As we move into 2026, many homeowners with higher-value properties are finding that the FHA-insured Home Equity Conversion Mortgage (HECM) program no longer unlocks the equity they expect.  That’s where jumbo reverse mortgages may come into play.  These privately funded programs offer higher lending limits, more flexibility, and solutions for property types that do not meet FHA standards.

This guide explains how jumbo reverse mortgages work, how they compare to HECMs, and why 2026 may be a particularly important year to evaluate your options.

Quick Summary: Jumbo Reverse Mortgages in 2026

• Designed for higher-value homes, often above FHA limits
• Privately funded, not FHA-insured
• Can offer higher loan amounts but fewer features and protections
• Best compared side-by-side with a HECM before choosing

2026 Jumbo Reverse Mortgage vs HECM features, presented on a classroom whiteboard with a friendly ARLO-style mascot pointing to the key differences.

What is a Jumbo Reverse Mortgage?

A jumbo reverse mortgage is a proprietary, non-FHA-insured reverse mortgage designed for higher-value homes.  Unlike a HECM, which is capped at the national FHA lending limit of $1,249,125 for 2026, jumbo programs can lend up to $4 million.

Because these are private programs, lenders set their own guidelines.  That flexibility allows features HECM does not offer:

  • Eligibility starting at age 55 in certain states
  • Financing for non-FHA-approved condos
  • Full upfront access to proceeds
  • No FHA mortgage insurance premiums
  • Higher loan limits based on the home’s full value

Did You Know?  If your home is worth more than the 2026 FHA limit of $1,249,125, a jumbo reverse mortgage may let you access far more of your equity, without FHA mortgage insurance costs.

Why 2026 Is a Key Year for Jumbos

The FHA HECM lending limit for 2026 increased to $1,249,125 — an uptick of only 3.25%, the slowest annual increase in more than a decade.  This smaller rise reflects the cooling in national home-price appreciation.

For years, HECM limits climbed rapidly as home values surged.  That cycle appears to have peaked.  The modest 2026 adjustment signals a slowing market, and many economists expect values to flatten or soften in high-priced regions.

What that means for you:

  • If your home is already above the HECM cap, waiting another year likely won’t increase HECM proceeds enough to make a difference.
  • With slower appreciation, jumbo programs may offer more usable equity today than the HECM formula will in the near future.
  • Homeowners who have been “just above” FHA limits now face the widest gap between HECM availability and jumbo availability in years.

This makes 2026 a particularly important year to review your options…

Did You Know?  With the slowest HECM limit increase in more than ten years, many higher-value homes now sit well beyond what FHA can reach.  Jumbo programs often fill that gap today.

When a Jumbo Can Make Sense Even Below the HECM Limit

In some cases, a jumbo reverse mortgage may still be helpful even if your home value is at or below the HECM limit.

Examples include:

The exact percentage of your home’s value you can borrow will depend on your age, current interest rates, and your property.

Did you know?  While jumbo reverse mortgages can offer much higher loan limits than a HECM, they are designed primarily for higher-value homes.  In practice, jumbo programs tend to make the most sense when a home’s value is above the FHA lending limit, or when the property does not meet FHA eligibility rules.  If your home value is close to the FHA limit and otherwise qualifies for a HECM, the difference in available funds may be modest.  This is why comparing the two options side by side is important before choosing a jumbo loan.

How Jumbo Reverse Mortgages Work in 2026

Several lenders offer jumbo reverse mortgages.  Because these are proprietary loans, they are not required to comply with HUD HECM rules.  That gives them flexibility, but also means you must pay close attention to the specific terms offered.

Typical features you may see on jumbo reverse mortgage programs in 2026:

  • Minimum ages as low as 55 in some states
  • Willingness to lend on non-FHA-approved condo units
  • The option to take the full loan amount as a lump sum at closing
  • Some programs that include open lines of credit instead of a lump sum only
  • No FHA mortgage insurance premiums

At the same time, many jumbo programs mirror important HECM protections:

  • Non-recourse protection, so neither you nor your heirs owes more than the value of the home when it is sold
  • Counseling requirements prior to closing
  • The same basic occupancy rules: the home must remain your primary residence, and you must stay current on taxes, insurance, and basic maintenance

Some jumbo programs allow borrowers as young as 55, which is seven years earlier than the minimum HECM age of 62, where state law permits.

