Jumbo reverse mortgage loans present an opportunity for older Americans to achieve greater financial comfort and expand their wealth. “Jumbo reverse mortgages” are an optimal option for affluent homeowners who have a desire to diversify their capital and invest in other aspects of life.

1.    To make home modifications or repairs

2.    To buy an investment property or a vacation home

3.    To help children purchase a property

4.    To provide children with an early inheritance

5.    To create college funds for grandchildren

6.    To establish a trust fund

7.    To cover in-home care costs

8.    To have more financial liquidity

9.    To maintain their current lifestyle

10.  To pay off other debts

Jumbo Reverse Mortgage Features

There is no upfront or annual mortgage insurance premiums.  The loan is a fixed-rate loan, but borrowers may opt to take less than the full amount available (you do have to realize that any funds you do not take will not be available later so make your choices wisely), the loan has a servicing fee and a no servicing fee option with different rates offered and will allow borrowers to use reverse mortgage proceeds to meet the income requirements as well as pay off debts to qualify.

For properties valued up to $2,000,000, only one appraisal is required (our underwriter will also utilize a desktop collateral analysis).  Both refinances and home purchases are allowed and on purchase transactions, sellers and interested parties can pay up to 6% contributions.

Loan amounts can go up to $4,000,000 with no cap on property values and there is still no recourse other than the property to borrowers or their heirs with this loan, just like the protections of a federally-insured HECM loan.

Jumbo Reverse Mortgage Highlights

*    Borrower Age 62 prior to closing

*    Eligible States – CA (More to come – soon!)

*    Minimum Home Value – $350,000

*    No Maximum Home Value Maximum Loan Amount – $4,000,000

*    Purchase Allows Seller/Interested Party Contributions to 6%

*    Condominiums – FHA and FNMA           approved or warrantable under Limited   Review Process

*    Choice of full or partial cash out disbursement at closing

*    No Upfront or Annual Mortgage Insurance Premium (MIP)

*    Non-Recourse Protection

Jumbo Reverse Mortgage Eligible Property Types:

a.    Single-family residence.

b.    Two- to four-family residences whereby the borrower(s) occupy one of the units.

c.    Townhomes (attached and detached).

d.    Maximum of 20 acres.

e.    Planned Unit Development (PUD).

f.    Condominium (FNMA approved, FNMA   warrantable projects under a Limited Review   process or FHA approved).

g.    Site condominium.

h.    Solar Lease with UW approval (attorney approval is not required)

Jumbo Reverse Mortgage Credit Requirements:

1.    A minimum credit score is 620 for all borrowers. (middle score)

2.    If two (2) borrowers on the loan, both must have a minimum of 620.

3.    If a borrower only has 2 credit scores, the lowest will be used.

4.    If a borrower only has 1 credit score, that is what is used.

5.    No scores due to lack of credit = NOT ELIGIBLE

The proprietary and jumbo reverse mortgages also a fantastic program and is also getting better all the time as well, but it is such a welcome sight to see programs like the Platinum Reverse mortgage coming into the market to help borrowers with higher valued homes or properties like condominiums that were great projects but just were not HUD-approved.

The additional funds available in some cases and the increased availability of the program to more borrowers is a great sign for reverse mortgage borrowers who have been limited to just the HUD program that never was meant to meet the needs of all properties.