Jumbo Reverse Mortgage Lenders, Limits and Trade-offs
Short answer: A jumbo reverse mortgage is a private lender’s own reverse mortgage, built for homes worth more than the government program will count. The FHA-insured HECM stops looking at your home value at $1,249,125 for 2026. If your house is worth $3 million, the government program acts like the last $1.75 million does not exist, and that is the whole reason these products were created.
Jumbo or proprietary? They are the same thing
I used both words in the same sentence in that video, so let me clear it up before anything else. Proprietary means a private lender built the product with its own money instead of using the FHA-insured HECM program. Jumbo refers to the maximum claim amount, which is just the home value the loan is allowed to recognize. Right now that ceiling is $1,249,125 on an FHA HECM. If a loan needs to count a home value above that, people call it jumbo.
Here is the part that surprises people: plenty of borrowers use a proprietary loan on a home worth less than the FHA limit. They do it because the private product fits what they are trying to accomplish better than the government one does. Bigger home value is only one reason to look at these.
| Feature | HECM (FHA insured) | Jumbo / proprietary |
|---|---|---|
| Maximum claim amount | $1,249,125 (2026) | Up to $10,000,000 |
| Maximum loan amount | About $936,000, theoretical | Up to $4,000,000 |
| Minimum home value | None | $300,000 |
| Minimum borrower age | 62 in every state | 55 in CO, FL, MI; 60 in WA; 62 in TX |
| Eligible condominiums | Project must be on HUD’s approved list | Investor approved, commonly Fannie Mae warrantable |
| FHA insured | Yes | No |
| Upfront mortgage insurance | 2% of the lesser of value or $1,249,125, about $24,982 at the limit | None |
| Annual mortgage insurance | 0.50% of the loan balance, every year | None |
| Interest rate | Lower | Higher |
| Access in the first 12 months | The greater of 60% of the principal limit, or mandatory obligations plus 10% | Up to 100% at closing on fixed-rate programs |
| Line of credit growth | Note rate plus 0.50%, compounding on the unused portion, for the life of the loan | Fixed 1.5%, and only for the first seven years* |
| Line of credit term | For life, and cannot be frozen while the loan is in good standing | 10 year draw period* |
| Minimum draw at closing | None | 25% of the principal limit on the ARM, 100% on the fixed* |
| Origination fee | Calculated, up to $6,000 | ARM: the lesser of 5% of the principal limit or $60,000. Traditional fixed: 1%, capped at $30,000* |
| Non-borrowing spouse | Protected, can remain in the home | Usually unprotected |
| Non-borrowing spouse living in the home | Deferral available if HUD’s eligibility conditions are met | Videotaped attorney interview required* |
| Manufactured homes | Eligible if they meet FHA standards | Generally not eligible |
| Borrower living in an accessory dwelling unit | Not allowed | Allowed on single-family or two-family lots* |
| Seasoning wait after cash-out | Up to 12 months | None |
| Streamlined underwriting at 720+ FICO | Not available | Available on some programs |
| Credit score floor | No hard minimum, but 600 or below requires a set-aside | Below 600 requires a set-aside* |
| Installment debt look-back | 24 months | 12 months* |
| Can be used to buy a home | Yes | Yes |
HUD rules above are from 24 CFR 206.25 for the first-year disbursement limit, and current FHA mortgage insurance premiums of 2% upfront and 0.50% annual. * These figures are for the Secure Equity program specifically. It is not available in every state, and other proprietary programs set their draw periods, growth rates, minimum draws and origination fees differently. Ask for the terms of the specific program you are quoted, in writing, before you decide.
How big is the proprietary reverse mortgage market?
Proprietary reverse mortgages out-produced government-insured HECMs for the first time in the first quarter of 2026, $953 million against $875 million. By dollar volume the proprietary share of the reverse mortgage market rose from 30% at the end of 2024 to 54% through the first half of 2026.
That crossover came faster than almost anyone in the business expected. Proprietary production was $470 million in the first quarter of 2025. One year later it had more than doubled, and it has not slowed since.
| Period | Proprietary | HECM |
|---|---|---|
| Q1 2025 | $470 million | Not reported |
| Q4 2025 | $730 million | Not reported |
| March 2026 | $344 million | $260 million |
| Q1 2026 | $953 million | $875 million |
| Q2 2026 | $1.2 billion | $950 million |
| First half 2026 | $2.2 billion | $1.8 billion |
The share numbers tell the same story from the other side. Proprietary lending held 30% of the market at the end of 2024, 45% at the end of 2025, 52% at the close of the first quarter of 2026, and 54% through June.
