Jumbo Reverse Mortgage Lenders
If you own a high-value home and want to consider a jumbo reverse mortgage, check out our picks for the top jumbo reverse mortgage lenders to help guide your search.
- Great Mobile App
- Emphasis on Consumer Education
- 4 Reverse Mortgage Loan Options
Mutual of Omaha Reverse Mortgage is committed to educating customers to help them find the right loan for their needs. Consumers can learn about reverse mortgages and apply for a loan using the ground-breaking mobile app or the website.
- Great Service
- Excellent Customer Reviews
- Competitive Pricing
As a member of the National Reverse Mortgage Lenders Association (NRMLA), Finance of America Reverse has retailers licensed in 43 states and a wholesale division licensed in 42 states and Puerto Rico.
Jumbo Reverse Mortgage Lenders Reviews
American Advisors Group (AAG) Review
Great Customer Service |
American Advisors Group (AAG) offers AAG Advantage – its jumbo reverse mortgage loan – which gives you features associated with most jumbo reverse mortgages. Features include no capital gains tax, no monthly mortgage payments and access to your loan proceeds in one lump sum.
- Loan amounts: up to $4 million
- Credit score: 580
- States served: All states except MA
AAG excels in making funds quickly available, usually within 30 days from application submission to close. Not every applicant will get their reverse mortgage right away, but many of AAG’s satisfied customers mention fast closing times in their reviews. (One customer said the process from the first inquiry call until closing took about six weeks.)
Read our comprehensive American Advisors Group review for more details on the products the company offers.
Community First National Bank Review
Great Rates |
In addition to HECM loans, Community First National Bank offers jumbo reverse mortgages up to $4 million. You can apply for a reverse mortgage loan at Community First National Bank by visiting a local branch, calling a representative, or filling out an online contact form.
- Loan amounts: up to $4 million
- Credit score: Not disclosed
- States served: Not disclosed
Community First National Bank has also earned the most customer reviews on Retirement Living—all of which are five stars. Customers praise this business for efficiency, professionalism, and kindness throughout the reverse mortgage process.
Mutual of Omaha Reverse Review
Great Mobile App |
Mutual of Omaha offers four reverse mortgage solutions with no monthly payments. It streamlines the application process by offering a mobile app where you can upload photos and documents, as well as communicate with family members, financial advisors, and HECM specialists.
- Loan amounts: up to $4 million
- Credit score: No minimum
- States served: All states except NY and WV
The information on the website is pretty generalized and lacks specifics on reverse mortgage fees, qualifying statistics, and who to contact to start the loan process. However, a six-page information kit is available for instant download on the website. To determine Mutual of Omaha’s credit requirements, we spoke with a company representative who told us that the company does not have a minimum credit score, but it is considered during the review process.
To learn more, read our full Mutual of Omaha Reverse review.
Finance of America Reverse Review
Great Service |
Finance of America Reverse (FAR) is licensed in 50 states and Puerto Rico and is a member of the National Reverse Mortgage Lenders Association.
If you need a reverse mortgage and are unfamiliar with the process, FAR is a good place to start. Its team of reverse mortgage specialists offers attentive support, and customer reviews rate the agents as knowledgeable and courteous. Most loans originated by FAR are government-secured HECM loans, but you can also get a jumbo reverse mortgage earlier (age 55 or more) using its HomeSafe option if you live in certain states. These loans eliminate mortgage insurance premiums and have options for no origination fees and fixed interest rates.
- Loan amounts: up to $4 million
- Credit score: 620
- States served: All 50 states (HomeSafe® only available in select states)
In addition to its commitment to customer education, we like FARs online reverse mortgage calculator that will help you run the numbers based on your home’s equity. This feature is especially helpful because you don’t have to submit contact information to get a funds estimate. Finance of America Reverse is BBB-accredited.
To identify top jumbo reverse mortgage providers, we analyzed 10 data points to give you a well-rounded review of each provider. We sourced feedback and reviews from real consumers, contacted lenders, and talked with mortgage experts to narrow down our original list of 12 reverse mortgage lenders. We also considered these features:
- State licensure and/or credentials
- Service area
- Loan options available
- Eligibility criteria
- Costs and fees
- Closing time frames
- Access to educational information
- Customer service availability
- Consumer reviews
We also reached out to companies and requested additional information that could help customers make a responsible choice, like context surrounding jumbo reverse mortgage fees and access to educational resources given to new customers.
Basically, we followed our own buying tips to uncover the best providers. Our favorite companies had a calculator on their site to get a quick sample quote, customer-centered service, and multi-state licenses. Companies that obscured their prices, had difficult or confusing policies and procedures, and/or limited loan options were eliminated. The result of our analysis is the best reverse mortgage companies for you, a friend or a family member to consider.
