Jumbo Reverse Mortgage Options

See What You May Qualify For, With Loan Amounts Up to $4 Million

ARLO™

REVERSE MORTGAGE
ASSISTANT

2026 Jumbo Reverse Mortgage Guide: Eligibility, Rates & Loan Limits

December 16, 2025

Michael G. Branson Edited by

Cliff Auerswald

16 comments

Introduction

Many homeowners with higher-value homes are discovering that the FHA-insured Home Equity Conversion Mortgage (HECM) no longer unlocks the equity they expected. As home values have risen well beyond federal lending caps in many markets, the gap between a home’s value and what a HECM can access has grown.

This is where jumbo reverse mortgages may come into play. These loans are privately funded and are not insured by the Federal Housing Administration. Because they are not bound by FHA limits or property rules, they can offer higher loan amounts, added flexibility, and financing options for certain homes that do not meet FHA standards.

In my 20+ years specializing in reverse mortgages, I’ve guided thousands of homeowners through this decision. The most important lesson I’ve learned: the loan with the biggest number isn’t always the best choice for your situation. This guide will help you understand not just what you can borrow, but what you should consider before borrowing.

This guide explains how jumbo reverse mortgages work, how they compare to HECMs, and why 2026 may be an especially important time to review your options—but also when a HECM might still be the better fit, even for a higher-value home.

Quick Summary:

Designed for homeowners with higher-value properties, often above the $1,249,125 FHA lending limit
Privately funded and not FHA-insured (different protections apply)
May offer higher loan amounts, but typically at higher interest rates and with a limited 10-year draw period for lines of credit
Best evaluated side by side with a HECM before making any decision
The right choice depends on your individual circumstances, long-term goals, and how you plan to use the funds—not just the loan size

Table of Contents

• What Is a Jumbo Reverse Mortgage?

• Why 2026 Is a Key Year for Jumbos

• When a Jumbo Can Make Sense Even Below the HECM Limit

• Real Scenarios – When Jumbo Makes Sense (and When It Doesn’t)

• Counseling Requirements for Jumbo Reverse Mortgages

• Refinancing Into a Jumbo Reverse Mortgage

• Jumbo Vs. HECM: Key Differences

• Jumbo Reverse Mortgage Loan-to-Value by Age Chart

• Today's Jumbo Reverse Mortgage Rates

• Who Should Be Cautious About a Jumbo Reverse Mortgage

• Jumbo vs HECM: Which May Be a Better Fit?

• In-Depth FAQ

• Jumbo Reverse Mortgage Market History and 2026 Outlook

What Is a Jumbo Reverse Mortgage?

A jumbo reverse mortgage is a privately-funded loan designed for homeowners with higher-value properties who need access to more equity than the FHA HECM program can provide.

Unlike a HECM, which caps the amount it recognizes at the national FHA lending limit of $1,249,125, jumbo reverse mortgages can provide loans based on home values up to $4 million or more, depending on the lender and your home’s appraised value.

Here’s what makes them different from HECM loans:

What Jumbo Programs Offer:

Eligibility starting at age 55 in certain states (vs. 62 for HECM)
Financing for many non-FHA-approved condominiums
Full access to available funds at closing (no 60% first-year limitation)
No FHA mortgage insurance premiums (MIP)
Higher loan limits based on your full home value, not a federal cap

What You Give Up vs. HECM:

No FHA insurance that guarantees certain safeguards, such as access to your funds for life
Line of credit has a 10-year draw period (not lifetime like HECM)
Line of credit grows at 1.5% for 7 years (vs. note rate + 0.5% for life with HECM)
Typically higher interest rates (currently 7.99%-9.52% vs. HECM rates)
Non-borrowing spouse protections vary by lender (not federally guaranteed)
Fewer standardized consumer protections

From 20+ Years of Experience: I’ve seen jumbo reverse mortgages transform retirement for homeowners in high-value properties, particularly in markets like California, New York, and Florida. However, I’ve also counseled clients who chose HECM over jumbo despite having homes valued at $2+ million, because HECM’s lifetime line of credit growth and federal protections better matched their long-term plans. The key is understanding what matters most to you.

