Types of Reverse Mortgages: HECM vs. Proprietary (Jumbo) vs. Single-Purpose
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.
Not all reverse mortgages are the same. There are three distinct types, and the right one depends on your age, your home's value, and what you want to use the money for. Here is a clear comparison so you can see which fits your situation.
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.
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.
Key takeaways
- There are three types: HECM (FHA-insured), proprietary (jumbo), and single-purpose.
- The HECM is the most common — 62+, any purpose, up to $1,249,125 in 2026, with federal protections.
- Proprietary jumbo loans suit higher-value homes and may start around age 55, but lack FHA insurance.
- Single-purpose loans are lowest-cost but restricted to one approved use and aren't available everywhere.
- Comparing HECM vs. jumbo can mean a large difference in accessible equity for pricier homes.
Frequently asked questions
What is the most common type of reverse mortgage?
The HECM (Home Equity Conversion Mortgage). It's the FHA-insured program available to homeowners 62+, usable for any purpose, and it accounts for the large majority of reverse mortgages.
What's the difference between a HECM and a jumbo reverse mortgage?
A HECM is FHA-insured and lends up to $1,249,125 in 2026. A proprietary (jumbo) reverse mortgage is a private loan for higher-value homes that can lend far more, often starting around age 55, but without FHA insurance and usually at higher rates.
Can I get a reverse mortgage before age 62?
Not with a HECM, which requires age 62. Some proprietary (jumbo) programs are available starting around age 55, depending on the lender and state.
What is a single-purpose reverse mortgage?
A low-cost reverse mortgage offered by some state or local programs that can only be used for one approved purpose, such as property taxes or home repairs. Availability and income limits vary.