Did you know?  Because jumbo reverse mortgages involve larger loan amounts, lenders apply stricter valuation standards.  Higher-value homes may require additional appraisal review, and in some cases, more than one appraisal.  When multiple appraisals are ordered, lenders typically rely on the lower of the two values.  These rules are not meant to reduce borrower benefits, but to ensure consistent, supportable valuations for higher-risk loans. These valuation standards are common on high-balance mortgages and are not unique to reverse mortgages.

Refinancing Into a Jumbo Reverse Mortgage

Refinancing from a HECM or another reverse mortgage into a jumbo is not automatic.  Most jumbo programs require a seasoning period between reverse mortgage transactions and a clear financial benefit to the borrower.  This is designed to prevent unnecessary refinancing and protect borrowers from churning.  A jumbo refinance should improve the borrower’s position in a meaningful way.  This review helps ensure that refinancing improves long-term outcomes, not just short-term access to cash.

Jumbo Vs. HECM in 2026: Key Differences

FeatureJumbo Reverse MortgageFHA HECM Reverse Mortgage
Minimum Age55 (varies by lender and state)62
Max Lending LimitUp to $4,000,000 (some programs may allow more)$1,249,125 (HUD national limit)
Eligible Property TypesSingle-family, FNMA-warrantable condos, 1–4 unitsSingle-family, HUD-approved condos, 1–4 units
Upfront Access100% lump sum available at closingLimited (typically 60% or obligations + 10% in first year)
Line of Credit Features10-year draw period (no lifetime growth)Lifetime access with credit line growth
FHA InsuranceNo mortgage insurance premiums (MIP)Yes, MIP required (upfront and annual)
Younger Spouse ProtectionsVaries by lender – not guaranteedFully protected by HUD regulations
Use for Home PurchaseYesYes
Note: *HECM lump sum capped at 60% of Principal Limit or obligations + 10% in first 12 months.

2026 Jumbo Reverse Mortgage Loan-to-Value by Age

Youngest Borrower Age LTV % (Loan-to-value)Loan Amount on $1M HomeLoan Amount on $2M HomeLoan Amount on $3M Home
5539.10%$391,000$782,000$1,173,000
5639.30%$393,000$786,000$1,179,000
5739.50%$395,000$790,000$1,185,000
5839.70%$397,000$794,000$1,191,000
5940.10%$401,000$802,000$1,203,000
6040.40%$404,000$808,000$1,212,000
6140.70%$407,000$814,000$1,221,000
6241.00%$410,000$820,000$1,230,000
6341.40%$414,000$828,000$1,242,000
6441.90%$419,000$838,000$1,257,000
6542.40%$424,000$848,000$1,272,000
6642.90%$429,000$858,000$1,287,000
6743.50%$435,000$870,000$1,305,000
6844.00%$440,000$880,000$1,320,000
6944.60%$446,000$892,000$1,338,000
7045.30%$453,000$906,000$1,359,000
7146.00%$460,000$920,000$1,380,000
7246.80%$468,000$936,000$1,404,000
7347.70%$477,000$954,000$1,431,000
7448.70%$487,000$974,000$1,461,000
7549.70%$497,000$994,000$1,491,000
7650.80%$508,000$1,016,000$1,524,000
7751.60%$516,000$1,032,000$1,548,000
7852.40%$524,000$1,048,000$1,572,000
7953.40%$534,000$1,068,000$1,602,000
8054.40%$544,000$1,088,000$1,632,000
8155.60%$556,000$1,112,000$1,668,000
8256.90%$569,000$1,138,000$1,707,000
8358.10%$581,000$1,162,000$1,743,000
8459.00%$590,000$1,180,000$1,770,000
8560.00%$600,000$1,200,000$1,800,000
8660.30%$603,000$1,206,000$1,809,000
8760.60%$606,000$1,212,000$1,818,000
8860.80%$608,000$1,216,000$1,824,000
8961.00%$610,000$1,220,000$1,830,000
90-10061.10%$611,000$1,222,000$1,833,000
Loan-to-value percentages in this table are based on an interest rate of 8.99% (9.602% APR). Loan amounts are illustrative estimates rounded to the nearest thousand and may vary based on final loan terms, closing costs, and borrower qualifications.

