I am Christopher Gibson, and most people are surprised there is more than one kind. But the choice matters. A proprietary loan opens doors the HECM cannot, and the HECM has protections a proprietary loan may not. Here are the types of reverse mortgages, and how to tell which one is yours.
Updated
On this page
- The HECM
- Proprietary reverse mortgages
- The proprietary programs I can place
- The two types of reverse mortgages
- Fixed rate vs adjustable rate reverse mortgages
- Which type of reverse mortgage fits you
- Authoritative sources
- Buying a home with a reverse mortgage
- Reverse mortgage calculator
- Frequently asked questions
- Explore all guides
- Areas I serve
The HECM: the government-insured standard
The Home Equity Conversion Mortgage, or HECM, is the reverse mortgage most people mean. It is insured by the FHA and available at age 62 and up. It also counts your home value up to the federal lending limit ($1,249,125 in 2026). Its signature strengths are the non-recourse protection and the growing line of credit. So if your home is at or under the limit, the HECM is usually the product on the table. The reverse mortgage guide covers how it works.
Proprietary (jumbo) reverse mortgages
In contrast, proprietary reverse mortgages are private loans, not FHA-insured, built for higher-value homes above the federal limit. In fact, they open up three things the HECM cannot. The first is reaching equity on a home worth well over the limit. A second is a lower minimum age, as young as 55. And the third is condos, since skipping FHA rules often lets them work without FHA approval, one of their best uses. That said, the trade is real. Protections like non-recourse and the growing line vary by program, so the terms deserve a close read. So if you own a high-value home, see how this fits alongside the requirements.
The proprietary programs I can place
Because I broker rather than work for one lender, I can quote these side by side. Terms move, so treat this as a starting point and ask me what is current before you plan around any single line.
| Program | Minimum age | Maximum | How you take the money | Worth knowing |
|---|---|---|---|---|
| Finance of America HomeSafe | 55, though 60 in Washington and 62 in Texas | $4,000,000 | Lump sum, monthly, line of credit, or a mix | No FHA mortgage insurance and no federal lending limit |
| Finance of America HomeSafe Second | 55, higher in some states | $50,000 to $4,000,000 | Fixed-rate lump sum | A second lien, so you keep your existing first mortgage. Available in all five states I serve |
| Longbridge Platinum | 55 in select states, otherwise 62 | $4,000,000 | Fixed lump sum, or adjustable with a line of credit and term payments | Often works on a condo without FHA approval. The Platinum Preserve option sets aside 10% to 40% of your equity for heirs |
| Mutual of Omaha SecureEquity | 55 in several states | $4,000,000 | Fixed full draw, or an adjustable line of credit with a 25% draw at closing | The widest state footprint of the group. No manufactured homes |
| Smartfi Choice | Varies by state, as low as 55 | $4,000,000, no minimum loan size | All proceeds at closing | Shortened condo review. It does not allow a non-borrowing spouse, which rules it out for a lot of couples |
Two of these deserve a longer look. HomeSafe Second is the one people do not know exists. If you are sitting on a first mortgage at 3%, every other option here pays that loan off and you lose the rate. A second lien leaves it alone and adds no monthly payment of its own. Platinum Preserve is the answer to the most common objection I hear, which is some version of “I want to leave the house to my kids.” It carves out a fixed share of your equity that the loan cannot touch.
State availability is the part nobody publishes cleanly, and I would rather say “let me check” than print a list that is wrong by the time you read it. Tell me the state and the value and I will tell you in a day which of these actually work.
The two types of reverse mortgages, side by side
Here is the HECM and a proprietary loan on the same row. And every line is a real difference:
| Feature | HECM (government-insured) | Proprietary (jumbo) |
|---|---|---|
| Insured by | The federal government (FHA) | A private lender |
| Home value it suits | Up to the federal limit ($1,249,125 in 2026) | Higher-value homes, often above the limit |
| Minimum age | 62 | As low as 55 |
| Growing line of credit | Yes | Often not; varies by program |
| Non-recourse protection | Yes, built in | Varies by program, so read the terms |
| Upfront FHA mortgage insurance | Yes | No |
| A condo without FHA approval | Needs FHA or single-unit approval | Often works without FHA approval |
| HUD counseling required | Yes | Usually yes |
Fixed rate vs adjustable rate
Both types come in fixed and adjustable versions, and the choice shapes how you get the money. A fixed rate comes as one lump sum at closing, with the rate locked for life. That single draw is all it offers: no line of credit and no monthly distribution. The adjustable rate is what opens those up. You can take a line of credit, monthly distributions for life (tenure) or for a set term, or a mix, and it is the only way to get the growing line of credit.
That is why most people who want flexibility choose the adjustable-rate HECM. Its rates usually run lower than a fixed proprietary loan, and it gives you the line of credit and monthly distributions a fixed rate cannot. Proprietary programs rarely offer a true line of credit, if they offer one at all. So if you want a single sum for a one-time need, a fixed rate can be fine. If you want flexibility or a standby line, you want the adjustable HECM.
Which type of reverse mortgage fits you
So here is the short version. Is your home at or under the federal limit, and do you want the growing line and non-recourse protection? Then the HECM is usually the answer. But a proprietary loan is the one to look at in three cases. First, your home is worth well above the limit. Second, you are between 55 and 61. Or your condo lacks FHA approval. Not sure which side you are on? Try the decision tool. Or send me your age, home value, and any existing mortgage balance, and I will point you to the right type. Same-day, and no credit pull to get a ballpark. Call or text 720-449-6622.
Reverse Mortgage Calculator
Let’s see which type fits your home and your goals.
A reverse mortgage is a loan. The balance grows over time and is repaid when the last borrower leaves the home. You keep the title, and you remain responsible for property taxes, homeowners insurance, and upkeep.
Authoritative sources
From the source: HUD’s HECM program and the industry site reversemortgage.org from NRMLA. For more, see the plain-English reverse mortgage guide, the requirements, a reverse mortgage vs a HELOC, and our resource library.
Buying a home with one
All of the above assumes you already own the home. You can also use a reverse mortgage to buy one. It is a single FHA transaction called HECM for Purchase: you bring a required investment of roughly 52% to 70% of the price depending on your age, the loan covers the rest, and there is no monthly principal-and-interest payment. It is the move for someone who owns free and clear and wants a newer or single-level home that costs more than the one they are selling.
Frequently asked questions
Which type of reverse mortgage is right for me?
It depends on your home and your goals. For most homeowners at or under the federal limit who want the growing line, the HECM usually wins. But if your home is worth more than the limit, or you are 55 to 61, or your condo lacks FHA approval, a proprietary loan often fits better. So the quickest way to know is to run your numbers with me.
What types of reverse mortgages are there?
Two main types. The HECM is the government-insured reverse mortgage most homeowners use, backed by the FHA and capped at the federal lending limit. Proprietary reverse mortgages are private, non-FHA loans built for higher-value homes above that limit, and some start as early as age 55. Within either, you pick a fixed or adjustable rate.
What is the difference between a HECM and a proprietary reverse mortgage?
The HECM is FHA-insured, non-recourse, and offers the growing line of credit, with a minimum age of 62 and a federal loan limit. A proprietary loan is privately insured, works on higher home values above that limit, can start at 55, and often works on condos that lack FHA approval. One tradeoff: proprietary programs rarely offer a true line of credit, if they offer one at all. Its protections vary by program, so the terms matter.
Can you get a reverse mortgage on a home worth more than the FHA limit?
Yes, that is exactly what proprietary (jumbo) reverse mortgages are for. The HECM only counts value up to the federal limit, so on a higher-value home a proprietary loan can reach equity the HECM cannot.
Is a proprietary reverse mortgage FHA-insured?
No. Proprietary reverse mortgages are insured by the private lender, not the FHA. That is why they skip the FHA mortgage insurance premium and the FHA condo-approval requirement, but it also means the protections vary from program to program.
Is a fixed or adjustable rate better?
It depends on how you want the money. A fixed rate comes as a single lump sum at closing, with no line of credit and no monthly distributions. An adjustable rate opens up the flexible options: a line of credit, monthly distributions for life (tenure) or a set term, or a mix, and it is the only way to get the growing line of credit. For most people who want flexibility, the adjustable-rate HECM wins on both counts: lower rates than a fixed proprietary loan, plus the line of credit and monthly distributions a fixed rate cannot offer.
What is a HECM?
HECM stands for Home Equity Conversion Mortgage, the reverse mortgage insured by the federal government through the FHA. It is by far the most common reverse mortgage, and that FHA insurance is what makes it non-recourse, so you or your heirs never owe more than the home is worth when it sells. Homeowners age 62 and older qualify. For a home valued above the FHA limit, a proprietary or jumbo reverse mortgage can lend more, and some of those start at age 55.
Have more questions? See our full reverse mortgage FAQ.
Can you take all the money from a reverse mortgage at once?
You can take a large lump sum, but usually not every available dollar on the first day, because first-year draws are capped on most loans. A fixed-rate reverse mortgage is built for a single lump-sum draw, while the adjustable-rate options let you take some now and leave the rest in a line of credit or as monthly payments.
What is a reverse mortgage tenure payment?
A tenure payment is a set monthly amount the loan pays you for as long as you live in the home, with no end date, almost like turning part of your equity into a steady paycheck. It is one of several payout options, alongside a lump sum, a line of credit, and a fixed-term payment, and you can combine them.
Learn how reverse mortgages work
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Areas I serve
I am licensed in five states and work with homeowners in each. Choose yours for local retirement detail.
About Christopher Gibson
I am Christopher Gibson, a mortgage broker and reverse mortgage specialist with C2 Financial (NMLS #1910430), licensed across Washington, Colorado, Texas, Florida, and Michigan. I have spent years matching homeowners 55+ to the right type of reverse mortgage, and telling them plainly when none of them fit. Call or text 720-449-6622 and we will find the right fit for your home, same day, with no credit pull to get a ballpark.