Jumbo Reverse Mortgage

The development of proprietary reverse mortgage loans was a natural outgrowth of HECMs. They were designed for and continue to serve owners of higher-value homes — those exceeding FHA loan limit guidelines — which allow borrowers to access more of their home’s value. For example, Jumbo Reverse mortgage takes into account home values of up to $10 million. 

As a best practice, most jumbo reverse mortgage lenders offer borrowers some of the same consumer protections as those available with a HECM. For example, the Jumbo Reverse Mortgage Loan is a non-recourse loan just as a HECM is, meaning neither you nor your heirs will have to pay the difference if the loan value exceeds the home’s value when the mortgage becomes due.

Since jumbo reverse mortgage loan payments aren’t FHA-insured products, borrowers don’t have to pay upfront or ongoing mortgage insurance premiums, which can produce substantial savings over the life of the loan. 

Although jumbo reverse mortgages offer owners of high-value homes many advantages, protections differ from HECM protections. Therefore, prospective borrowers of jumbo reverse mortgages need to be clear about what these protections are. 

Why Choose the Jumbo Loan?

Do you own a high-value home and are looking into a reverse mortgage or refinance loan? At OneTrust Home Loans, we proudly offer older Americans the ability to access up to $4 million in loan proceeds from either solution. As you begin planning to improve your retirement with the help of home equity, be sure to chat with a OneTrust Home Loans professional to see which option may be the better solution.

Which Jumbo Loan Is Right for Me?

Because every situation is different, there is no silver bullet. The best way to determine whether a jumbo reverse mortgage or jumbo refinance loan is right for you is to have a conversation with one of our home equity solutions professionals.

Introducing the Jumbo Reverse Mortgage Loan

For those homeowners who qualify, we offer the jumbo reverse mortgage loan, a unique solution created exclusively for high-value homeowners. Unlike a traditional reverse mortgage loan, the jumbo loan is a private reverse mortgage offering that allows borrowers to access up to $4 million of their home equity in tax-free¹ cash. The loan has a fixed rate and allows you to take out the money in one lump sum at closing.

The jumbo loan is like a traditional reverse mortgage in that:

• The borrower can eliminate monthly mortgage payments.
• The borrower must continue to pay property taxes and homeowner’s insurance, and must keep the home in good repair, per the obligations of the loan.
• The borrower remains the owner of the home and on title.²
• The amount you could borrow depends on the value of your property, your interest rate and your age.

^{¹Consult your tax advisor.
²You cannot lose your home under normal circumstances and so long as you pay your taxes and insurance and otherwise comply with the loan terms.}

What Does It Take to Qualify for the Jumbo Loan?

To qualify, borrowers must at a minimum meet the following requirements.

• You must be at least 55 years old.³
• You must own a high-value property and it must be your primary residence.
• Must be able to deliver more proceeds than a traditional reverse mortgage.

^{³The jumbo loan options have a minimum age requirement of 55 in all states, with the exception of NY and WA in which the minimum age is 60 and UT, NC, and TX in which the minimum age requirement is 62.}

Features and Safeguards

As a proprietary reverse loan offering that resembles the functions of a traditional reverse mortgage, the jumbo loan has several safeguards in place to protect borrowers.

• Borrowers must complete a counseling course to ensure they are aware of their options and the obligations of the loan.
• Borrowers undergo a financial assessment to ensure their ability to comply with the loan terms.