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Jumbo Reverse Mortage

Jumbo Reverse Mortgage Options

Seniors with higher value Homes in California and elsewhere may benefit from new jumbo reverse mortgage options. Standard HECM loan limits were also raised over $40,000 effective in January 2018.

Jumbo Reverse Mortgage Options are now more competitive

  • Principal limits to $4.0 million
  • Rates between 5.99% and 7.00% depending on loan to value
  • No mortgage insurance
  • Condos; Single Family and 2 -unit homes
  • Same Financial Assessment as the FHA HECM Loan

One limitation is that jumbo loans require all available proceeds to be taken either as a lump sum at closing net of any current obligations or at least 60% at closing and remainder over a 12-60 month period.  

Standard HECM reverse mortgage max claim amount is $679,650 effective January 2018 an increase of just over $43,000.  

The loan limit increase is helpful if your home value is more than the previous limit of $636,000 as you would then capture a bit more of your home value up to $679,650.  It partially offsets the decreases in principal limit put in place in October 2017.

With property values up the change may provide access to additional resources – that can be helpful to reach retirement goals.  

We can help outline how your retirement plans might benefit from the strategic use of a reverse mortgage!  Please give us a call or send an email.