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Private, Proprietary, and Jumbo Reverse Mortgages

A jumbo reverse mortgage is a private reverse mortgage for homes worth more than the FHA will insure. In 2026 the FHA caps the value it will count at $1,249,125, so if your home is worth more than that, a standard HECM ignores the difference. A proprietary or jumbo program counts the full value, which usually means significantly more available equity.

Phil Stevenson is a Certified Reverse Mortgage Professional, one of roughly 200 CRMPs in the United States, and has closed reverse mortgages across South Florida for more than fifteen years. If your home is in Coral Gables, Pinecrest, the Florida Keys, Fort Lauderdale or Palm Beach, this is very likely the product that fits.

What is a jumbo reverse mortgage?

It is a reverse mortgage offered by a private lender rather than insured by the Federal Housing Administration. Because it is not an FHA loan, it is not bound by the FHA maximum claim amount, and it does not carry the FHA mortgage insurance premium that adds 2% of the appraised value to the cost of a HECM at closing.

These products are sometimes called proprietary reverse mortgages, private reverse mortgages, or jumbo reverse mortgages. They are the same category of loan.

How much can you borrow with a jumbo reverse mortgage?

The amount depends on your age, your home’s appraised value, current interest rates, and the specific program. The important difference from a HECM is the starting point. A HECM stops counting value at $1,249,125 in 2026. A jumbo program counts the actual appraised value, so on a $2.5 million home the gap between the two products is substantial.

There is no single published maximum that applies across all lenders, which is exactly why comparing programs matters. Contact us for a side by side illustration using your real numbers rather than a generic calculator.

How is a jumbo reverse mortgage different from a HECM?

  • Value counted. HECM stops at $1,249,125 for 2026. Jumbo counts full appraised value.
  • Mortgage insurance. The HECM charges an FHA mortgage insurance premium of 2% of the appraised value up front. Jumbo programs do not.
  • Insurance backing. The HECM is federally insured, which brings consumer protections a private loan may structure differently. This is a real trade-off worth discussing.
  • Age. The HECM requires you to be 62 or older. Some proprietary programs begin at a younger age, depending on the product and your state.
  • Property types. Many jumbo programs will lend on condominiums that are not on the FHA approved list.

Can you get a jumbo reverse mortgage on a Florida condo?

Often, yes, and this is one of the most useful things about these programs in South Florida. A HECM generally requires the condominium project to be FHA approved, and a great many Florida buildings are not, particularly along the coast and throughout the Keys. Several proprietary lenders will consider condos that FHA will not. If a HECM was ruled out because of your building, the answer may still be yes through a different program.

Who is a jumbo reverse mortgage right for?

Typically a homeowner aged 60 or older with substantial equity in a higher value property who wants to access that equity without a monthly mortgage payment. Common situations we see across South Florida include funding retirement without selling a long held home, eliminating an existing mortgage payment, creating a standby line of credit, and buying a next home with a reverse purchase.

It is not right for everyone. If your home value is comfortably under the FHA limit, a standard HECM is usually the better and cheaper choice. An honest comparison is the whole point of the first conversation.

Why work with PS Mortgage Lending

We are a broker, not a single lender, which means we compare proprietary programs across multiple wholesale lenders instead of selling you the only product on one shelf. Phil Stevenson holds the CRMP designation, formerly served on the Ethics Committee of the National Reverse Mortgage Lenders Association, and is an Iraq and Afghanistan disabled veteran. The firm is rated 5.0 stars across 187 Google reviews and serves clients in English and Spanish throughout Florida, Georgia and Texas.

Call (305) 791-4874 for a straight comparison of your options, with no obligation.

Jumbo Reverse Mortgages

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    Private, Proprietary, or Jumbo Reverse Mortgages: In 2017, the FHA Reverse Mortgage or HECM (click here to learn about the HECM) became less attractive to borrowers, and there was worry the “viability” of the HECM was in jeopardy. So the largest reverse mortgage lenders began to create their own versions of the reverse mortgage. Previously there was only 1 jumbo reverse mortgage, but this was only for jumbo sized loans at the time. Each lender has varying nuance to their programs. Some allow for borrowers to be 55 years old, while none protect non-borrowing spouses (NBS) the way the HECM does. Some have lines of credit or varying methods of drawing funds, while others don’t have restrictions on condos or they allow for lower loan amounts or great loan amounts. You get less of your value than you would with the HECM, but no value limits means higher loan amount for those with higher values. The HECM also has a very expensive upfront and monthly Mortgage Insurance Premium (MIP) that never goes away. In the end, these types of reverse mortgages are attractive for those who don’t fit into the mold of the HECM, or for those who don’t want all the expense that comes with the HECM. You want to go over the several types of private reverse mortgages with a company who can offer ALL of the ones available out there, which means you must go to a broker like us.

    * This material is not from HUD or FHA and has not been approved by HUD or a government agency.