Jumbo Reverse Mortgage
JUMBO REVERSE Overview
A new option for owners of high-value homes!
* Finance of America Reverse Home Safe Second allows for a jumbo to be placed behind the existing mortgage first-lien position
** Based on a 5% effective rate for a 99 year old for the highest HECM lending ratio based on age
Today the two most popular types of reverse mortgages on the market are the Home Equity Conversion Mortgages (Insured by the FHA), and Jumbo or proprietary reverse mortgages. While FHA Reverse Mortgages have been around for 30 years, jumbo reverse mortgages are a newer option for owners of a higher-value property, gaining prominence over the last decade with flexible program choices.
The “jumbo reverse” is good news for today’s homeowners that have seen significant growth in value in recent years; homeowners of properties with values around $825,000 or higher often find this is the best way to incorporate their home equity into their retirement plan. Many Financial Planners recommend the jumbo reverse as a tool that allows their senior clients to tap into considerably more of their home’s value. A jumbo reverse mortgage is designed for homeowners of higher-valued properties that exceed the maximum value that FHA will consider when calculating a loan amount ($822,375), helping them access a larger portion of their home’s value. Those over the age of 55 with significant equity in a more expensive home are ideal candidates for a jumbo reverse mortgage.
What benefits make a jumbo reverse different?
While jumbo reverse mortgages have many similarities to the FHA reverse, they are unique for a number of reasons. One of the most notable benefits is that many jumbo reverse mortgages offer loan amounts as high as $4 million. In addition, property values are considered up to $10 million when calculating loan amounts. Another advantage of the jumbo reverse is that these private mortgages do not charge the significant FHA insurance premiums that are required on FHA’s reverse, the Home Equity Conversion Mortgage. Traditionally one of the FHA reverse mortgage’s most significant closing costs and ongoing monthly charges.
A jumbo reverse mortgage is a private or proprietary loan which means the loans terms, conditions and guarantees are established by the lender versus the typical FHA insured reverse mortgage which is administered by HUD. In addition to not incurring the cost of mortgage insurance, today’s jumbo reverse mortgages are available with very low closing costs, even significantly lower than closing costs for the refinance of a traditional home loan. Some jumbo reverse programs have closing costs as low as $125.
Here are some of the features of today’s jumbo reverse mortgages (features and benefits vary by the issuing bank and jumbo loan that is chosen).
- Loan amounts up to $4,000,000
- Property Values up to $10,000,000
- No first-year limits on how much cash you can draw
- Flexible options for accessing your home equity:
* Lump Sum of Cash to You at Closing
* Monthly Payments to You for 12 to 60 months
* Jumbo Reverse as a 2nd mortgage behind your current low rate 1st mortgage
* Line of Credit
* Combination of some of the Options above
Here are just a few of the unique ways other homeowners have used their jumbo reverse mortgage:
Contact me today to learn more or for a no-obligation evaluation.
C2 JUMBO REVERSE MORTGAGE
Why Choose Our Jumbo Reverse Mortgage?
Today, the retirement “three-legged stool” — Social Security, pension, and personal savings — is not sufficient enough to fund your retirement. Many seniors find themselves worrying about how they will meet their needs and wants as they age. So, C2 Reverse Mortgage is giving them the option of tapping into their home and eliminate mortgage payments. This monthly cash flow can help them get through difficult times or even use it to fulfill their dreams of traveling.
C2 Reverse Mortgage has made its mission to provide homeowners the best mortgage loan options so that they can live a worry-free life. One that doesn’t have the stress of making mortgage payments.
Our Program Highlights
- You need to participate in a session held by a HUD-approved counselor
- You must be older than 55 years
- You should either have complete ownership of your house or have a mortgage balance low enough that can be paid by the funds from your jumbo reverse mortgage
- A jumbo reverse mortgage is for your primary residence. You must reside there for at least 6 months and 1 day a year
- You cannot be negligent on federal loans or home obligations
- You should have personal financial assets or income to pay for homeowner’s insurance, property fees, maintenance, and real estate taxes
A jumbo reverse mortgage in California is approved by the state so that older adults can find some relief in their retirement. To make sure all our clients lead happy and comfortable lives, we have put certain safeguards in place to continue helping them in the future.
- Our jumbo reverse mortgage lenders highly recommend getting in touch with a counseling agency to get your financial affairs in order. Taking this step shortens the time it takes for us to approve your application.
- A jumbo reverse mortgage does not cover home insurance and property taxes. Hence, we assess your financial standing to ensure we can offer you our services.
- Your spouse of 55 years of age can remain in the house and qualify as a non-borrowing spouse as long as they continue to meet our obligations.