Jumbo reverse mortgage
A private reverse mortgage for homes worth more than the HECM, the FHA-insured reverse mortgage for homeowners 62 and older, can count.
You don’t make monthly loan payments when you use a jumbo reverse mortgage to borrow against a high‑value home. A private lender creates and finances it, so people also call it a proprietary reverse mortgage. This loan isn’t insured by the government, the way a standard Home Equity Conversion Mortgage, or HECM, is. The HUD HECM program covered 22,318 loans between October 2025 and August 2026, yet your countable home value stays capped at $1,249,125.
Proprietary reverse mortgage limits vs standard HECM loans
Only the first $1,249,125 of what your home is worth counts under standard federal loans, an increase from $1,209,750 in 2025. A federal loan can’t draw on any value beyond that cap because of the HECM lending limit. Rules for minimum ages and condos, plus higher limits, are set by private lenders on their own. You also don't pay the federal mortgage insurance premium, which protects lenders when your debt exceeds your home's worth. The principal limit is the full amount a loan makes available before subtracting fees and mortgage payoffs.
| Borrower age | Standard share of $1,249,125 cap | Upfront federal insurance | Yearly federal insurance |
|---|---|---|---|
| 62 | 30.7% | 2% of home value | 0.5% of balance |
| 75 | 39.4% | 2% of home value | 0.5% of balance |
| 85 | 50.7% | 2% of home value | 0.5% of balance |
Is a jumbo reverse mortgage a good idea?
A private loan works for you when you need more cash and your home is worth well above $1,249,125. Your starting reverse mortgage closing costs may drop when you don’t pay the 2% upfront insurance fee. According to 24 CFR 206.31, federal origination fees are capped at 2% of the first $200,000, then 1% on the rest, with a total between $2,500 and $6,000. Based on the CFPB cost guide, you’ll add about $3,000 for appraisal, title and recording fees. Check with your lender about what their fees look like next to others.
Jumbo reverse mortgage pros and cons
You're able to access the equity over $1,249,125 while avoiding both the 2% upfront and the 0.5% yearly insurance costs. Some private loans also say yes to younger borrowers or condos that wouldn't qualify under federal rules. But private loans come with higher interest rates and no federal caps on fees. Before you decide, look over the general reverse mortgage pros and cons.
What’s the most serious drawback of a reverse mortgage?
Each month your loan balance rises because interest is added to your debt. When you sell or die, that leaves you with less equity. See how heirs repay the loan on our reverse mortgage after death page. Your balance climbs faster when private interest rates are higher.
What are the current jumbo reverse mortgage rates?
Private lenders decide their own rates, which sit above federal ones, and keep those numbers private. For context, 1,917 federal loans insured by HUD in August 2026 carried a 6.0% median note rate. The expected rate for federal borrowing power is 7.125%, built from the 5.00% 10 year Treasury on October 23, 2026 plus a 2.125% median margin. Before you collect quotes, check current reverse mortgage rates.
How does the 60% rule work in a reverse mortgage?
During the first 12 months, federal rules limit the cash you’re allowed to take. In year 1 you’re allowed to draw as much as 60% of your principal limit. You’re only permitted to take more than that to cover an existing mortgage, closing costs, and an extra 10%. With private loans, you can often collect all your cash at closing.
Jumbo reverse mortgage calculator without personal information
Our reverse mortgage calculator lets you see your federal baseline, and you won’t need to enter your name, phone number or email. Since private lenders follow their own guidelines, any online jumbo reverse mortgage calculator provides only a rough number. To watch how interest builds over time, try our reverse mortgage amortization calculator.
Best jumbo reverse mortgage lenders and reviews
Put written quotes from a few reverse mortgage companies next to each other and compare. Clear fee statements, patient service and honest rates show up in strong lender reviews. Weighing private contracts against standard loans is easier after you talk with HUD approved reverse mortgage counselors.
Questions about your own home? Call (833) 962-5300. A reverse mortgage specialist answers; we are not a lender.