Some of the resources we used to determine our best jumbo reverse mortgage companies included:
- To verify licensing and credentials of reverse mortgage companies: Nationwide Mortgage Licensing System (NMLS) and National Reverse Mortgage Lenders Association (NRMLA)
- To verify accreditation and check for complaints against the business: Better Business Bureau (BBB)
- To understand reverse mortgage eligibility requirements and verify trusted lenders: U.S. Department of Housing and Urban Development and Consumer Financial Protection Bureau (CFPB)
Our Experience with Jumbo Reverse Mortgage Lenders
Our experience with jumbo reverse mortgage companies was mostly positive. Our research showed that most lenders are upfront about reverse mortgage fees, the process for obtaining a loan, and its eligibility requirements. We’re also very pleased with the lenders’ commitment to customer service and consumer education.
Community First National Bank
Customer service is so important in the reverse mortgage industry, given its complexity and the government regulations associated with the loans. Community First National Bank gets our praise for customer service and satisfaction because it is the most reviewed mortgage lender on Retirement Living—it’s also the highest-rated. Customer reviews praise Community First National Bank for its respectful agents, fast closing speeds, and in-depth industry knowledge.
American Advisors Group (AAG)
Lenders prioritizing education throughout the process topped our list, especially regarding tax implications and future family responsibilities. AAG stood out for education because it was the only lender that gave us resources tailored to the reverse mortgage borrower’s family, heirs, and loved ones. This is important because getting a reverse mortgage is a decision that affects more people than just the borrowers. We found AAG’s resources helpful, thoughtful, and detailed.
What Is a Jumbo Reverse Mortgage?
Sometimes referred to as a proprietary reverse mortgage, a jumbo reverse mortgage is designed for borrowers with high-value homes to access more of their home equity than they typically would with a regular government-insured HECM reverse mortgage. Jumbo reverse mortgages don’t require upfront or monthly mortgage insurance premiums like a traditional reverse mortgage does.
How to Choose a Jumbo Reverse Mortgage
- Understand all jumbo reverse mortgage terms and features before applying for the loan.
- Compare lenders, finance charges, and fees.
- Have a plan for managing the money received from a jumbo reverse mortgage.
- Confirm what borrower protections your lender offers, as the FHA does not back jumbo loans.
Jumbo Reverse Mortgages vs. Traditional Reverse Mortgages
Whether you get a traditional or jumbo reverse mortgage, you’ll go through the same application process: select a lender, complete financial counseling, get a home appraisal, and close the loan. Jumbo and traditional reverse mortgages also share these basic loan features:
- Both loans increase over time, and the payment becomes due when you sell or leave the home.
- Homeowners can use proceeds from either reverse mortgage however they choose, although the jumbo reverse mortgages may allow for more flexibility in paying other debts if needed to qualify.
Like a traditional reverse mortgage, you’ll need to have at least 30% to 70% equity in the home and live in the home as a primary residence to get a jumbo reverse mortgage. However, jumbo loans have lower age requirements—many lenders will offer loans to those as young as 55, depending on the state.
Payouts and Disbursements
The other major difference between these reverse mortgage types is loan limits and how you can receive your money. The maximum home value used on a reverse mortgage with government backing is $1,039,800 in 2023. However, if you qualify for a private or jumbo reverse mortgage loan, you use a home valued as high as $10 million, which could mean proceeds of up to $4 million.
Once you’re approved for a jumbo loan, you may need to take out an initial minimum amount as a lump sum. Then, depending on the product type, you can choose payouts in monthly installments.
You incur several fees when you get a jumbo reverse mortgage, including potentially higher interest rates, origination fees, appraisal costs (a required second appraisal for homes valued over $2 million), and closing costs. Jumbo reverse mortgage interest rates are typically higher compared to traditional reverse mortgages. But jumbo loans do not charge mortgage insurance premiums. This means you’ll avoid an upfront charge of 2% of the loan amount and an annual charge of 0.5% of the loan amount.
A jumbo reverse mortgage does not include protections guaranteed by the Federal Housing Administration (FHA). However, jumbo reverse mortgage lenders typically offer similar borrower protections, such as the non-recourse protection requiring lenders to absorb the cost difference if the loan balance is ever more than the home’s value in the future. For example, this helps ensure you or your heirs won’t owe more than the home’s worth when it’s sold.
Top Jumbo Reverse Mortgage Lenders of 2023
- Great Closing Speed – American Advisors Group (AAG)
- Great Rates – Community First National Bank
- Great Mobile App – Mutual of Omaha Reverse
- Great Service – Finance of America Reverse
- Great Online Quote – Longbridge Financial
Jumbo Reverse Mortgage Benefits
For those who own a high-value family home, a jumbo reverse mortgage can allow for an ideal retirement lifestyle while living in the house they know and love. You can use or invest the money as you see fit, such as traveling, paying for healthcare, or remodeling your home.
Jumbo loans are often offered with a fixed interest rate, which can protect from costly rate increases later, but some jumbo reverse mortgages are offered with adjustable rates and lines of credit. Discuss the best option for your needs with your lender. Additionally, you aren’t responsible for mortgage insurance payments, which is required with a standard reverse mortgage.
