Jumbo Reverse Mortgage Lenders

Jumbo Reverse Mortgage Lenders

The jumbo reverse mortgage space has grown and evolved considerably since the first jumbo reverse mortgage product was created in 2006. In 2025, jumbo programs have continued to strengthen.

In this article, you will learn:

• Differences between the jumbo reverse mortgage and the HECM reverse mortgage
• Comparison of different jumbo reverse mortgage programs
• How to decide if the jumbo reverse mortgage or the HECM reverse mortgage is better for you
• History of jumbo programs and the market outlook for jumbo reverse mortgage loans

What is a jumbo reverse mortgage?

A jumbo reverse mortgage loan is a reverse mortgage that is not subject to the Federal Housing Administration’s lending limit. Today, the Federal Housing Administration enforces a lending limit of $1,209,750.

The Federal Housing Administration’s lending limit of $1,209,750 in 2025 can be a major disadvantage to those who own higher-valued homes. The lending limit makes it impossible for homeowners of higher-valued homes to be able to access some of their home equity.

Because these loans are not insured by the Federal Housing Administration, there is no initial mortgage insurance premium (IMIP) to pay or ongoing mortgage insurance premium to pay (MIP). The initial mortgage insurance premium is 2% of the lesser of the property value or the lending limit.

Find out what you would have to pay in HECM IMIP (and if you can avoid paying it)

Key Facts

• Jumbo reverse mortgages are not subject to the $1,209,750 in 2025
• Jumbo reverse mortgages do not have initial mortgage insurance premium (IMIP)
• Jumbo reverse mortgages do not have ongoing mortgage insurance premium (MIP)

Jumbo reverse mortgage vs HECM

A jumbo reverse mortgage is fundamentally similar to the HECM reverse mortgage, but there are some key differences we have noted below.

When getting a quote, it is important to make sure you are speaking to a licensed jumbo reverse mortgage lender. South River Mortgage maintains active approvals with FHA and HUD as well as individual state regulators. Let’s make sure we can help you.

What is a proprietary reverse mortgage? Is it the same as a jumbo?

A proprietary reverse mortgage is a reverse mortgage that is not insured by the Federal Housing Administration. A jumbo reverse mortgage is a reverse mortgage where the loan amount exceeds the Federal Housing Administration’s lending limit.

You may hear these terms used interchangeably, and in practice, they are generally the same.

It is technically possible (although uncommon in practice) for a loan to be a proprietary reverse mortgage that has a loan amount that is less than the lending limit.

Jumbo Reverse Mortgage Pros and Cons

There are many items to consider when deciding to obtain a reverse mortgage. For the purposes of this article, we are comparing just the features of the loan products.

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What is the market outlook for jumbo reverse mortgages?

The market outlook for jumbo reverse mortgages is generally quite positive. These loans have been readily adopted by retirees. At the same time, lenders have continued to add more features and protections to jumbo reverse mortgage products.

While it is impossible to know what the future may hold, we are always working on additional improvements to continue to improve the strength of the jumbo reverse mortgage program.

Should I get a jumbo reverse mortgage loan or a HECM reverse mortgage?

In order to make an informed decision, it is important to get a quote that allows you to compare the jumbo reverse mortgage to the HECM loan for your individual situation. For instance, if the property is valued just above the lending limit, the better loan option may actually be the HECM, because a HECM might provide additional proceeds.

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When comparing loan options, we always suggest to consider your goals. Although this is not personal financial advice, these are some general items you may wish to consider or to discuss with a HUD-approved counseling agency:

• If you are looking to preserve equity, the HECM loan may prove to be more beneficial due to lower interest rates.
• If you are looking to maximize cash out, the jumbo reverse mortgage may prove to be more beneficial because there is no limit on first year proceeds.

What is the history of the jumbo reverse mortgage loan?

The jumbo reverse mortgage has been through a series of changes and improvements over the years. The first lender to offer the jumbo reverse mortgage loan was Financial Freedom Senior Funding in 2006. While Financial Freedom Senior funding is no longer in business today, they did pave the way for others to safely offer the jumbo reverse mortgage.

Unfortunately, many lenders who offered jumbo reverse mortgages are no longer in business today.

• Financial Freedom Senior Funding, who offered the Cash Account, closed its doors in 2011 after being placed in conservatorship.
• American Advisors Group, who offered the AAG Advantage, closed its doors in December 2022.
• Reverse Mortgage Funding, who offered the EquityElite (formerly EquityEdge) products closed its doors in November 2022.

Historically, South River Mortgage has taken a cautious and careful approach to offering jumbo reverse mortgages. South River Mortgage launched the HomeForLife reverse mortgage in January 2022.

What lenders offer jumbo reverse mortgage loans?

The jumbo reverse mortgage loan is a much newer option than the HECM. The HECM has been in place since [], and the jumbo reverse mortgage became available (although less common) in 2006.

Because the jumbo reverse mortgage loan is a much newer option than the HECM loan, there are fewer jumbo reverse mortgage programs and lenders offering these programs:

What interest rates are available for a jumbo reverse mortgage?