $450,000. In contrast, Jumbo programs usually benefit those high-valued homes more than the HUD lending limit of $1,089,300.

Additional Resources:

Read my article published at Forbes.com, “The Evolution Of Jumbo Reverse Mortgages.”

America's #1 Rated Reverse Lender Celebrating 19 Years of Excellence.

TALK TO OUR HUMAN EXPERTS TOLL FREE: 800-565-1722

LAUNCH ARLO CALCULATOR

38 Comments on this Article

Therese M.
August 27th, 2023

We have a jumbo reverse mortgage. Can I rent rooms with a rental company or privately in a primary residence? Do they say okay to transient renters or more long-term renters?
Reply to Therese
- ARLO™
  August 27th, 2023
  
  Hello Therese,
  Jumbo loans are private reverse mortgages and are not all subject to the same rules as the HUD HECM mortgage. Each investor who offers the loans makes their own rules; therefore, you need to verify with your loan documents the restrictions with your loan. Be sure to check the legal documents to see if this topic is covered and the restrictions. If you are still determining after reading everything, you can always contact the lender directly and request them to send you the specific document(s) that deal with any renters in your home while you live there, and you can always ask an attorney to review them. HUD is okay with renting a room month-to-month if the property is not used for transient occupancy (i.e., Airbnb rental).
  Reply to ARLO
James D.
January 19th, 2023

Hello,

I'm about to turn 65 and my brother 55. We are both on the deed of our home currently worth approximately $3.8 million with no mortgage. My question is, at some point when we qualify age-wise for a jumbo loan, will it be possible to borrow again in, say, 10 years from the initial borrowing date if the home's value increases to about $6 million or more? Also, will we have to wait until my brother is 62 and I'm 72 before getting a jumbo?
Reply to James
- ARLO™
  January 31st, 2023
  
  Hello James,
  
  You can always apply to borrow again even if you close a reverse mortgage now (refinance) if the value of the home warrants a new loan and you both qualify under the current terms available at that time. Jumbo lenders change their program requirements from time to time but there are some programs that allow for borrowers all the way down to age 55. Depending on how much money you owe on any current mortgages/liens, you may be able to get a jumbo loan with both of you on the loan now that meets your current needs. The ability to refinance the loan later to receive more money would depend on the current loan program parameters at that time and the interest rates available then.
  
  If you wanted the HUD HECM loan rather than a jumbo or proprietary reverse mortgage, you would need to wait until you are both at least 62 years old for both for you to be on the loan but with the jumbo or proprietary loans, the starting ages are set by the investors and are generally lower. Since HUD limits the maximum claim amount, the most value that would still increase the amount of money you would receive in the Principal Limit or Loan Amount is based on the current HUD maximum of $1,089,300. That does not mean your home of $3,800,000 would not qualify but it would receive no greater loan amount than a home valued at the maximum of $1,089,300 because any value more than that amount under HUD's program receives no additional benefit.
  You could wait until you are 62 for the HUD program but then your loan would be based on the HUD Maximum in effect at that time. There is no way to know at this time what HUD's limits would be in 7 years or what the interest rates would be, and both impact the formula that determines how much money borrowers receive on reverse mortgages (rates and markets also affect jumbo programs).
  Reply to ARLO
Anita H.
July 15th, 2022

Hi Arlo,

Our reverse mortgage lender is requiring we come up with $25,000 instead of us getting any money on a jumbo reverse mortgage. Full time residence house appraised at $1,500,000 we owe $625.000. Rate fixed at 9.15%. Does this sound right? They started off saying we would get money, now we have to come up with money? Your opinion please? My age is 69.
Reply to Anita
- ARLO™
  July 19th, 2022
  
  Hello Anita,
  
  I don't know when you received your first figures but this is the market in which we find ourselves for the jumbo or proprietary loans at this time. The current inflationary pressures have caused a sharp increase in rates, especially for fixed rate reverse mortgage loans (both the HUD HECM and the Jumbo programs).
  That pressure created an interruption in the appetite for the bonds backed by the jumbo reverse mortgages and the companies who originate and issue the bonds had to move quickly to adapt to the market. Many saw large losses on loans already closed.
  
