Seniors with higher value Homes in California and elsewhere may benefit from jumbo reverse mortgage options. Standard HECM reverse mortgage loan limits top out at $765,600 in January 2020.
Jumbo Reverse Mortgage Options are competitive
- Principal limits to $4.0 million
- Rates between 5.875% and 6.750% 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 most jumbo loans require all available proceeds to be taken either as a lump sum at the closing, net of any current obligations, or at least 60% at closing and the remainder over a 12-60 month period. There is no low or no draw credit line option at this time for jumbo reverse mortgages.
Standard HECM reverse mortgage max claim amount is $765,600 effective January 2020.
The loan limit increase is helpful if your home value is more than the previous limit of $726,525 as you would then capture a bit more of your home value.
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.
Disclaimer: This material is not from HUD or FHA and has not been approved by HUD or a government agency.