Why the loan count tells a different story
Here is the part most coverage skips. Proprietary loans are the majority of the money but nowhere near the majority of the loans. Across all of 2025 they were 22% of reverse mortgage originations by count and roughly 40% by dollar amount. That full-year average sits below the 45% they were running by December, because the share climbed all year. The average proprietary loan is simply much larger, which is the whole point of the category.
| Year | Proprietary loans | HECM loans | Proprietary share by count |
|---|---|---|---|
| 2023 | About 1,800 | 23,538 | About 7%, or one in 14 |
| 2024 | 3,251 | 24,649 | Not reported |
| 2025 | About 7,001 | 24,828 | 22%, or more than one in five |
Proprietary unit volume rose 81% in 2024 and another 118% in 2025. Over the same stretch the HECM barely moved, going from 23,538 loans to 24,828. The entire growth of the reverse mortgage market is coming from the uninsured side.
Total reverse mortgage production was $6.25 billion in 2023, $7.51 billion in 2024, and $9.65 billion in 2025, a 28.5% jump in the most recent year.
How much home equity are we talking about?
Homeowners aged 62 and older held a record $14.92 trillion in home equity in the first quarter of 2026. That single quarter added $314.8 billion in home values, up 1.8%, while their mortgage debt rose only $10.5 billion, up 0.4%. Equity is growing far faster than the debt against it.
| Quarter | Senior home equity |
|---|---|
| Q1 2023 | $11.62 trillion |
| Q1 2025 | $13.91 trillion |
| Q4 2025 | $14.62 trillion |
| Q1 2026 | $14.92 trillion, a record |
Figures on this page: New View Advisors Proprietary Reverse Mortgage Production Index through June 2026; Mortgage Bankers Association analysis of HMDA data 2018 to 2025; NRMLA and RiskSpan Reverse Mortgage Market Index Q1 2026; FHA 2026 HECM lending limit of $1,249,125. Compiled September 2026 by Christopher Gibson, mortgage broker, C2 Financial, NMLS #1910430. Free to cite with attribution and a link.
Two more numbers explain why proprietary lending is growing into that equity. 84% of baby boomers say they plan to stay in their current home, per Northwestern Mutual, and boomers made up 42% of all home purchases in 2026, per the National Association of Realtors. The people holding the equity are not selling it.
The five differences that actually matter
1. Maximum claim amount. The FHA HECM caps the home value it will count at $1,249,125. On the proprietary program I place most of my jumbo business through, that ceiling is $10 million. This is the difference that creates the whole category.
2. Maximum loan amount. The theoretical ceiling on a HECM works out to about $936,000. I want to be honest about that number: you are not going to see it. It assumes a borrower in their nineties and an expected rate far below where rates actually sit today. The proprietary program goes to about $4 million.
3. Minimum home value. There is no minimum on a HECM. The proprietary program needs $300,000. Every private program sets its own floor and ceiling, so this one moves depending on whose product you are looking at.
4. Minimum age. This one has a catch that almost nobody writes about, and it gets its own section below.
5. What happens to a spouse who is not on the loan. Also its own section, because it is the most important thing on this page for a married couple.
Jumbo reverse mortgage pros and cons
The jumbo reverse mortgage wins on how much equity you can reach, how fast you can reach it, and how early in life you qualify. It loses on spousal protection, interest rate, and the line of credit. For most borrowers the spousal question decides it.
Where the jumbo wins
- Your whole home value counts. The HECM stops counting at $1,249,125 no matter what the house appraises for. Proprietary programs count value up to $10 million and lend up to about $4 million. On a $2 million home that gap is the entire reason this category exists.
- No FHA mortgage insurance. A HECM charges 2% upfront, roughly $24,982 at the 2026 limit, plus 0.50% of the balance every year for as long as the loan lives. Proprietary programs charge neither. Read the origination fee note in the next column before you count that as a saving.
- All of it at closing. HUD caps what you can take in the first 12 months at the greater of 60% of your principal limit or your mandatory obligations plus 10%. A fixed-rate proprietary loan has no such cap. If you are paying off a large existing mortgage, that rule alone can decide whether the loan works.
- Age 55 in three of the five states I work in. Colorado, Florida and Michigan allow 55. That is seven years earlier than the HECM, which matters if you are planning to stop working at 57.
- Condos FHA will not touch. A HECM needs the whole project on HUD’s approved list. Proprietary programs generally accept investor-approved or Fannie Mae warrantable projects, which is a far larger universe. Secure Equity also lets you live in an accessory dwelling unit on the property, which a HECM does not permit at all*.
- No seasoning wait. If you did a cash-out refinance or opened a HELOC in the last year, a HECM can make you wait up to 12 months. Proprietary does not.
- Lighter documentation above 720. Some proprietary programs offer a streamlined financial assessment for stronger credit. HUD’s financial assessment has no equivalent.
Where it costs you
- Your spouse may not be protected. This is the one that matters most. On a HECM, a spouse who is not on the loan can stay in the home after the borrower dies under HUD’s deferral rules. Most proprietary programs have no equivalent, and the loan becomes due. If one of you is under the minimum age, ask this question first, not last.
- The origination fee is much larger. A HECM origination fee is capped and calculates up to $6,000. On Secure Equity the ARM charges the lesser of 5% of your principal limit or $60,000, and the traditional fixed charges 1% capped at $30,000. On a large loan that gap can swallow the mortgage insurance savings whole, so compare total closing costs side by side rather than the insurance line on its own.
- No FHA insurance behind it. These are still non-recourse, so you will never owe more than the home is worth at repayment. But the standardized federal protections that ride along with a HECM are not automatic here. Read the actual note.
- Higher interest rate. Proprietary rates run above HECM rates. On a loan with no monthly payment, the rate compounds against you, so a higher rate spends your equity faster.
- The line of credit is weaker, and it is not close. A HECM line grows at your note rate plus 0.50% on the unused portion, for life, and cannot be frozen or cut while you hold up your end. On Secure Equity the line grows at a fixed 1.5% and only for the first seven years, the draw period ends at 10 years, and the ARM makes you take 25% of your principal limit at closing whether you need it or not. Other programs set these differently, so get the terms in writing.
- Property restrictions. Manufactured homes generally do not qualify. Large-acreage and rural properties can be limited. Not every program is offered in every state.
- There is a floor on home value. Proprietary programs generally want $300,000 or more. Below that the HECM is your option, and that is a perfectly good outcome.
- Equity you use now is equity you do not pass on. True of any reverse mortgage, but worth saying plainly. Whatever is left at the end still belongs to you or your estate, and the balance grows the whole time because you are not paying it down.
Is a jumbo reverse mortgage really available at 55?
Not everywhere, and this is where a lot of the marketing you will see is misleading by omission.
The government-insured HECM is age 62 in every state. No exceptions. Proprietary programs start at 55 in Colorado, Florida and Michigan. But Washington sets the floor at 60, and Texas sets it at 62, which means there is no age advantage in Texas at all. These are state laws, not lender preferences. Washington puts its floor in RCW 31.04.515, and Texas writes the age requirement into its state constitution at Article XVI, Section 50(k). A lender cannot waive either one.
| State | HECM | Proprietary / jumbo |
|---|---|---|
| Colorado | 62 | 55 |
| Florida | 62 | 55 |
| Michigan | 62 | 55 |
| Washington | 62 | 60 |
| Texas | 62 | 62 |
You do not have to take my word for the split. Finance of America, one of the largest proprietary investors in the country, publishes the same breakdown on its wholesale product page: age 55 in most states, 60 in Washington, and 62 in Texas. The statute sets the floor and the lenders build to it.
If you are 57 and reading a national article that says age 55, that article is right in three of the five states I work in and wrong in the other two. Check your own state before you build a plan around it.
What happens to a spouse who is not on the loan?
On an FHA HECM, a non-borrowing spouse is protected. If the borrower dies, the surviving spouse is not forced to repay the loan and can stay in the house, provided they meet HUD’s conditions for an eligible non-borrowing spouse.
“On these jumbo proprietary products, a non-borrowing spouse is usually unprotected. That is the trade nobody puts in the brochure.”
With the proprietary products, that spouse usually has no such protection. When the borrower passes away, the loan becomes due and they have to find a way to pay it off, refinance the property, or sell it. For a couple where one person is 58 and the other is 52, and this is the last house they plan to own, that trade usually points back to waiting for the HECM. More money now is not worth much if it costs your spouse the house later.
There is one more wrinkle worth knowing before you get to a closing table. On Secure Equity, if a non-borrowing spouse is living in the home, the lender requires a videotaped interview with an attorney*. It can also be required for a spouse who does not live there, if you are in a community property state or if they are on title. Almost nobody is warned about this in advance and it catches people off guard. The reason it exists is that the lender wants a recording proving the spouse understood exactly what they were agreeing to give up, which should tell you how seriously the industry treats this particular trade. If a videotaped interview with a lawyer sounds like a lot of ceremony for a routine loan feature, that is the right instinct.
Where the government program is simply better
I would rather tell you this than have you find out after closing.
The line of credit on a HECM is better, full stop. The proprietary line does not compete with it, and in some states a line of credit is not offered on the proprietary product at all. If the growing line is the main reason you want a reverse mortgage and your home is under the FHA limit, the government program is the right answer.
Interest rates are lower on the HECM too. That is a direct result of the mortgage insurance premium you pay for on the FHA product. And because the proprietary loans let you access a higher percentage of your equity at a higher rate, the balance grows faster and the equity you keep dissolves quicker. Both of those things are true at the same time, and you should see them side by side before you choose.
Where the proprietary product wins on paperwork
The proprietary program I use most has a streamlined financial assessment for credit scores above 720. FHA HECMs do not offer that. There is also no seasoning requirement. On a HECM, if you pulled cash out through a refinance or a HELOC, you may have to wait a year before you qualify. The proprietary side does not make you wait.
Those are the kinds of differences that decide a file, and they have nothing to do with how expensive your house is.
| What matters most to you | Better program |
|---|---|
| A line of credit that grows over time | HECM |
| The lowest interest rate | HECM |
| Protecting a spouse who is not on the loan | HECM |
| A home worth under $300,000 | HECM |
| A home worth more than $1.25 million | Jumbo |
| Reaching a higher share of your equity | Jumbo |
| Borrowing between 55 and 61 in Colorado, Florida or Michigan | Jumbo |
| Skipping the 12 month wait after a cash-out refinance or HELOC | Jumbo |
| Less income documentation with a credit score above 720 | Jumbo |
Who are the jumbo reverse mortgage lenders?
Four proprietary programs make up most of the jumbo reverse mortgage market: HomeSafe from Finance of America, Secure Equity from Mutual of Omaha, Platinum from Longbridge Financial, and Choice from Smartfi Home Loans. All four lend up to $4 million, none of them charge FHA mortgage insurance, and all four start at age 55 in states that permit it.
Those four names cover far more of the market than it looks like from the outside. Most jumbo reverse mortgage lenders are offering one of these four programs underneath, under their own brand name, having licensed the program rather than built it. That is worth knowing before you spend a week collecting quotes that turn out to be the same loan.
| Program | HomeSafe | Secure Equity | Platinum | Choice |
|---|---|---|---|---|
| Offered by | Finance of America | Mutual of Omaha | Longbridge Financial | Smartfi Home Loans |
| Maximum loan | $4 million | $4 million | $4 million | $4 million |
| Minimum age | 55; 60 in Washington, 62 in Texas | 55 where the state allows | 55 in select states | 55 in most states |
| What sets it apart | A second-lien version leaves your existing first mortgage in place | An adjustable version carries a line of credit, alongside Fixed and Fixed Plus | Preserve sets aside 10% to 40% of your equity for heirs, on homes worth $450,000 and up | Wholesale only, so it comes through a broker, and it covers some condos FHA will not approve |
I am not affiliated with, endorsed by, or speaking for any of these companies. This is a summary of what each one publishes about its own program, current as of September 2026. Program terms change, so confirm anything here against the lender before you rely on it.
Notice what is missing from that table. None of the four publishes its origination fee, its current rate, its full state list, or its line of credit terms. Those are the numbers that actually decide which program is better for you, and they live on rate sheets that move weekly, not on websites. Anyone comparing these programs for you should be putting those four numbers side by side in writing. If a quote does not show you the principal limit, the rate, the margin and the total closing costs together, it is not a comparison.
The four shapes these programs come in
Across all four programs, a jumbo reverse mortgage takes one of four forms: a fixed-rate loan that funds in full at closing, a line of credit you draw from over time, a second mortgage that leaves your existing first loan untouched, and versions of each that hold back a set-aside to pay your property taxes and insurance.