  It was in March of this year when the market for this product began to become more and more volatile but the rates remained lower until June when the rates suddenly shot up. And with reverse mortgages, since borrowers receive less money on the loan when the rates are higher, with higher rates come lower loan amounts.
  When the rates shot to 9% or more in the middle of June, investors were forced to make changes to the loan programs which included loan to value reductions and that is why borrowers now receive less money than they did before this time (just the same as the borrowers of the HUD HECM reverse mortgages now receive less money with higher interest rates as well).
  
  When you comment that they started off saying you would get more money and now it is less, if the initial conversations you had with originators were prior to the interest rate increases and program changes, they would have been quoting you based on what the programs allowed at that time. Unfortunately, though, you were caught in the same predicament in which all borrowers now find themselves and since your loan was not closed before the programs changed, you would be subject to the program changes.
  
  And people need to realize that we may not be done with all the changes yet. Just two days ago, CNBC published an article saying traders were betting that the Fed could raise rates an additional 1% this month in their July 26-27 meeting.
  There is no way to know how much that may further adversely impact the interest rates for reverse mortgages (and all other loans too for that matter), but that is not typically good news for reverse mortgage borrowers because if rates rise still further, borrowers will receive even less in their loans.
  
  When you ask "does this sound right"? I would answer that it sounds terrible but unfortunately, it is the reality we are all living with during this time of extraordinary inflation. It doesn't sound good and thankfully these sorts of increases are not commonplace but your lender is not being deceitful if they originally advised you about current rates before about June 17th.
  Reply to ARLO
Steven T.
April 27th, 2022

Is the jumbo reverse mortgage interest rate fixed from the first to the end?
Reply to Steven
- ARLO™
  May 2nd, 2022
  
  Hello Steven,
  
  Just like forward loans, there are both fixed rate and adjustable-rate reverse mortgage loans available. The fixed rate loans are fixed for life and the adjustable-rate loans will adjust their rates in accordance with the terms of the loan.
  Reply to ARLO
Fran W.
February 15th, 2022

Hi Arlo,

My husband (age 62) and my sister (age 70 who does not live in the house) are borrowers and on the deed of our home. Our home was appraised for $1.4 million we owe $400,000. Is it possible to refinance the house into a reverse mortgage and remove my sister's name? Or do we have to refinance the house with a regular lender, remove her name then do the RM, and if so, how long after refinancing with a regular lender would we have to wait before obtaining the reverse mortgage. Thank you!
Reply to Fran
- ARLO™
  February 15th, 2022
  
  Hello Fran,
  
  You do not need to do an interim loan to remove your sister. The title change can be completed with the loan and as long as your sister is willing to sign the necessary documents to remove herself from title, and your husband would sign a deed to add you to title, the reverse mortgage loan would be closed in yours and your husband's name.
  Reply to ARLO
Jim
October 7th, 2021

I'm over 62 and own two unmortgaged residences in different states, spend half the year in each one. Each is valued at more than $2M and wondering if I can take out a jumbo mortgage from each one? Assuming (roughly) a 50% L/V maximum draw, could I get $2M lump-sum?
Reply to Jim
- ARLO™
  October 13th, 2021
  
  Hello Jim,
  
  Unfortunately, not. You can only have one reverse mortgage at this time. The loan must be on the home you use as your primary residence. That would be determined by the home at which you not only spent the majority of the time but also the one to which your driver's license is connected as well as all your banking accounts, where you listed as living on your taxes returns, etc.
  Several years ago, there were reverse mortgage programs for second homes but they disappeared at the time of the mortgage melt down and none have reappeared since.
  Reply to ARLO
- Kyle
  February 9th, 2022
  
  Who covers the non recourse aspect (loan value exceeding home price) on jumbo reverse mortgages?
  Reply to Kyle
  - ARLO™
    February 15th, 2022
    
    Hello Kyle,
    
    Since there is no Mortgage Insurance to cover losses, the private programs start their loan parameters at lower limits as a percentage of the home's value to help mitigate excessive losses and their underwriting parameters have always been a bit tighter.
    Private programs have no insurance fund to fall back on to mitigate losses and as a result, must rely more fully on the underwriting and program parameter safeguards that they build into the program (which by the way, HUD is now determining that they must also do and they have lowered their Principal Limits several times in the past, have lowered the rate floor which determines how much money borrowers receive at different interest rates, now review all appraisals before lenders can give borrowers an approval reserving the right to require a second appraisal at their discretion and have established Financial Assessment rules which require a full underwrite of the borrowers' qualifications that prior to 2014 were never a part of reverse mortgages).
    The private programs must accept any losses incurred as a cost of offering the program as those loans are also non-recourse loans so they are typically timelier in the review of their programs and make adjustments as needed (and that includes positive changes for borrowers) whereas HUD is usually more deliberate and slower to react.
    Reply to ARLO
Bill
August 20th, 2021

I'm 62, will retire in 5 years and thinking how a reverse mortgage could supplement my retirement. current home value $1.55M, current mortgage balance $698K What would max reverse mortgage be if I was 67 today?
Reply to Bill
- ARLO™
  August 24th, 2021
  
  Hi Bill,
  
  If you would like to run "what if" numbers, please feel free to visit our online calculator. It will tell you want is available today and you can use any birthdates you wish to see the amounts for different ages but I really must caution you that programs change constantly. In addition to that, one of the factors that determine how much borrowers receive under reverse mortgages is the interest rate at the time. Very difficult to predict the future and amounts change with changing program parameters and interest rate fluctuations.
  Reply to ARLO
Jeffrey H.
June 5th, 2021

What is maximum reverse mortgage amount for home valued at $1,500,000.00 with borrower age 75.
Reply to Jeffrey
- ARLO™
  June 5th, 2021
  
  Hello Jeffrey,
  Currently, 56.7% is the maximum loan-to-value on a jumbo reverse mortgage for a borrower age 75. You get a detailed quote by using ARLO calculator.
  Reply to ARLO
Dick O.
March 31st, 2021

Question for Arlo,

With a jumbo loan are the beneficiaries liable if the property is "under water?"...
Reply to Dick
- ARLO™
  April 7th, 2021
  
  Hello Dick,
  
  Reverse mortgages are still non-recourse loans, jumbo or HECM.
  The lender can only look to the property as their security for repayment of the debt.
  Reply to ARLO
Keren
February 2nd, 2021

Does reverse mortgage appraiser of jumbo loan check the attic?
Reply to Keren
- ARLO™
  February 2nd, 2021
  
  Hello Keren,
  
  Yes, the inspection is known as a "head and shoulders" inspection where the appraiser does not actually climb up into the attic but will get on a ladder and shine a light into the attic to look for areas of light shining through the roof, evidence of water leaks and anything else that can be determined from a limited visual inspection.
  Reply to ARLO
Max
November 17th, 2020

2020 Jumbo reverse mortgage loan $670,000-700,000 and the appraised value is $1.6M. Will the property tax and insurance be paid by the mortgage company?
Reply to Max
- ARLO™
  November 17th, 2020
  
  Hello Max,
  
  As the owner of the property, you are responsible for the payment of the taxes and insurance on the home.
  Since there are no payments that you regularly make on a reverse mortgage, lenders cannot impound amounts monthly to pay the payments when they are due.
  The only way a lender could pay the taxes and insurance for borrowers on reverse mortgages is to set aside funds to cover these charges for life and HUD does have a process to do this but the Life Expectancy Set Aside (LESA) can amount to many thousands of dollars even on small value homes.
  For properties with values over $1,000,000 (and much higher in some instances), the set aside could be a substantial amount, cutting well into the amount borrowers would receive under the program.
  I would encourage every borrower to make an honest assessment of their finances and if even after the reverse mortgage things are still tight when paying this assessments, it may be time for a downsize rather than delaying the inevitable move later.
  If the concern is the act of making the actual payments, perhaps an auto pay through your bank or other service can help?
  Reply to ARLO
Therese M.
September 27th, 2020

Hi ARLO,

We live in our home full-time, but we have an In-law apartment that we would like to put on for rent or with Airbnb or a rental agency is that allowed with the Jumbo reverse mortgage?

