Today, the two most popular types of reverse mortgages on the market are the Home Equity Conversion Mortgages (Insured by the FHA), and Jumbo or proprietary reverse mortgages. The former you are most likely familiar with, having seen a number of television ads with celebrities touting the benefits of the the ‘reverse mortgage’. However, jumbo reverse mortgages have returned in a big way.
The good news is that homeowners of higher-valued properties looking to incorporate their home equity in retirement-one that allows them to tap into considerably more of their home’s value.
Jumbo reverse mortgages are designed for homeowners of higher-valued properties that exceed the federal lending limit, helping them access a larger portion of their home’s value. Those over the age of 55-60 with significant equity in a higher-value home could be ideal candidates for a private jumbo reverse mortgage.
Contact me today to learn more or for an assessment of your unique situation.
Unique features of a jumbo reverse mortgage:
While Jumbo reverse mortgages have many similarities to the traditional reverse they are unique for a number of reasons. One of the most notable is that many jumbo reverse loans offer loan amounts as high as $4 million. In addition, property values are considered up to $10 million with some lenders. Another is that these private mortgages do not charge the significant FHA mortgage insurance premiums that are required on the traditional Home Equity Conversion Mortgage- one of the traditional reverse mortgage’s most significant closing costs and ongoing charges.
A jumbo reverse mortgage is a private or proprietary loan which means the loans terms, conditions and guarantees are established by the lender versus the typical federally- insured reverse mortgage which is administered by HUD and insured by the Federal Housing Administration.
Here are some of the features of today’s jumbo reverse mortgages (features and benefits vary by the issuing bank and jumbo loan product chosen).
Loan amounts to $4,000,000
Property Values to $10,000,000
No first year distribution limitations
Flexible disbursement options
Contact me today to learn more or for an assessment of your unique situation.
This material is not provided by, nor was it approved by the Department of Housing & Urban Development (HUD) or by the Federal Housing Administration (FHA). It is not intended to be a substitute for legal, tax or financial advice. Consult with a qualified attorney, accountant or financial advisor for additional legal or tax advice.
*There are some circumstances that will cause the loan to mature and the balance to become due and payable. The borrower(s) must continue to pay for property taxes and insurance and maintain the property to meet HUD standards or risk default. Credit is subject to age, minimum income guidelines, credit history, and property qualifications. Program rates, fees, terms and conditions are not available in all states and subject to change.
