Jumbo or Proprietary Reverse Mortgage!
Hey everyone, Mortgage Nerd here! Another discussion on reverse mortgages: What is a jumbo reverse mortgage? Well, for 2022, the loan limit or the value limit in this case for reverse mortgages is $970,800, so $970,000, what if your value is $970k, or $1,000,000, or $1,000,000.1? We use $970k! Your value could be $6,000,000, we use $970k! So that obviously hurts people like a client I have now who’s value should be around $6,000,000, because they’re not gonna get that much money if they only use the $970k value, when their value is really $6,000,000. So we have jumbo reverse mortgages, they are private reverse mortgages, (and I say private because they’re not a public FHA company) really they’re proprietary, which means that they belong to individual companies, as opposed to offered to everybody that is an FHA lender.
So the proprietary reverse mortgages have been around for a while, very few lenders were offering it, up until 2017, when they made changes to the FHA reverse mortgage, and limited the amount of money you can take as rates are going up, like right now.
So the jumbo reverse mortgage became just the proprietary or private reverse mortgage. And you had more and more people using it, even if the value is $500,000 or $600,000. All of them are different, I have a cheat sheet, and I can offer all of them. Some have loan amount limits, where your loan amount can be under $100,000, others say your value can be under $150,000 or under $300,000. A lot of different nuances to them, they have fixed rates, they have adjustable rates with a line of credit, or monthly payments.
So there’s various options on these private proprietary jumbo reverse mortgages. Something that I do offer, I have a lot of experience with, and they are becoming more and more prominent now as mortgage rates rise. That’s all on jumbo or private proprietary reverse mortgages. Mortgage Nerd, out!