PROPRIETARY REVERSE MORTGAGE GUIDE
Jumbo Reverse Mortgages
Reverse Mortgage Options for Higher-Value Homes
If you own a higher-value home in Oregon or Washington, a traditional FHA-insured reverse mortgage may not provide access to as much of your home equity as you’d like.
A jumbo reverse mortgage, also known as a proprietary reverse mortgage, is privately funded and may provide additional options for homeowners whose property values or borrowing needs extend beyond the parameters of the FHA HECM program.
What Is a Jumbo Reverse Mortgage?
A jumbo reverse mortgage allows eligible homeowners to borrow against a portion of the equity in a higher-value home.
The term “jumbo” is commonly used because these programs can provide financing beyond what may be available through an FHA-insured Home Equity Conversion Mortgage.
“Proprietary reverse mortgage” is the more precise term because these programs are created and funded by private lenders.
Program Guidelines May Vary By Lender
• Minimum borrower age
• Maximum property value
• Maximum loan amount
• Available payment options
• Interest rates
• Property eligibility
• Credit and financial requirements
Who Should Consider a Jumbo Reverse Mortgage?
For some homeowners, an FHA-insured HECM may still provide the better overall solution even when the property is highly valued.
For others, a proprietary reverse mortgage may provide significantly greater access to equity.
The right answer depends on the numbers.
A Proprietary Reverse Mortgage May Be Worth Exploring If You:
• Own a higher-value home
• Have substantial home equity
• Want access to more equity than a HECM may provide
• Have an existing mortgage you would like to eliminate
• Want to improve retirement cash flow
• Prefer to remain in your home rather than sell
• Need access to a larger amount of funds
• Want to compare FHA and private reverse mortgage options
Jumbo Reverse Mortgage vs. HECM
Both can provide access to home equity, but their structure and protections are different.
FHA Insurance
HECM
Insured by the Federal Housing Administration and subject to standardized federal program guidelines.
Proprietary
Privately funded and not FHA-insured.
Mortgage Insurance
HECM loans include FHA mortgage insurance premiums.
Proprietary reverse mortgages do not carry FHA’s HECM mortgage insurance premium.
Borrowing Capacity
Available proceeds are calculated using FHA program guidelines and the applicable FHA maximum claim amount.
Some proprietary programs can accommodate higher property values and may provide greater proceeds for certain homeowners.
Eligibility & Features
HECM borrowers generally must meet standardized HECM eligibility requirements.
Age requirements, property guidelines, payment options, pricing, and other features may vary by lender and state.
Why Higher-Value Homeowners May Need a Different Solution
Imagine a homeowner with a property worth substantially more than the value recognized under the HECM calculation.
Even though the homeowner may have significant equity, the HECM program may not allow all of the property’s additional value to increase available proceeds.
A proprietary reverse mortgage may consider more of that home’s value when calculating the available loan amount.
For homeowners who have accumulated significant real estate wealth but want greater liquidity during retirement, that difference can be meaningful.
Jumbo Reverse Mortgages in Oregon & Washington
Jumbo reverse mortgages may be particularly relevant for homeowners with higher-value properties throughout Oregon and Washington.
Home values and available equity vary widely across the region, so the more important factors are property value, borrower eligibility, and the individual lender’s program guidelines.
How Can Jumbo Reverse Mortgage Proceeds Be Used?
Depending on the program, eligible homeowners may have considerable flexibility in how remaining proceeds are used after required liens and obligations are satisfied.
Common Uses May Include:
• Paying off an existing mortgage
• Increasing retirement cash flow
• Creating additional liquidity
• Funding home renovations
• Paying healthcare or long-term care expenses
• Helping family members
• Consolidating certain debts
• Preserving other retirement assets
• Supporting lifestyle and retirement goals
Do Jumbo Reverse Mortgages Have Monthly Payments?
Proprietary reverse mortgages generally do not require monthly principal and interest payments as long as the borrower continues to meet the terms of the loan.