Many areas of the country have high-valued homes and have seen significant home appreciation above and beyond the FHA limits, so jumbo reverse mortgages allow homeowners in these situations to convert home equity without having to sell the house and incur a corresponding monthly payment on a large balance.
Finally, most jumbo reverse mortgage lenders offer borrower protections that are similar to the FHA regulations and guidelines for traditional loans of this type. Make it a point to ask about lender policies for allowing a spouse or partner to remain on the property if the borrower dies or enters a senior care facility.
Jumbo Reverse Mortgage Risks
If you plan to move in the coming years, a standard home equity loan or even a tax deferral program for property taxes could be better options than a reverse mortgage for accessing funds. You should also discuss reverse mortgages with your heirs. If you intend to leave your home to heirs after your death, a jumbo reverse mortgage could require the property to be sold back to the lender to repay the loan after the homeowner’s death if the heirs don’t have other funds available to pay off the balance. Remember, beginning balances and loan amounts tend to be higher with jumbo loans.
While jumbo reverse mortgages can be a tool for living well during retirement, you’ll need to consider these risks before borrowing the funds:
- The interest rates are higher: Jumbo interest rates are about 2% higher than a traditional reverse mortgage. This is because FHA does not back the loan, so the lender charges more for the risk.
- The loan balance keeps growing: Assuming no prepayments are made, the balance on any reverse mortgage increases each month, so you could owe more than the property is worth when the loan ends. The only way to prevent becoming upside-down on the loan is to ensure the lender offers non-recourse protections discussed earlier. Without a contract guaranteeing the lender will absorb the loss, you could lose your home or your heirs could be responsible for paying the balance.
- There are continual home-related costs: With a jumbo or traditional reverse mortgage, you must continue to pay property taxes, insurance, maintenance costs and association fees. It’s essential to have a plan to cover these costs to avoid being forced to sell the home.
- The loan funds must be managed properly: While getting a sizable payout from a jumbo reverse mortgage is a benefit, it can easily turn into a risk if you don’t know how to invest wisely or have a reliable financial advisor without a conflict of interest on hand to help you make responsible decisions.
Frequently Asked Questions about Jumbo Reverse Mortgage Lenders
Will a jumbo reverse mortgage negatively affect my Social Security or Medicare benefits?
When it comes to taxes and benefits, a jumbo reverse mortgage does not typically impact Social Security or Medicare because a reverse mortgage is not considered income. However, a loan could affect means-tested programs like SSI and Medicaid. Always check with a benefits professional to answer any questions you may have before securing a jumbo reverse mortgage.
What happens to my jumbo reverse mortgage if I need to enter an assisted living facility or nursing home?
Each jumbo reverse mortgage product can contain different provisions, so it is imperative to understand residency requirements and any non-borrowing spouse provisions. If you enter an assisted living facility or a nursing home for less than 12 months, you can return to your home without the loan being triggered “due and payable.” If you live out of the home for more than a year, the loan will likely be called “due and payable,” and you may have to sell your house to repay the loan. However, if you are married and a non-borrowing still lives in the home, a non-recourse loan provision allows your spouse to continue living on the property if his or her name is on the loan documents. As long as one borrower remains in the home, the loan can stay in force.
What are the main reasons homeowners pursue a jumbo reverse mortgage?
Homeowners apply for a jumbo reverse mortgage for a host of reasons, including:
- Home remodeling needs
- Gifting an early inheritance to beneficiaries
- Buying rental property or vacation home
- Assisting children with a home purchase
- Helping pay for grandchildren’s education
Which types of properties are eligible for a jumbo reverse mortgage?
The most common property eligible for a jumbo reverse mortgage is a traditional single-family home valued at $1,000,000 or more. Some lenders consider condominiums qualified if the property is valued at least $500,000 and meets specific requirements. Some properties that may not be eligible for traditional HECMs or deemed FHA-insurable may qualify for jumbo reverse mortgages.
I”m over 62, but my spouse is not. Can we still get a jumbo reverse mortgage?
Yes, borrowers who are at least age 55 can get a proprietary loan through a private lender, but availability may vary by state. Remember, if you want an FHA-insured traditional HECM reverse mortgage, HUD allows spouses on the title under 62 to get a loan as long as they are listed as the “non-borrowing” spouse and one spouse is 62 or older.
Concluding Thoughts on Jumbo Reverse Mortgage Lenders
Like any borrowing decision, a jumbo reverse mortgage loan is a weighty consideration. When managed correctly, these loans can provide you more freedom during retirement.
Jumbo reverse mortgages provide retirees with options to pursue their dreams, pay for medical expenses, and live comfortably. Investigate lenders and the jumbo reverse mortgage loans offered and ask about non-recourse protections to ensure you’re covered if you need to move or pass away. Not all lenders will offer all the private jumbo reverse mortgages on the market, so it can benefit you to shop around. Get all guarantees in writing and consider hiring a real estate attorney to go over the loan documents before closing if necessary.