Up to $4 MILLION IN CASH may be available to an eligible homeowner with a JUMBO REVERSE MORTGAGE. Loan proceeds are paid in one lump sum with no future monies available. The borrower is not required to make any monthly principle and interest payments as long as they meet the loan guidelines.
All borrowers must be 62 or better! The loan is based on the age of the youngest borrower. A financial assessment is required to ensure that the borrower can meet their financial obligations once the JUMBO REVERSE MORTGAGE is in place. The borrower must live in the home as their primary residence, pay their taxes, insurance, and any other property charges, and meet the loan obligations.
There is no upper value limit, only an upper loan limit of $4 Million. A JUMBO REVERSE MORTGAGE is for properties which do not qualify for the FHA insured HECM. Or where the borrower may be able to obtain higher loan proceeds with the JUMBO rather than the HECM.
A JUMBO REVERSE MORTGAGE is available for new or existing single-family residences, 2-unit, or condominiums valued over $500,000. It can be used for both refinances and purchase transactions. Three units or more, agriculture zoned properties, hobby farms, income producing property, manufactured or modular homes, working farms, ranches or orchards may not be financed with a JUMBO REVERSE MORTGAGE.
There are no monthly principle and interest payments required, You are required to pay your property taxes, hazard insurance, HOA or other property charges when due. The loan balance is due when the last borrower on title (or eligible non-borrowing spouse) permanently moves out or borrower fails to meet loan obligations.
The lender may require two counseling sessions, one with an approved FHA counselor and one through the lender. If the property is valued greater than $1.5 Million, two appraisals will be required. The borrower pays for one and the lender pays for the other. The lender takes both values into consideration and will determine the final value used for the JUMBO REVERSE MORTGAGE.
All borrowers are subject to a full FINANCIAL ASSESSMENT review of credit, income, property charge payment history. If borrower fails the assessment review or has a median credit score of less than 600, a full life expectancy set-aside (LESA) for property taxes and insurance payments for the life of the loan will be required.
Currently there is no upper limit of value. However, the lender does put a cap on the value considered for the maximum loan.
The maximum loan is $4 MILLION
Non borrowing spouses (NBS) are eligible but do not receive the same protections as with a HECM.
A lump sum payment of loan proceeds is made at closing. There are no future payments available with a JUMBO REVERSE MORTGAGE.
The JUMBO REVERSE MORTGAGE is a proprietary reverse mortgage loan. Like the HECM it is a non-recourse loan and neither the borrower(s) nor their heirs shall have personal liability. There is no mortgage insurance.
All borrowers are subject to a full FINANCIAL ASSESSMENT review of credit, income, property charge payment history. If borrower fails financial assessment, a partial or full LESA per FHA may be required.
The maximum value considered for a HECM is $679,650.
$509,737 is the current maximum loan.
An eligible non borrowing spouse (NBS) is able to stay in the home if the borrowing spouse passes away; as long as the non borrowing spouse continues to meet the terms of the note. The loan would then be due and payable when the NBS permanently leaves the home, or fails to meet the HECM obligations.
Loan proceeds may be taken as a lump sum, line of credit, monthly tenure or term payments. Payment structure may be changed during the loan term.
The HECM is a federally insured REVERSE MORTGAGE, non-recourse loan regulated by FHA. Borrower is required to pay an upfront mortgage insurance premium and monthly mortgage insurance is included in loan amortization.