Jumbo Reverse Mortgages

Proprietary Reverse Mortgage

If you are a homeowner to a higher-valued estate, you may earn a bigger loan advance through a Jumbo Reverse mortgage ( which is a proprietary reverse mortgage program). The Jumbo program reaps you a diverse range of benefits. It does not require continuous monthly payments, which makes this program even better. It holds reduced interest rates and lower principal limits.

Looking for experts to guide you through it all? Contact our team today!

Homeowners who are of age 62 and over have gained a whole lot from the HUD Home Equity Conversion Mortgage or HECM despite the fact that the reverse mortgage program did go through a rough patch.

In order to sustain the program, the Department of Housing and Urban Development (HUD) had to make various moves that rendered the program a lot more difficult to qualify for and then reduced principal limits as well.

As of October 2, 2017, the changes that took effect had a two-fold effect, first off, principal limits were lowered, and lowering the interest rate floor resulted in borrowers getting even less money out of the program.

Jumbo & Proprietary Programs Expansion

The losses that the HECM program experienced can be traced to borrowers who could no longer afford their home even after taking out the reverse mortgage.

Borrowers who defaulted on insurance and taxes didn’t help either and then to compound the problem, plummeting market values.

Borrowers who rely on federally-insured loans placed the Mortgage Insurance Fund at risk and the HUD had to rise to the occasion.

One of the desirable developments that emerged from the changes made by the HUD includes the return of jumbo & Proprietary Reverse Mortgage programs. For a larger portion of borrowers, the jumbo programs just wasn’t it.

More often than not, borrowers whose homes were worth less than $765,600 got more money out of the HUD programs and at lower rates too!

But with the changes that the HUD put in place, it provided a leeway for proprietary loans to make another entry into the market with a product that was well suited to homeowners who have their home’s value pegged above the lending limit of $765,600.

Reducing interest rates for several months has begun to make the jumbo Reverse Mortgage loans appear very attractive.

A drop in the fees and an attractive range of products being offered are tempting to many a homeowner.

Jumbo Reverse Mortgage Calculator

It is quite hard to find a reliable jumbo reverse mortgage calculator online. The reason behind this is, there are only very few jumbo reverse mortgage lenders that offer this loan.

The percentage of the appraised value that you receive is almost similar in every case, that is, irrespective of the jumbo lenders. The difference in the percentage that the jumbo reverse mortgage lenders offer is very small. Therefore, there is no good jumbo reverse mortgage calculator online.

As a certified reverse mortgage broker, we work with several jumbo mortgage lenders and can offer you the best deal. 

So,  check out our estimations and learn about what suits you best.

Jumbo Reverse Mortgage Closing Costs 

The jumbo program does not require upfront and continuous monthly payments of mortgage insurance, making the program even more appealing.

The upfront mortgage insurance that usually requires paying with the HECM loan is calculated to be around 2% of home value while the lending limit of $765,600 still persists.

This implies that borrowers using the jumbo program would save $15,312.00 on closing costs as against the HECM.

Jumbo Reverse Mortgage Interest Rates 

Jumbo rates that used to be as high as 7.50% have come down as low as 4.99% and do not mandate the payment of extra monthly insurance charges that are typically mandatory for any government HECM plan.

While a monthly mortgage isn’t regarded as interest, it still accrues in a similar manner, so a jumbo loan would save you this cost.

Removing the monthly mortgage insurance of .50% charged by the HUD, and then taking into cognizance the reduced rates, the jumbo reverse mortgage loan becomes thoroughly attractive.

Rates for Jumbo & Proprietary Programs 

Fixed RateAdjustable RateLending Limit
5.95% (6.125% APR)5.121% (4.875 Margin)$3,000,000
6.075% (6.075% APR)5.33% (4.99 Margin)$3,000,000
6.50% (6.625% APR)5.46% (5.124 Margin)$3,000,000
6.99% (6.99% APR)5.58% (5.240 Margin)$3,000,000

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: 3-Mo. Libor

Lifetime Cap: 3% Over Start Rate

Massive Payouts 

The jumbo reverse mortgage guarantees that borrowers would receive a higher amount of money as a portion of their home value, thereby providing an improved loan-to-value ratio.

