Quick Answer
There are three types of reverse mortgages. The HECM (Home Equity Conversion Mortgage) is the most common — it's insured by the FHA, available at 62+, can be used for any purpose, and lends up to $1,249,125 in 2026. A proprietary (jumbo) reverse mortgage is a private loan for higher-value homes, often available starting around age 55 and lending well above the FHA limit, but without FHA insurance. A single-purpose reverse mortgage is offered by some state or local programs for one specific use (like property taxes or repairs) and is the lowest-cost but most restrictive option.
The Three Types at a Glance
Here are all three programs in one table. There's no single winner — which one fits depends mostly on your home's value, your age, and what you need the money for.
Side-by-side: HECM vs. proprietary (jumbo) vs. single-purpose reverse mortgages| Feature | HECM (FHA-Insured) | Proprietary (Jumbo) | Single-Purpose |
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| Minimum age | 62 | Often around 55 (varies by lender and state) | Varies by program |
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| Insured by the FHA | Yes | No | No |
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| 2026 lending limit | Home value up to $1,249,125 | Well above the FHA limit — often into the millions | Small amounts set by the program |
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| What the money can be used for | Any purpose | Any purpose | One approved purpose (usually property taxes or repairs) |
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| Payout options | Lump sum, growing credit line, or monthly | Varies by lender — often a lump sum | Single disbursement for the approved use |
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| Upfront cost | FHA insurance premium plus closing costs (can be financed) | No FHA premium, but generally higher rates | Lowest cost |
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| Non-recourse protection (never owe more than the home's value) | Yes — federally insured | Varies by lender | Varies by program |
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| Where it's available | Nationwide | Depends on lender and state | Only some state/local programs, with income limits |
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1. HECM — The FHA-Insured Standard
The Home Equity Conversion Mortgage is the most widely used reverse mortgage and the only one insured by the federal government (FHA/HUD). It's available to homeowners 62 and older, can be used for any purpose, and offers flexible payouts (lump sum, line of credit, or monthly). In 2026 it lends on home value up to $1,249,125. Its FHA insurance is what makes it non-recourse and provides protections like the growing line of credit and Non-Borrowing Spouse rules. It does carry mortgage insurance premiums, which add to the cost.
2. Proprietary (Jumbo) Reverse Mortgage
Proprietary reverse mortgages are private loans designed for higher-value homes that exceed the FHA lending limit. They can unlock far more equity (some programs go well into the millions) and are often available starting around age 55 depending on the lender and state. Because they aren't FHA-insured, they skip the FHA mortgage insurance premium but generally carry higher interest rates and fewer federal protections. They're ideal for owners of expensive California homes who'd leave equity on the table with a HECM.
3. Single-Purpose Reverse Mortgage
Single-purpose reverse mortgages are the least common and lowest-cost option, usually offered by some state or local government agencies and nonprofits. As the name says, the money can only be used for one lender-approved purpose — most often property taxes or home repairs. They aren't available everywhere and have income restrictions, but for a homeowner with a single specific need and limited income, they can be the cheapest route.
Which Type Is Right for You?
Most California homeowners use a HECM because of its flexibility and federal protections. If your home is worth more than the FHA limit, a proprietary jumbo program may free up significantly more equity. If you simply need to cover property taxes or a repair and want the lowest cost, a single-purpose loan (where available) may fit. The best way to compare is a personalized review of your age, home value, and goals.
How to Decide With a Local Specialist
The differences between these programs — especially HECM vs. jumbo for higher-value homes — can mean a large difference in how much equity you can access. Miguel works with both HECM and proprietary programs and can run the numbers side by side so you see exactly which one serves you best, with no obligation.
A Note on the Second-Lien Reverse Mortgage
Beyond the three main types above, one proprietary variant deserves a mention for a specific situation: the second-lien reverse mortgage. Rather than replacing your existing mortgage like a HECM or jumbo, it sits behind it as a second lien. If you have a low first-mortgage rate you refuse to give up, this product lets you pull cash from your equity without disturbing the first loan — and with no monthly payment on the new loan. It is not FHA-insured, is available in California from around age 55, and is not offered through every broker. Our second-lien reverse mortgage guide covers how it works in detail.