Why 2026 Is a Key Year for Jumbos

The FHA HECM lending limit has been 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 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:

Non-FHA approved condos that are acceptable to the jumbo investor
Certain properties with accessory units or other features that fit private guidelines more easily than HUD property requirements
Borrowers who value full lump-sum access up front more than the HECM line of credit growth feature

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.

Real Scenarios – When Jumbo Makes Sense (and When It Doesn’t)

Understanding Jumbo Through Real Examples

Note: These are real examples based on scenarios we’ve encountered. Individual results vary.

Scenario 1: The Right Fit for Jumbo

The Situation:
Maria and Robert, both 72, own a $3 million home in San Diego with significant mortgage payments. They need funds to:

Pay off a mortgage ($750,000)
Fund long-term care insurance premiums ($250,000)
Establish emergency reserves ($400,000)

Why Jumbo Worked:

HECM would cap their borrowing at $550,864 (based on $1,249,125 limit)
They needed full access immediately (jumbo allows this, whereas the HECM limits you to 60% in the first year)
Their children supported the decision and didn’t expect full home value inheritance
They could comfortably afford property taxes and insurance

The Numbers:

Jumbo loan amount: $1,404,000 at 8.99% APR
After 10 years (if no additional draws): loan balance approximately $3,438,000
Estimated home value in 10 years: $4,440,000(assuming 4% annual appreciation)
Remaining equity: $1,002,000

Scenario 2: When HECM Was Better Despite Higher Home Value

The Situation:
James, 68, owns a $1.8 million home in Scottsdale. He needs $150,000 now for home improvements, wants access to more funds later if needed, and wants to protect his 62-year-old wife, Sarah.

Why HECM Won:

HECM provided $408,495 available (enough for his needs)
Growing line of credit gave him confidence for the future unknown
HUD guaranteed Sarah could stay in the home and continue borrowing from the line of credit for her lifetime as the HECM line of credit is guaranteed as long as one borrower remains in the home
Lower interest rate (5.5% vs. 8.99%)
Even though he “qualified” for more with jumbo, he didn’t need the extra amount

What He Learned: “I almost went with jumbo because the loan officer emphasized I could get $1,230,000 instead of $408,495. But when I sat down with my financial advisor, we realized I didn’t actually need that extra $822,000—and borrowing it would have cost me an extra 3.5% in interest on money I wasn’t using.”

Scenario 3: When Neither Was Right

The Situation:
Linda, 66, owns a $2.5 million home in Miami and wanted $600,000 to invest in her daughter’s business.

Why We Advised Against It:

The business was high-risk with no guarantees
She had other assets she could tap without putting her home at risk
Her property taxes were $28,000/year—a concern if the business failed
She planned to downsize in just 3 years (wouldn’t recoup closing costs)

The Alternative: Linda ultimately used a combination of taxable account withdrawals and a traditional home equity line at a lower rate, preserving her home as a safety net. When Linda decided to downsize, we closed Purchase Reverse Mortgage (H4P) on her new home, allowing her to buy without paying all cash, preserving her liquidity in retirement without taking on a mortgage payment.

Counseling Requirements for Jumbo Reverse Mortgages

This counseling is designed to make sure you understand:

How a reverse mortgage works
Your responsibilities as a homeowner
How the loan may affect your future and your heirs
How a jumbo loan compares to an FHA-insured HECM

How jumbo counseling differs from HECM counseling

HECM counseling is required by HUD and must be completed before an FHA case number is issued
Jumbo counseling is required by the lender or investor, not HUD, but serves the same consumer-protection purpose
The counselor must be independent and approved by the Jumbo program

Who typically must attend counseling

All borrowers on the loan
In most cases, any non-borrowing spouse on title
Anyone with a legal ownership interest in the home at the time of application

How long counseling is valid

HECM counseling certificates are valid for 180 days
Jumbo counseling certificates are often valid for up to 12 months, depending on the program and state

Counseling is not a sales call. The counselor does not work for the lender and cannot steer you toward a specific loan. The goal is simply to make sure you are informed and comfortable before moving forward.

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 rather than just providing short-term access to cash.

