Orange County Reverse Mortgage –

What About the Proprietary or “Jumbo” Reverse Mortgage?

We offer several “jumbo” proprietary reverse mortgage products that have traditionally benefited homeowners living in higher-priced homes valued above the FHA and Fannie Mae lending limits. There is a growing number of these programs available. This type of loan works well for many situations.

Many of these programs compare favorably with the federally insured Home Equity Conversion Mortgage by enabling homeowners living in properties valued over $450,000 to access greater amounts of equity.

All proprietary reverse mortgage products provide homeowners age 62 and older with the ability to convert their home equity into cash without having to sell their home or assume monthly payments. It should be noted that currently “jumbo” loans require the borrower to either take a credit line for the eligible amount or receive the full amount in a lump sum.

In the near future, many more types of proprietary loans will be available due to the tremendous growth and popularity of reverse mortgages and the resulting competition among lenders. It is anticipated that they will be available for homes falling in the FHA price range, ie under the $362,700 maximum, and will be less expensive than FHA loans in that the 2% insurance premium will not be necessary. Be sure to ask us about any new proprietary loans that have become available.