However, this does not mean homeownership becomes free.
Borrowers Remain Responsible For:
• Property taxes
• Homeowners insurance
• HOA dues, when applicable
• Property maintenance
• Applicable occupancy requirements
Do You Still Own Your Home?
Yes.
Taking out a jumbo reverse mortgage does not transfer ownership of the property to the lender.
You continue to hold title and remain the owner of your home.
You can generally continue living in the property, sell the home, pay off the reverse mortgage, or leave the property to your heirs.
What Happens When the Loan Becomes Due?
A proprietary reverse mortgage generally becomes due following certain maturity events, subject to the terms of the individual loan.
If the home is sold, the reverse mortgage balance is repaid from the sale proceeds and any remaining equity belongs to the homeowner or estate.
If heirs want to keep the property, they may have options for satisfying or refinancing the loan according to the program requirements.
Are Jumbo Reverse Mortgages Safe?
Proprietary reverse mortgages are legitimate mortgage products offered through private lenders, but they do not have the same FHA insurance structure as HECMs.
Before Choosing a Program, Review:
• Interest rate
• Closing costs
• Loan proceeds
• Non-recourse provisions
• Payment options
• Occupancy requirements
• Property requirements
• Loan maturity provisions
• Protections for spouses and heirs
Jumbo Reverse Mortgage vs. HECM: Which Is Better?
Neither is automatically better.
A HECM offers standardized federal program protections and may provide all the proceeds a homeowner needs.
A proprietary reverse mortgage may provide greater borrowing capacity or different features that make it more attractive for another homeowner.
The better question is not simply:
Which loan gives me the most money?
The more useful question is:
Which reverse mortgage provides the right combination of proceeds, costs, protections, flexibility, and long-term value for my goals?
Why Working With an Independent Mortgage Broker Matters
Proprietary reverse mortgage lenders create their own programs, and those programs can vary considerably.
One lender may provide more proceeds for a particular age and home value.
Another may offer more favorable pricing.
Another may have property guidelines better suited to a specific home.
Platinum Lending Solutions Can Compare Available Programs
As an independent mortgage broker, we are not limited to one proprietary reverse mortgage product.
Our goal is to help you understand the differences in available programs so you can make an informed decision based on your property, financial situation, and retirement goals.
Frequently Asked Questions About Jumbo Reverse Mortgages
What is the difference between a jumbo and proprietary reverse mortgage?
The terms are often used interchangeably. Proprietary reverse mortgage refers to a privately funded reverse mortgage, while jumbo commonly describes proprietary products designed to accommodate higher-value properties or larger loan amounts.
Is there a maximum home value?
Program limits vary by lender. Proprietary reverse mortgages may recognize substantially higher property values than the HECM program when calculating available proceeds.
Do jumbo reverse mortgages require FHA mortgage insurance?
No. Proprietary reverse mortgages are not FHA-insured and therefore do not carry FHA’s HECM mortgage insurance premium.
Are jumbo reverse mortgages only for luxury homes?
No. Whether a proprietary reverse mortgage makes sense depends on the property value, available equity, borrower circumstances, and how the proprietary options compare with a HECM.
Can I still leave my home to my heirs?
Yes. You retain ownership of your home. When the loan becomes due, your heirs may have options to keep or sell the property according to the terms of the specific loan.
Are jumbo reverse mortgages available in Oregon and Washington?
Yes. Proprietary reverse mortgage options are available to qualifying homeowners in Oregon and Washington, although individual programs and eligibility requirements vary by lender and state.
Compare Jumbo Reverse Mortgage Options
If you own a higher-value home, don’t assume that a standard HECM—or the first proprietary reverse mortgage you’re offered—is automatically your right option.
At Platinum Lending Solutions, we’ll compare available HECM and proprietary reverse mortgage programs based on your age, property value, existing mortgage balance, financial goals, and desired access to equity.
As an independent mortgage broker serving Oregon and Washington, our job is to help you understand your choices—not steer you toward a single lender or program.