Unlike previous occasions, your home doesn’t have to be worth up to $1,500,000 before the loan seems fair. More borrowers can use this option now.

Jumbo Fixed Rate Loan-to-Values    

Current Rates5.950% (6.125% APR)6.750% (6.875% APR)6.99% (7.00% APR)7.125% (7.250% APR)
Borrower AgeLoan-to-valueLoan-to-valueLoan-to-valueLoan-to-value
6229.6%31.0%39.6%41.1%
6532.6%34.0%42.1%43.6%
7035.9%37.3%46.4%47.9%
7539.3%40.7%50.1%51.6%
8044.1%45.5%54.0%55.5%
8548.4%49.8%57.6%59.1%
9050.6%52.0%60.5%62%

Loan-to-Values (LTV) Tables as of 04/22/2020

Available Payout: Lump Sum

*To calculate your loan amount divide your home value into the LTV percentage.

E.g., $2,000,000 value, age 70 at 6.99% rate = 46.4% LTV or $928,000 loan amount.

Loan-to-values (LTV) are subject to change without notice & exceptions may be granted.

Jumbo Line of Credit Loan-to-Values

ProgramsHomeSafePlatinum
Borrower AgeLoan-to-valueLoan-to-value
6239.6%39.6%
6542.1%42.1%
7046.4%46.4%
7550.1%50.1%
8054.0%54.0%
8557.6%57.6%
9060.5%60.5%

Loan-to-Values (LTV) Tables as of 04/22/2020

Available Payout: Line of Credit or Lump Sum

*HomeSafe® jumbo reverse mortgage is offered by Finance of America and American Advisors Group. Platinum® jumbo reverse mortgage is offered by Longbridge Financial.

*To calculate your loan amount divide your home value into the LTV percentage.

E.g., $2,000,000 value, age 70 at 5.92% rate = 47.4% LTV or $948,000 available line of credit.

Considering the better offer that the jumbo program now provides (higher loan amounts, lower fees, and rates as well as underwriting enhancements), it is a suitable option for seniors whose properties are valued at $765,600 and above.

While the new jumbo products may not be perfect for every single borrower, it does offer more options and increases the choices available.

It allows seniors an opportunity to access a scheme that takes into consideration the full value of their home up to $4 million.

Jumbo Mortgage Loan Limit

It’s already been established that a jumbo loan refers to a mortgage that goes above and beyond the limit that the FHA set for a particular area. For 2020, the Federal Housing Finance Agency increased the maximum conforming loan limit for a single-family property to $510,400 from $484,350. For high-cost areas, the maximum conforming loan limit is typically around $765,600.

These limits are typically binding on all conforming loans that toe the Fannie Mae or Freddie Mac guidelines. If you’re purchasing a home in 2020 using an FHA loan that has the backing of the Federal Housing Administration, then you would be bound by a different loan limit. In 2020, the FHA loan limit stands at $331,760. However, in about 70 high-cost counties, the $765,600 maximum loan limit still applies.

In essence, this would imply that any mortgage that goes beyond the baseline amounts mentioned is categorized as a jumbo loan in 2020. In addition, an FHA jumbo loan and a conventional jumbo loan differ to an extent.

Although $510,400 remains the standard limit for 2020, we may see variations occurring as a result of factors such as state lending limit, a difference in average home values as well as real estate market activity.

A clear example is the fact that every county in Hawaii and Alaska has a limit of $765,600 which is the maximum that it can be. American territories such as the U.S Virgin Islands and Guam have the same limit applying as well.

The table below comprises an overview of every state, county or territory that has its conforming loan limit above the standard $510,400.

Every other area not included on this list has its conforming loan limit at $510,400.