2026 Jumbo Reverse Mortgage Rates and Maximum Loan Amount

Rate TypeRate/APRLending Limit
Fixed7.990% (8.068% APR)$4,000,000
Fixed8.950% (8.955% APR)$4,000,000
Fixed8.980% (9.132% APR)$4,000,000
Fixed8.990% (9.600% APR)$4,000,000
Adjustable9.079% (5.499 Margin)$4,000,000
Adjustable9.205% (5.625 Margin)$4,000,000
Adjustable9.329% (5.749 Margin)$4,000,000
Adjustable9.330% (5.750 Margin)$4,000,000
Adjustable9.455% (5.875 Margin)$4,000,000
Adjustable9.570% (5.990 Margin)$4,000,000
Note: Fixed: Lump Sum only. Adjustable: Lump Sum or Line of Credit. APR for a 70-year-old, $1M loan in CA.

Expert Insight from Michael Branson, CEO: “If your home is well above FHA limits, a jumbo loan can unlock far more equity while still protecting you with non-recourse features.”

Who Should Be Cautious About a Jumbo Reverse Mortgage

A jumbo reverse mortgage is not the right solution for everyone.  Homeowners who expect to sell within a few years, prioritize FHA insurance protections such as the guaranteed line of credit growth rate, or whose home value is close to the FHA lending limit may find that a HECM is a better fit.  The best choice depends on your goals, timeline, and how you plan to use the funds.

Pros & Cons

Pros
  • 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 and features offered on any programs you are researching since private loans may not necessarily include a specific feature that is important to you (i.e., the draw period we discussed earlier is only 10 years on the jumbo product).

  • 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 loan amounts as they are available based on their full home value.  For owners of high-valued homes, their loan is determined by their property value.  They are not capped at a percentage of the HUD lending limit even though their property value far exceeds that lending limit.

Cons
  • 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 protections that HECMs do.  It’s important to consult with trusted advisors and understand the loan terms and protections offered by your lender.  This is also why draw periods are limited to 10 years (borrowers taking full draws or substantially full draws at closing eliminate this concern).

  • 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 (especially earlier in the loan term), 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.[/i2pros]


Jumbo vs HECM: Which May Be a Better Fit?

A jumbo reverse mortgage may be worth exploring if:

  • Your home value is well above the HECM lending limit
  • Your property does not meet FHA guidelines
  • You want access based on your full home value, not a capped limit
  • You are comfortable with private-lender terms and disclosures

A HECM reverse mortgage may be a better choice if:

  • Your home value is near or below the HECM lending limit
  • You want standardized HUD protections and insurance
  • You value long-term line of credit growth
  • Protecting a younger or non-borrowing spouse is a priority

Neither option is universally better.  The right solution depends on your specific situation, not just the loan size.

Jumbo Reverse Mortgage Market History and 2026 Outlook

The jumbo reverse mortgage market has evolved and has been influenced by various factors.  After the 2008 housing crash, many jumbo reverse mortgage products disappeared.

However, several new jumbo products have been introduced in recent years, offering different rates, terms, and features, thanks to low interest rates and changes to the FHA lending limit.

If you are considering a jumbo reverse mortgage, comparing lenders on the specific terms they offer is essential.  Important details include the maximum amount you can borrow, how you will receive the loan proceeds, and the protections available for non-borrowing spouses, if applicable.

Understanding these factors will help you make an informed decision.

Expert Insight from Michael Branson, CEO: “Today’s jumbo market is healthier and more transparent than it was pre-2008, offering borrowers a greater variety of programs than ever before.”

In-Depth FAQ

Q.

What is a jumbo reverse mortgage?

A jumbo reverse mortgage is a proprietary loan designed for homeowners seeking amounts larger than those provided by the federally insured Home Equity Conversion Mortgage (HECM).  Unlike HECM loans, which only recognize home values up to the HUD lending limit of $1,249,125, jumbo reverse mortgages can accommodate property values as high as $10 million.  This makes them attractive to individuals with high-value homes who want to leverage more of their equity.
Q.

What is the difference between a HECM and a jumbo reverse mortgage?

A HECM is federally insured by the FHA and follows standardized HUD rules, while a jumbo reverse mortgage is privately funded and follows lender-specific guidelines. HECMs include built-in protections like non-borrowing spouse safeguards, a growing line of credit, and lifetime payment options.  Jumbo reverse mortgages allow higher loan amounts on higher-value homes but do not offer the same federal insurance or consumer protections.
Q.