Jumbo Vs. HECM: Key Differences

Feature	Jumbo Reverse Mortgage	FHA HECM Reverse Mortgage
Minimum Age	55 (varies by lender and state)	62
Max Lending Limit	Up to $4,000,000 (some programs may allow more)	$1,249,125 (HUD national limit)
Eligible Property Types	Single-family, FNMA-warrantable condos, 1–4 units	Single-family, HUD-approved condos, 1–4 units
Upfront Access	100% lump sum available at closing	Limited (typically 60% or obligations + 10% in first year)
Line of Credit Term	10-year draw period	Lifetime draw period
Line of Credit Growth Rate	1.5% for 7 Years	Note Rate + .50 MIP for Life
FHA Insurance	No mortgage insurance premiums (MIP)	Yes, MIP required (upfront and annual)
Younger Spouse Protections	Varies by lender – not guaranteed	Fully protected by HUD regulations
Use for Home Purchase	Yes	Yes
Note: *HECM lump sum capped at 60% of Principal Limit or obligations + 10% in first 12 months.

Jumbo Reverse Mortgage Loan-to-Value by Age Chart

Youngest Borrower Age	LTV % (Loan-to-value)	Loan Amount on $1M Home	Loan Amount on $2M Home	Loan Amount on $3M Home
55	39.10%	$391,000	$782,000	$1,173,000
56	39.30%	$393,000	$786,000	$1,179,000
57	39.50%	$395,000	$790,000	$1,185,000
58	39.70%	$397,000	$794,000	$1,191,000
59	40.10%	$401,000	$802,000	$1,203,000
60	40.40%	$404,000	$808,000	$1,212,000
61	40.70%	$407,000	$814,000	$1,221,000
62	41.00%	$410,000	$820,000	$1,230,000
63	41.40%	$414,000	$828,000	$1,242,000
64	41.90%	$419,000	$838,000	$1,257,000
65	42.40%	$424,000	$848,000	$1,272,000
66	42.90%	$429,000	$858,000	$1,287,000
67	43.50%	$435,000	$870,000	$1,305,000
68	44.00%	$440,000	$880,000	$1,320,000
69	44.60%	$446,000	$892,000	$1,338,000
70	45.30%	$453,000	$906,000	$1,359,000
71	46.00%	$460,000	$920,000	$1,380,000
72	46.80%	$468,000	$936,000	$1,404,000
73	47.70%	$477,000	$954,000	$1,431,000
74	48.70%	$487,000	$974,000	$1,461,000
75	49.70%	$497,000	$994,000	$1,491,000
76	50.80%	$508,000	$1,016,000	$1,524,000
77	51.60%	$516,000	$1,032,000	$1,548,000
78	52.40%	$524,000	$1,048,000	$1,572,000
79	53.40%	$534,000	$1,068,000	$1,602,000
80	54.40%	$544,000	$1,088,000	$1,632,000
81	55.60%	$556,000	$1,112,000	$1,668,000
82	56.90%	$569,000	$1,138,000	$1,707,000
83	58.10%	$581,000	$1,162,000	$1,743,000
84	59.00%	$590,000	$1,180,000	$1,770,000
85	60.00%	$600,000	$1,200,000	$1,800,000
86	60.30%	$603,000	$1,206,000	$1,809,000
87	60.60%	$606,000	$1,212,000	$1,818,000
88	60.80%	$608,000	$1,216,000	$1,824,000
89	61.00%	$610,000	$1,220,000	$1,830,000
90-100	61.10%	$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.

Today's Jumbo Reverse Mortgage Rates

Rate Type	Rate/APR	Lending Limit
Fixed	7.990% (8.068% APR)	$4,000,000
Fixed	8.950% (8.955% APR)	$4,000,000
Fixed	8.980% (9.132% APR)	$4,000,000
Fixed	8.990% (9.600% APR)	$4,000,000
Adjustable	9.029% (5.499 Margin)	$4,000,000
Adjustable	9.155% (5.625 Margin)	$4,000,000
Adjustable	9.279% (5.749 Margin)	$4,000,000
Adjustable	9.280% (5.750 Margin)	$4,000,000
Adjustable	9.405% (5.875 Margin)	$4,000,000
Adjustable	9.520% (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 offer borrower protections similar to those under the HECM program, such as the non-recourse feature, which means the borrower will not owe more 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 in any programs you are researching, since private loans may not include a 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 become available, based on their home’s full value. For owners of high-value 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 offer the same borrower protections as HECMs. 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 early in the loan term), borrowers will pass on less equity to their heirs than they would without a reverse mortgage. However, it’s important to note that if the borrower passes away, any remaining equity after the loan is paid off can be passed on to the designated heirs.