Locations Sporting a Conforming Loan Limit 
In Excess Of $510,400

 
State/Territory Counties Limit
AlaskaAll counties $765,600














California



Mono County


Placer County, El
Dorado County,
Sacramento County,
Yolo County


Santa Barbara County


Monterey County


San Luis Obispo County


San Diego County


Sonoma County


Ventura County


Napa County
$529,000



$569,250




$625,500


$672,750


$690,000


$701,500


$704,950


$713,000


$764,750












Colorado
Adams County,
Broomfield County,
Denver County,
Arapahoe County,
Douglas County, Elbert
County, Jefferson
County, Park County,
Clear Creek County,
Gilpin County


Lake County, San
Miguel County


Routt County


Boulder County


Eagle County


Pitkin County,Garfield
County




$575,000






$625,500



$638,250


$644,000


$750,950


$765,600
Connecticut
Strafford County,
Rockingham County
$690,000
Florida Monroe County$552,000
Georgia Greene County$515,200
HawaiiAll counties $765,600


Idaho
Blaine County, Lincoln
County, Camas County


Teton County
$625,500



$765,600





Maryland
Queen Anne’s County,
Anne Arundel County,
Howard County, Carroll
County, Baltimore
County, Baltimore City,
Harford County


Frederick County,
Montgomery County,
Prince George’s County,
Charles County



$520,950






$765,600




Massachusetts
Essex County,
Middlesex County,
Suffolk County, Norfolk
County, Plymouth
County


Dukes County

$690,000




$765,600
New Hampshire Fairfield County$601,450




New Jersey
Ocean County,
Monmouth County,
Middlesex County,
Somerset County,
Hunterdon County,
Morris County, Sussex
County, Passaic
County, Bergen
County, Essex County,
Union County, Hudson
County





$765,600





New York
Dutchess County,
Orange County


Putnam County,
Westchester County,
Rockland County,
Bronx County, New
York County, Kings
County, Queens
County, Nassau County,
Suffolk County

$726,525




$765,600

North Carolina
Camden County,
Pasquotank County,
Perquimans County
$625,5000
PennsylvaniaPike County $765,600





Tennessee
Dickson County,
Cheatham County,
Robertson County,
Sumner County, Macon
County, Trousdale
County, Smith County,
Wilson County,
Davidson County,
Williamson County,
Maury County,
Rutherford County,
Cannon County




$563,500




Utah
Tooele County, Salt
Lake County


Box Elder County,
Weber County, Davis
County, Morgan
County


Summit County,
Wasatch County
$600,300




$646,300




$762,450


















Virginia
Caroline County, King
and Queen County,
King William County,
New Kent County,
Hanover County,
Louisa County,
Goochland County,
Henrico County,
Charles City County,
Prince George County,
Colonial Heights City,
Chesterfield County,
Richmond City,
Powhatan County,
Cumberland County,
Amelia County,
Dinwiddie County,
Sussex County,
Petersburg City,
Hopewell City


Spotsylvania County,
Fredericksburg City,
Stafford County,
Fauquier County,
Culpeper County,
Madison County,
Rappahannock County,
Warren County, Prince
William County,
Manassas Park City,
Clarke County,
Loudoun County,
Alexandria City, Falls
Church City, Fairfax
City, Fairfax County,
Arlington County











$535,900
















$765,600

Washington,
D.C.
District of Columbia$765,600

Washington
State
Snohomish County,
King County County,
Pierce County

$741,750

West Virginia
Jefferson County, King
County County, Pierce
County

$765,600
Wyoming Teton County$765,600
U.S. Virgin
Islands

All areas

$765,600
Guam All areas$765,600
 

Properties Eligible for the Jumbo Loan and Other Considerations 

The properties that the jumbo programs are eligible for include single-family residences, two-unit properties provided that one unit is occupied by the borrower as well as condominium properties. And for condominium properties over $400,000, no special reverse mortgage condo approval from HUD is required.

Non-borrowing spouses are eligible, however, they do not get the type of protection that the HECM offers.

Non-borrowing spouses are allowed on with extra requirements like the borrower’s attorney and a court reporter in attendance to ensure that the terms are understood by all the parties involved.

Would you like to explore a Jumbo Reverse Mortgage for your situation? Call us at (844) 230-6679 if you live in one of the following states. As your local broker, we work with several lenders across different states and cities and provide required consultation service with no pressure or obligation.

For other states, contact a good reverse mortgage consultant who has originated a good number of reverse mortgage loans with a Broker License (NMLS) and preferably holds the designation ‘Certified Reverse Mortgage Professional (CRMP)’.

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HECM for Purchase

HECM for Purchase

What is a Home Equity Conversion Mortgage (HECM) and how is it different from HECM for Purchase (H4P Mortgage)? The Home Equity Conversion Mortgage (HECM)

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