Jumbo reverse
mortgages.

What Is a Jumbo Reverse Mortgage?

The FHA HECM has a maximum claim amount ($1,249,125 for 2026). For homeowners with higher-value properties, a proprietary (private) jumbo reverse mortgage — not FHA-insured — may allow access to more equity. Private lenders set their own terms and limits.

• Proprietary program — not FHA-insured
• Designed for properties exceeding HECM limits
• 2026 HECM maximum claim: $1,249,125
• Private lenders set their own limits

Key Considerations

Like standard reverse mortgages, proprietary programs generally require age eligibility and primary residence occupancy. No monthly principal/interest payments are required. Terms, fees, and eligibility criteria are set by individual private lenders.

• Age eligibility requirements apply — varies by program
• Primary residence required
• No monthly P&I payments required
• Consult a licensed MLO for program details

What a jumbo reverse mortgage is

A reverse mortgage lets homeowners aged 62+ (55+ on some proprietary programs) convert home equity into cash — as a lump sum, a line of credit, or monthly draws — with no required monthly mortgage payment; the loan repays from the home's value when the owner sells, moves out, or passes away. The federally insured version (HECM) is capped by the FHA lending limit. A jumbo reverse mortgage is the proprietary, privately funded version built for homes worth more than the HECM program can serve — allowing qualified owners of high-value homes to access substantially larger amounts, in some programs on values into the many millions.

Because these are proprietary products, features vary by issuer: minimum age, available draw structures, and the share of value accessible all differ program to program.

How it compares to the federal HECM

• Loan size: the jumbo version's reason to exist — proceeds far beyond the HECM cap on high-value homes.
• Insurance premiums: HECMs charge FHA mortgage-insurance premiums; most jumbo reverses do not, which can reduce cost on large draws.
• Protections: HECM carries specific federal protections (e.g., its line-of-credit growth feature); proprietary programs replicate some, not all — read the specific contract.
• Counseling: independent counseling is required for HECMs and required or strongly standard on proprietary programs — a feature, not a hurdle.

Obligations under both: keep taxes, insurance, and maintenance current, and occupy the home as your primary residence. Failure on these — not missed payments, which don't exist — is what can trigger default.

Who should (and shouldn't) consider one

The strong use case is an owner of a high-value, low-debt home who wants retirement liquidity without selling and without a new monthly payment — especially where portfolio assets are better left invested. The weak use case is short expected tenure in the home (accrued interest is front-loaded against your equity), or where heirs' plans for the property matter more than liquidity. This product family deserves unhurried analysis alongside alternatives — a HELOC, downsizing, or a conventional cash-out — and conversations with family and advisors. We're glad to lay the options side by side without pressure; that is the standard of care this decision requires. Licensed broker, NMLS# 1967971.

Quick answers

Do my heirs inherit the debt?

Heirs inherit the home subject to the loan — they can repay it (often by refinancing or selling) and keep any remaining equity. On HECMs, non-recourse protection means the debt never exceeds the home's value; proprietary programs typically include similar provisions — confirm in the contract.

Can I outlive a reverse mortgage?

No — the loan has no maturity tied to your lifespan. It stays in place as long as you occupy the home and keep taxes, insurance, and maintenance current.

Is the money taxable?

Loan proceeds are not income — they are borrowed money, generally received tax-free. Coordinate with your tax advisor on interactions with benefits and deductions.