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 on homes with values as low as $450,000.  In contrast, Jumbo programs usually benefit those high-valued homes more than the HUD lending limit of $1,249,125.

Q.

How much can you get from a jumbo reverse mortgage?

The amount you can receive from a jumbo reverse mortgage depends on your age and your home’s value, according to the 2026 Jumbo Reverse Mortgage Loan-to-Value (LTV) Chart.  The LTV percentage increases with age.  For instance, if you are 75 years old and your home is valued at $2,000,000, the LTV ratio is 49.7%.  Applying this ratio, you could be eligible for a loan amount of approximately $994,000.  To find out how much you could get, multiply your home’s value by the LTV percentage corresponding to your age from the chart.
Q.

What are the rates for jumbo reverse mortgages?

The interest rates for jumbo reverse mortgages are subject to change at any time without notice, as are all interest rates for all mortgage loan types.  As of December 16, 2025, jumbo reverse mortgage rates range from 7.990 to 9.570.  The rates will vary depending on the product type and the loan-to-value being offered.  The higher the loan-to-value offered, the higher the interest rate.
Q.

What is the maximum jumbo reverse mortgage?

The maximum jumbo reverse mortgage is typically $4,000,000.  There are a number of different products with different available loan-to-values, but the majority of products will top out at $4,000,000.
Q.

Can you get a jumbo reverse mortgage line of credit?

Yes.  In 2026, Jumbo Products will experience two exciting expansions, including expanded loan limits and the ability to use available proceeds as an open line of credit. (Previously, only a single lump sum disbursement was permitted.)
Q.

What are the disadvantages of a jumbo reverse mortgage?

A jumbo reverse mortgage has some disadvantages compared to the traditional Home Equity Conversion Mortgage (HECM).  The first disadvantage is that the Federal Government does not insure the loan programs; therefore, the funds are not guaranteed to be available to the borrower if they elect a line of credit option.  This disadvantage can be countered by opting for a fixed-rate lump sum to obtain all proceeds right away.  The second disadvantage of jumbo reverse mortgages is that they typically have higher interest rates than the HECM program, which can lead to faster equity erosion.
Q.

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, and proprietary options to suit your individual needs.
Q.

How long does it take to process a jumbo reverse mortgage?

Most jumbo loans usually take 30 days.  If you are in an area where appraisers are scarce or highly backed up, or if your value is over $2,000,000 (requiring 2 appraisals), I would tell you to plan for up to 60 days.  In some cases, we can get all the third-party services to act quickly and close sooner.
Q.

What about my property tax and insurance with a jumbo reverse mortgage?

As the property owner, you are responsible for paying 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 the life of the loan.  HUD has a process to do this, but the Life Expectancy Set Aside (LESA) can amount to tens of thousands of dollars.
Q.

Are jumbo reverse mortgages still non-recourse?

Yes.  Jumbo reverse mortgages are non-recourse loans, meaning neither the borrower nor the heirs will owe more than the home’s value when it is sold, even if the loan balance exceeds that value.
Q.

Can you have more than one jumbo reverse mortgage?

No.  You can have only one reverse mortgage at a time.  The loan must be on the home you use as your primary residence.  That would be determined by the home where you spend most of your time, the one to which your driver’s license is connected, all your banking accounts, and where you are listed as living on your tax returns, etc.
Q.

Can I rent rooms privately, with a rental company, or Airbnb if we have a jumbo reverse mortgage?

Jumbo loans, which are private reverse mortgages, are not subject to the same rules as the HUD HECM mortgage.  Each investor who offers the loans sets its own rules; therefore, you need to verify the restrictions in your loan documents.  Check the legal documents to see whether this topic is covered and what restrictions apply.  If you are still unsure after reading everything, you can always contact the lender directly and request that they send you the specific document(s) that address any renters in your home while you live there, and you can also 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).

Ready to tap into more home equity with a jumbo reverse mortgage?  The right choice isn’t about getting the biggest number.  It’s about choosing the option that fits your home, your plans, and your comfort level with long-term protections. If you want to compare both options side-by-side using real-time rates and current 2026 limits, you can get an instant quote here or call us Toll-Free at (800) 565-1722.  We’re here to help you make an informed decision you can feel good about.

Additional Resources: