A jumbo reverse mortgage, also called a proprietary reverse mortgage, is offered by private lenders instead of being insured by FHA. It is built for higher-value homes and for some properties that do not fit HECM rules.
When a jumbo reverse mortgage makes sense
- Your home is worth more than FHA’s HECM lending limit
- You own a condo that is not FHA-approved
- You want to avoid FHA mortgage insurance premiums
- You need more cash than a HECM would provide
How it differs from a HECM
- Not FHA-insured; terms are set by the lender
- No FHA mortgage insurance premium
- Loan amounts can be higher on higher-value homes
- Rules on line of credit growth, payout options and age can differ by lender
Borrower obligations are the same: live in the home, pay property taxes and insurance, and keep it in good repair.
Where these come up most
In Kansas and Missouri, jumbo reverse mortgages come up most in Johnson County, the Country Club Plaza and Mission Hills area, Ladue and Clayton in St. Louis County, and lake properties at Lake of the Ozarks that are used as a primary residence. Steve can compare a HECM and a jumbo side by side.
Common questions
Is a jumbo reverse mortgage non-recourse?
Most proprietary reverse mortgages are non-recourse, meaning you or your heirs will not owe more than the home is worth, but confirm the terms of the specific loan.
Do I still need counseling?
Many lenders require independent counseling for proprietary loans too, and it is a good idea either way.
Can I get a jumbo reverse mortgage on a lake home?
Only if it is your primary residence. Second homes and vacation properties do not qualify.
Related: How it works · Who qualifies · Costs · For families · FAQ · Service areas
Talk to a real person in Kansas City
Steve Clune is a licensed loan officer for Kansas and Missouri. Call or text with your questions. If you miss him, send a text and he’ll get back to you.