A Jumbo Reverse Mortgage is a mortgage for higher valued homes. Similar to a FHA backed Reverse Mortgage in that they are both Non-Recourse Loans, which means the home is solely responsible for repayment of the loan, not the borrower. With both types of these loans, the borrower remains on title. On a Jumbo Reverse, one borrower needs to be at least 60, with the FHA backed Reverse Mortgage, it is age 62.

Both mortgages require the borrower to maintain the home, pay the property taxes, homeowners insurance and any other fees (i.e. HOA dues, Flood insurance, etc).  Seniors can qualify to purchase a home with a reverse mortgage or refinance their existing mortgage.

With a Jumbo Reverse Mortgage, the value goes up to $10 million, the FHA backed Reverse Mortgage is $822,375 as of 2021. The amount someone can borrow with a Jumbo Reverse is up to $4 million, and the FHA backed Reverse is approximately $400,000. Both loans require at least 50% equity or more to qualify.

One of the nice benefits of a Jumbo Reverse Mortgage is the fees are considerably lower as these loans do not come with mortgage insurance, with is 2% of the value on an FHA Reverse, which is what transfers responsibility of repayment from the borrower to the home. The trade off for this is the interest rate is higher with a Jumbo Reverse.

For seniors looking to eliminate their mandatory, monthly PI mortgage payment or gain access to their equity tax free to use as they wish, both a Jumbo Reverse or a FHA backed Reverse may help a senior accomplish their goals and dreams in retirement.