1. The fixed-rate draw. Everything funds at closing at one rate that never changes. This is the most common proprietary structure and the simplest to explain. It suits someone paying off an existing mortgage or buying out a sibling, where the whole number is needed on day one. The trade is that you take the interest on the full balance from the start.
There is also a second-lien version of this. Rather than paying your mortgage off, a second reverse mortgage is recorded behind it, which is the route to take when the rate on your current loan is one you do not want to lose.
2. The line of credit. You draw what you need when you need it and interest accrues only on what you have taken. Worth understanding clearly: a proprietary line generally does not grow the way a HECM line does. The HECM credit line increases every year whether you use it or not, and that growth feature is the single best reason to choose the government program when the home value fits under the FHA limit.
3. The second mortgage. This one solves a problem that did not exist five years ago. A lot of homeowners are sitting on a first mortgage in the 3% range and will not give it up for anything. A second-lien proprietary reverse lets that first loan stay exactly where it is and pulls equity behind it, with no monthly payment on the new money. Availability varies by state, so it is worth asking about instead of assuming.
4. The set-aside version. Most programs offer a variant that carves out part of the proceeds to cover property taxes and homeowners insurance for the life of the loan. Sometimes the file requires it, sometimes a borrower just wants the bill handled. Either way it reduces what you can take at closing, so it belongs in the conversation early.
One thing to know before you shop
This is the part that costs people the most time. Two quotes carrying completely different product names are frequently the same loan wearing a different label, because there are far more brand names in this category than there are programs. Do not shop the branding. Shop the principal limit, the rate, the margin and the closing costs, and make whoever is quoting you put those four numbers side by side.
So who are these actually for?
Not just people with expensive homes. In my experience they fit four groups: homeowners who want to borrow a higher percentage of their equity than the FHA program allows, condo owners, borrowers who are too young for a HECM in a state that permits it, and people who want the process to be simpler and faster. Having proprietary options from several lenders means I can help people the government program leaves out.
If your home is worth more than about $1.25 million, or you are between 55 and 62 in a state that allows it, run both side by side before you assume the government program is your only option. You can see how the products line up in my reverse mortgage comparison table, or read the fuller breakdown of proprietary and jumbo reverse mortgage types.
FAQ
What is a jumbo reverse mortgage?
A jumbo reverse mortgage is a private lender’s own reverse mortgage, also called a proprietary reverse mortgage. It is not insured by FHA, which lets it recognize home values above the 2026 HECM limit of $1,249,125. Some programs count home values up to $10 million and lend up to about $4 million.
How is a jumbo reverse mortgage different from a HECM?
The five differences that matter are the maximum claim amount, the maximum loan amount, the minimum home value, the minimum borrower age, and how a non-borrowing spouse is treated. The HECM also has a better line of credit and a lower interest rate, while the proprietary product has lighter underwriting for strong credit and no seasoning wait.
Can you get a jumbo reverse mortgage at age 55?
It depends on your state. The government-insured HECM is age 62 everywhere. Proprietary programs start at 55 in Colorado, Florida and Michigan, at 60 in Washington, and at 62 in Texas, so there is no age advantage in Texas.
Does a jumbo reverse mortgage protect a non-borrowing spouse?
Usually not. On an FHA HECM an eligible non-borrowing spouse can remain in the home after the borrower dies. On most proprietary jumbo products that spouse is unprotected and would need to pay off the loan, refinance the property, or sell it.
Do you need a high-value home to use a proprietary reverse mortgage?
No. Many borrowers use a proprietary loan on a home worth less than the FHA limit because it fits their goals better. It can allow a higher percentage of equity, work more easily for condo owners, and close with less documentation for borrowers with credit scores above 720.
Which lenders offer jumbo reverse mortgages?
Four proprietary programs cover most of the market: HomeSafe from Finance of America, Secure Equity from Mutual of Omaha, Platinum from Longbridge Financial, and Choice from Smartfi Home Loans. Many jumbo reverse mortgage lenders offer one of those four programs under their own brand name, so comparing quotes means comparing the underlying program rather than the label on the cover sheet.
Questions about whether a jumbo or a standard reverse mortgage fits your home? Call or text me at 720-449-6622, or get in touch here.
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Christopher Gibson (NMLS #1910430) is an independent mortgage and reverse mortgage broker with C2 Financial Corporation (NMLS #135622), serving homeowners across Washington, Colorado, Texas, Florida, and Michigan. He holds a 5.0-star Google rating. Call or text 720-449-6622.
