Jumbo Reverse Mortgage
Jumbo Reverse Mortgages are generally loans designed to fill the market niche for borrowers who want loans above the HECM limit. The need for higher HECM loan limits was addressed as part of the Housing and Economic Recovery Act of 2008 (HERA). The HERA effectively raised the maximum HECM loan amount from a range of $200,160–$362,790 to a new nationwide ceiling of $417,000, by tying the limit to the national conforming limits for Freddie Mac.
While many people take part in the advantages provided by reverse mortgages in order to fund their retirements, if you your home’s worth is higher than average – in the $1 million+ range – then a traditional reverse mortgage may not give you the most bang for your buck. This is where a jumbo reverse mortgages come in.