Thank you! Therese
Reply to Therese
- ARLO™
  September 27th, 2020
  
  Hello Therese,
  
  HUD does not allow the short-term rental of the home as it violates the terms against transient usage, but I can't tell you what your jumbo or private investor's rule's may be in this regard.
  Because the loan is a private product, it would be governed by the rules as established in the loan documents you signed when you receive the loan and different investors have different parameters.
  You really should check your loan documents to determine if they prohibit short term rental of any portion of the property.
  If you are not sure or do not have your loan documents, you can obtain another copy from your servicer and can always ask them to send you anything that either allows or forbids you to rent the Accessory Dwelling Unit under some terms.
  Reply to ARLO
Suzanne B.
September 22nd, 2020

Is there a Reverse Mortgage for a home valued between $825-850K where 50% can be taken out at closing & in subsequent years take more out, leaving about $50K remaining? Do Jumbo Reverse Mortgages start at $1M?
Reply to Suzanne
- ARLO™
  September 22nd, 2020
  
  Hello Suzanne,
  
  The amount available to borrowers is partially determined by their age.
  The older the borrower, the greater the amount of money as expressed as a percentage of the home's value is available.
  Because there are no payments required, it is important to remember that the loan balance will grow over time.
  A borrower who is 62 years old statistically can live and accrue more interest on a loan than a borrower who is 87 and so the amounts available to each of those borrowers varies drastically.
  Jumbo reverse mortgages start at anything over the HUD maximum lending limit of $765,600 but in all honesty, because HUD normally offers a higher loan amount in relationship to the value than jumbo programs, it usually does not make sense for most borrowers with values below $1,000,000 or in homes that HUD will not accept to consider these programs.
  About your remaining question, no program is going to lend you all but $50,000 on a reverse mortgage.
  Considering the fact that reverse mortgages are looking for about a 50% loan to value as a rule of thumb and all but $50,000 would account for about 94% financing, you would not be able to get near that level of funds available on a reverse mortgage (or even a forward mortgage on a cash out transaction either I would venture to guess).
  Reply to ARLO
Annette H.
September 15th, 2020

How long does it take to take out a jumbo reverse mortgage?
Reply to Annette
- ARLO™
  September 15th, 2020
  
  Hello Annette,
  
  It normally takes anywhere from 45 to 60 days for most jumbo loans but currently, things are crazy.
  If you are in an area where appraisers are scarce or extremely backed up, or if your value is over $2,000,000 requiring 2 appraisals, I would tell you to plan for 75 days at this time.
  If we can get all the third party services to act in a quick manner, we can close much faster than this but too many times we have been held up by the lack of appraisers and the ability to have the services returned in less than 30 days and sometimes longer.
  Reply to ARLO
George W.
October 1st, 2019

i'm disabled vet exempt from property taxes thinking about jumbo reverse mortgage in a va loan now house value is $250.000 balance owed is $238.043.00 can i get a jumbo reverse mortgage and if so how much i dont pay no closing cost due to being a veteran.
Reply to George
- ARLO™
  October 6th, 2019
  
  Hello George,
  
  Firstly, I would like to thank you for your service. I am not aware of a VA reverse mortgage program and the FHA programs require borrowers to have somewhere around 50% or more (depending on your age) of equity in the home due to the fact that you will not be making any payments for the rest of your life.
  You would not be any better off with the jumbo or proprietary programs but even if they did give you more money in comparison to the value of your home, they really do not make more sense for most borrowers until the property value exceeds $900,000. I am sorry, I have not worked with any VA programs for over 20 years personally and would not know where best to direct you.
  My suggestion would be to do an internet search for VA home loans to determine if there is a program available that would better suit your needs.
  Reply to ARLO
Norma C.
July 21st, 2018

WHY CANT I GET A LOC ON A JUMBO REVERSE MORTGAGE?
Reply to Norma
- ARLO™
  July 21st, 2018
  
  Hi Norma,
  
  This is a great question but it is a complicated answer. The line of credit reverse mortgage from HUD is an instrument that is also only offered as an adjustable rate loan for a very good reason. The line grows on the unused portion over time and there is no way to know what the interest rate environment will be like when borrowers do decide to take the funds available to them.
  Lenders are able to allow borrowers to take the funds whenever they want due to the fact that all of these loans are adjustable rate mortgages whenever the borrower wishes to draw additional funds in the future, it would be at current interest rates. There is no way to hedge for the interest rate risk on the loan not knowing what the rates would be in 5, 10 or even 20 years so HUD and GNMA (the agency that securitizes the reverse mortgage loans and sells the securities) will not allow the line of credit to be done as fixed rate loans.
  At one point, lenders did try to introduce a fixed rate line of credit program. The product was very short-live and GNMA issued an announcement just months later on April 1, 2014 announcing that the loans would not be eligible for inclusion in the government insured securities pools due to the inherent risks (you can read that announcement Here).
  
