Best Jumbo Reverse Mortgages
In order to find the best jumbo reverse mortgages, we looked at interest rates, lender's reputation, and loan conditions.
Last Updated:July 19, 2017
Jumbo reverse mortgages are the same as traditional reverse mortgages, or home equity conversion mortgages (HECMs), as they allow homeowners to stop paying their existing home loan and withdraw a portion of their equity in the form of cash. This cash can be disbursed as a lump sum, a line of credit, or fixed payments that can be received indefinitely, provided the borrower fulfill their obligations under the terms of the loan.
Jumbo reverse mortgages, often called proprietary reverse mortgages, differ from a regular reverse mortgage in that they are for loan amounts that exceed the conforming limits set by the Federal Housing Finance Agency, and therefore cannot be purchased, guaranteed, or securitized by Fannie Mae or Freddie Mac. Put simply, if your home is worth more than $636,150, you can't get a traditional government-insured reverse mortgage and you must opt for a Jumbo loan.
Jumbo reverse mortgages are designed for luxury properties and homes in highly competitive local markets. They are not insured by the FHA but rather originated and backed by private institutions. However, borrowers are subject to the same obligations as they are under traditional reverse mortgages. Homeowners must be over 62 years old, continue to live in the home, own their home outright or have a low mortgage balance that can be paid off with the proceeds, and have the financial resources to continue to maintain the property and pay all associated fees. Jumbo reverse mortgages also generally do not require monthly mortgage insurance premiums.
Top 3 Jumbo Reverse Mortgages
American Advisors Group proprietary jumbo loan can help you convert your home equity into up to three million dollars in loan proceeds, if you meet their requirements. Homes can be valued up to $6 million, and this includes Ginnie Mae-approved condos. Some of the advantages of an AAG jumbo reverse mortgage is the lack of capital gains taxes, zero monthly mortgage payments, the ability to receive all your money in a lump sum, and no mortgage insurance premiums. AAG is fully accredited by the Better Business Bureau, with a B+ letter grade, and is also a member of National Reverse Mortgage Lenders Association (NRMLA). Their 97% satisfaction rate is unparalleled in the industry, and they also feature free kits and webinars on their site, to help better inform their customers.
LendingTree puts borrowers in contact with multiple potential lenders, thereby immeasurably simplifying the comparison between companies. Since banks and lending services are competing for the homeowners' business, borrowers can potentially get better offers than by searching on their own. Some of their lenders, but not all, offer jumbo reverse mortgages, and when they do, their conditions may vary. One company, for example, offers loans proceeds of up to two million dollars, at about seven percent interest, whereas others allow homeowners with high-end properties to borrow as much as six million dollars. Since LendingTree only accepts the most legitimate lenders into their network, they have a high degree of credibility, resulting in an A+ BBB letter grade, and high satisfaction rating.
Finance of America puts the customer first, always. Their core belief is that every business transaction is personal, because real people are behind the numbers. They specialize in reverse mortgages, and therefore provide expert, professional consulting on the ins and outs of this type of mortgage loan. Their jumbo reverse mortgage offers loan proceeds of up to $2.25 million, has no required insurance premium, and is much more flexible than a traditional Home Equity Conversion Loan. Condominiums valued above $500,000 do not have to be FHA-approved, and finally, the full sum is available at closing. Finance of America is fully accredited with the Better Business Bureau, with an A+ letter grade. They're one of the premier mortgage lenders in the U.S., with ample experience and a diverse portfolio of loan products.
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Comparing Jumbo Reverse Mortgages
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