A jumbo reverse mortgage can give seniors under age 62 access to millions of dollars. While reverse mortgages have a lot in common with traditional mortgages, there are significant differences. Let’s take a look at what a jumbo reverse mortgage is and how it can benefit you.
A jumbo reverse mortgage allows you to borrow a higher loan limit than those provided by Federal Housing Administration’s (FHA’s) or Home Equity Conversion Mortgage (HECM). This program is solely offered by private lenders, not the government. As of 2021, the maximum claim amount for the HECM program is $822,375.
The standard requirements for this kind of mortgage are usually the same as basic reverse mortgage requirements:
- You must live in the home you’re financing for the majority of the year – primary residence
- You must be able to cover your current loan balance and any cash you wish to claim with your equity
- You must provide proof that is current with your property taxes and insurance
- Your home must be maintained
Whether you’re getting a jumbo reverse mortgage in California or New York, the requirements will most likely be the same.
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