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.

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

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.

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 such as 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.

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 available on homes valued 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.

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.

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 January 2026, jumbo reverse mortgage rates range from 7.990 to 9.520. 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.

What is the maximum jumbo reverse mortgage?

The maximum jumbo reverse mortgage is typically $4,000,000. There are a number of products with varying loan-to-values, but most top out at $4,000,000.

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.)

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.

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.

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.

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.

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.

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.

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).

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.

A Final Word from Michael G. Branson: “In my 45 years in mortgage banking and 20 years focused exclusively on reverse mortgages, I’ve learned that the best loans are the ones borrowers understand completely and feel confident about. If you finish this guide and still have questions, that’s a good sign and means you’re thinking carefully about a major financial decision. The jumbo reverse mortgage market has matured significantly since 2008, offering more consumer protections and transparency than ever before. But these are still complex products that deserve serious consideration. Whether you ultimately choose a jumbo, a HECM, or decide a reverse mortgage isn’t right for you at all, I hope this guide has given you the information you need to make that decision wisely. If you have questions, we’re here to help. But more importantly, make sure you have a team of trusted, independent advisors helping you evaluate what’s truly best for your unique situation.”

Ready to learn more? If you want to compare both options side-by-side using real-time rates and current 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:

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

America's #1 Rated Reverse Lender Celebrating 20 Years of Excellence.

Have a Question About Reverse Mortgages?

Look no further. Michael G. Branson, our CEO, brings a wealth of knowledge directly to you. With a robust 45-year tenure in mortgage banking and 20 years dedicated solely to reverse mortgages, he's the expert you want on your side.

Post your question in the comments below and anticipate a personalized response from Mr. Branson himself, typically within one business day. He's here to illuminate all angles of reverse mortgages, ensuring you're equipped with the knowledge to make informed decisions. Take this opportunity to gain insights from a seasoned professional.

Over 2000 of your questions answered by ARLO™
Ask your question now!

16 Comments on this Article

Eric B.
August 19th, 2025

Michael, thanks for your insights in prior posts. I’m trying to help my 91-year-old dad stay in his seaside home on Cape Cod. He has listed it for $6.9 million because he says he’s outlived his money and needs to sell.I used the calculator, and with an LTV of 61.1% it doesn’t work. I’ve also looked into equity- and appreciation-sharing firms, but they don’t offer jumbo options. Can you point me in another direction that might work for this situation?
Reply to Eric
- Michael Branson
  August 28th, 2025
  
  Hello Eric,
  Based on the numbers you mentioned, I don't see a way for your dad to stay in his current home using a reverse mortgage. The good news is that, given the high value, he likely still has substantial equity - around 40% by your estimate.
  A practical alternative is downsizing with a purchase reverse mortgage. He could sell his current home and buy a lower-priced property using a reverse mortgage (HECM for Purchase or a proprietary jumbo purchase, depending on price). That would allow him to live there for the rest of his life without making monthly mortgage payments (he would still be responsible for taxes, insurance, and upkeep).
  If he buys wisely, he may not need to use all of his equity for the next purchase, leaving additional cash to live on. I understand your goal may be to keep him in his current home, but the upside is that he has significant equity. A move could also be a chance to choose a home that better suits his needs if the current property is less than ideal (e.g., multi-story when single-level would be better, farther from family or medical services, or harder to maintain). It doesn't have to be all bad news if a relocation is necessary.
  Reply to Michael
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
- Michael Branson
  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 $1,149,825. 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 $1,149,825 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 Michael
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
- Michael Branson
  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 Michael
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
- Michael Branson
  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 Michael
Kyle
February 9th, 2022

Who covers the non recourse aspect (loan value exceeding home price) on jumbo reverse mortgages?
Reply to Kyle
- Michael Branson
  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 Michael
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
- Michael Branson
  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 Michael
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
- Michael Branson
  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 $1,149,825 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 $1,149,825 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 Michael
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
- Michael Branson
  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 Michael