  The jumbo loans are fixed rate loans that are sold to private investors. They are no more willing to accept the uncertainty of a future interest rate market and therefore the interest rate risk than the federal government. In the case of higher future interest rates, investors holding a fixed rate line of credit loan on which borrowers had not yet drawn their funds would have unfunded and uncovered liabilities (commitments to lend to borrowers) at below market rates that could be disastrous.
  This would be bad not only for the investor, but also for the borrower who thought they had a reverse mortgage and then the investor was forced out of business because they could not honor the below market rates when the money was no longer available.
  Borrowers could be left high and dry with no reverse mortgage funding available which would hurt them and the entire reverse mortgage industry. By funding the entire balance at closing, the jumbo loans may be securitized and sold just as the fixed rate government loans and other loan programs. There is no excessive interest rate risk and therefore lenders and borrowers are protected.
  Reply to ARLO
  - Elizabeth M.
    April 13th, 2020
    
    Is fixed rate line of credit possible with any institutions you know about? Is it best to refinance with Bank holding current mortgage for best rates?
    Reply to Elizabeth
    - ARLO™
      April 20th, 2020
      
      Hello Elizabeth,
      
      Refinancing for rate alone often makes no sense and in fact, may not even work under the HUD guidelines where borrowers must receive certain benefits before, they are even eligible to refinance the loan.
      It would take a very large rate reduction and quite a bit of time to make it worthwhile considering the additional costs.
      You can have us look at your current loan just by sending your most recent statement and let us see if the loan even can be refinanced and then give you a proposal with amortization schedules so you can compare if you would be able to refinance, but in all honesty, unless the new loan gives you more money that you need or the drop in rate is so large that the accrual of interest pays for the new loan very quickly, I would not recommend refinancing the loan.
      It just does not make sense to incur additional debt to refinance to save incurring interest in most cases. If you would like us to look at it and send you the numbers, we would be happy to do it from the standpoint that if it is not right for you, we don't think you should do it instead of from the standpoint of pushing you to refinance the loan.
      Reply to ARLO
Noah N.
February 14th, 2018

Are jumbo reverse mortgages available in NY (Brooklyn)? Three sisters who inherited a house worth about $2.5 million seek to buy out one sister for 1/3 of the value and to finance it through reverse mortgage.
Reply to Noah
- ARLO™
  February 14th, 2018
  
  Hello Noah,
  
  There still are very few proprietary or jumbo reverse mortgage programs available and as I look at the available states for the investor to whom we sell loans, New York is not one of the approved states. I'm sorry, I do not have a suggestion for you at this writing but I would advise you to keep looking as there are more and more rumblings of other investors who are either planning to enter this space or contemplating it.
  Reply to ARLO

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JUMBO REVERSE MORTGAGES.

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In your current area 100 homeowners are currently utilizing reverse mortgages to better enhance their retirement years, with 500,000 nationwide!

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The minimum qualifying age for a reverse mortgage is 55

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2023 Jumbo Reverse Mortgage (Lenders, Rates & Loan Limits)

DIFFERENCES BETWEEN JUMBO AND FHA-INSURED REVERSE MORTGAGES

Jumbo VS HECM Product Comparison

KEY BENEFITS

Jumbo Reverse Mortgage Loan-to-values (LTV)

Jumbo Reverse Mortgage Rates

RISKS AND REWARDS

HISTORY AND CURRENT MARKET OUTLOOK

Top FAQs

What is a jumbo reverse mortgage?

What lenders offer jumbo reverse mortgages?

What are the interest rates on Jumbo Reverse mortgages?

How much can you get from a jumbo reverse mortgage?

Can you get a Jumbo reverse mortgage line of credit?

What is the difference between jumbo and proprietary loans?

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