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.