Jumbo reverse mortgage
A jumbo reverse mortgage is mainly for homes valued above the 2026 HECM limit. This private loan, also called proprietary, has no FHA insurance.
- The $1,249,125 2026 HECM limit applies to home value
- During HUD's latest year, 1,491 HECMs reached the 2025 limit or higher
- 2% Upfront FHA insurance is not charged by a jumbo loan
With a jumbo reverse mortgage, lending can cover home value beyond $1,249,125. For 2026, this figure is the limit on the value a HECM counts. A proprietary reverse mortgage is a private loan governed by the lender's rules, rates and limits. It does not include FHA insurance.
If your home's value is well over the limit, a HECM may lend less than a jumbo loan can. The offer determines whether it lends more, so compare both loans on paper for a fair test.
Why HECM lending stops at the limit
A HECM counts no more than the limit toward your home's value. Any home value above the limit does not increase the amount counted. At age 70 with the calculator's default rate:
| Home value | Value the HECM counts | Principal limit | Available after costs |
|---|---|---|---|
| $450,000 | $450,000 | $173,700 | $155,200 |
| $1,500,000 | $1,249,125 | $482,162 | $447,679 |
| $2,000,000 | $1,249,125 | $482,162 | $447,679 |
A $2,000,000 home and a $1,500,000 home receive the same HECM. HUD's latest twelve months of data show 1,491 HECMs with maximum claim amounts reaching the 2025 limit of $1,209,750 or more. Jumbo loans target these owners. You can find the yearly limits on reverse mortgage limits.
How a jumbo reverse mortgage differs from a HECM
| Feature | HECM | Jumbo or private reverse mortgage |
|---|---|---|
| Backed by | FHA insurance | The lender alone |
| Home value counted | Up to $1,249,125 | Set by the lender, often far higher |
| Upfront mortgage insurance | 2% of the maximum claim amount | Not charged |
| Yearly mortgage insurance | 0.5% of the balance | Not charged |
| Origination fee | Capped at $6,000 | Set by the lender |
| Rates | HUD's factors, lender's margin | Lender's own, often higher |
| Minimum age | 62 | Set by the lender and state law |
| Payout | Line of credit, monthly, lump sum | Often a lump sum or credit line, varies |
| Counseling | Required | Often required by the lender or state |
A jumbo loan has no FHA mortgage insurance, so it does not charge the 2% upfront premium. At the HECM limit, that amount is $24,983. Because the lender bears the risk itself, rates are usually higher and the loan amount for each dollar of value can be lower.
Age rules on private reverse loans
Every borrower must be at least 62 years old for a HECM. Within state law, private lenders choose their own minimum age. The New York regulator says reverse mortgages there are generally available to owners who are 60 or older. Contact the lender and ask about the borrower age it accepts in your state.
What FHA protections include and what you should ask
Federal HECM protections cap what heirs owe at the home's value, include the 95% rule for heirs who keep it and set fee caps and uniform lender rules. A proprietary reverse mortgage offers only the terms stated in its contract. Ask these questions before you sign:
- Is the loan non-recourse, so heirs can never owe beyond the home's value?
- If the home's value falls below the debt, can heirs keep it without paying the full balance?
- If a spouse is not on the loan, what will happen to that spouse?
- Is the rate fixed or adjustable, and which margin applies?
- Does a credit line that stays unused grow, and what rate applies?
- What origination fee and closing costs apply, in writing?
- Do you pay a penalty if you pay the loan early?
When each loan pays more: jumbo or HECM?
When a home's value is much more than the limit, a jumbo loan tends to offer more because it includes value that a HECM excludes. A HECM tends to win for homes near or under the limit. It also tends to win for owners who want its growing credit line and FHA protections.
Compare both loan options when your home is a little above the limit. Use the calculator when checking the HECM option. On the same day, request a written private offer from a lender. Compare the money available after costs for both loans and compare their rates.
Jumbo reverse loans and condos
Some private lenders accept condos missing from FHA's approved list, although a HECM cannot lend on them. A proprietary loan may still be possible if a HECM turned down your condo. FHA's condo rules are explained in the requirements guide.
Questions people ask
Is a jumbo reverse mortgage worth it?
It may suit an owner who plans to stay and has a home worth well over $1,249,125. Compare the written loan offer with a HECM and review its protections for heirs and a spouse.
What are jumbo reverse mortgage rates right now?
Lenders set their own rates, which usually exceed HECM rates because no FHA insurance is involved. Ask for the margin and rate in writing.
What lenders provide jumbo reverse mortgages?
A small group of private lenders offers these loans, mainly larger reverse mortgage lenders. The lender list shows who closed the most HECMs, and many also offer private loans.
How does a proprietary reverse mortgage work?
Like a HECM, this loan uses your home as collateral and requires no monthly payment. It comes due when you sell the home, move out or die. Each lender sets the rate, age, protections and amount.
Which states allow reverse mortgages at age 55?
At 55, no HECM is available. Private loans follow each state's law. In some states, some lenders set a lower age. Ask the lender about the rules it applies in your state.