HECM reverse mortgages are limited by the FHA lending limit. Once a Florida home is worth more than approximately 1.15 million, HECM stops pulling more equity against the additional value. For homeowners with one-point-five, two, or three million dollar homes, that ceiling leaves a lot of equity locked up and unusable.
A jumbo reverse mortgage, also called a proprietary reverse, solves that problem. These are private-lender reverse mortgage products with much higher lending limits, often up to four million or more. For Florida’s coastal homeowners and high-value inland markets, jumbo reverse is frequently the only real path to accessing meaningful equity without monthly payments.
This is how jumbo reverse works, how it differs from HECM, and where to get one funded.
The HECM Limit Problem
HECM calculates the maximum claim amount based on the lesser of the FHA lending limit, the appraised value of the home, or the HECM program’s maximum claim amount. In practice, this caps how much equity the program will let you access regardless of how valuable your home is.
On a one-point-one-five million dollar home, HECM can work well. On a three-million-dollar home, HECM leaves roughly 1.85 million of value unusable from a reverse perspective. That is the reason jumbo reverse exists.
How Jumbo Reverse Works
A jumbo reverse is structured similarly to HECM but without FHA insurance. The homeowner borrows against home equity with no monthly payments. The loan is repaid when the home is sold, the borrower moves out permanently, or the borrower passes away. The lender holds the note or sells it into a private investor market rather than running it through HUD.
Because the loan is not federally insured, the lender absorbs all the risk. That shapes the pricing, the loan-to-value limits, and the borrower requirements. Jumbo reverse programs generally have slightly lower loan-to-value percentages than HECM at comparable ages but much higher absolute loan amounts because the underlying home values are higher.
Loan Limits on Jumbo Reverse
Most jumbo reverse programs cap loans at four million. A handful of programs stretch to six million on specific properties. For Florida homeowners in Palm Beach, Naples, Miami Beach, or other high-value markets, these limits open up real planning options that HECM simply cannot support.
Fixed vs Adjustable Jumbo Reverse
Jumbo reverse is available in both fixed and adjustable rate structures. Fixed rate jumbo reverse is usually structured as a single lump-sum draw at closing. Once you draw the money, the balance accrues interest at the fixed rate for the life of the loan.
Adjustable rate jumbo reverse typically offers a line of credit structure. You draw what you need when you need it. Interest accrues only on the drawn balance. Some programs offer a growing line of credit feature similar to HECM.
The right choice depends on how you plan to use the money. Lump-sum fixed works for one-time uses like paying off a mortgage or funding a major purchase. Line of credit adjustable works for ongoing access to funds.
Age Minimums
HECM requires all borrowers on title to be sixty-two or older. Jumbo reverse programs often start at fifty-five on some products and sixty-two on others. This is another way jumbo reverse opens doors that HECM cannot.
The MIP Advantage
HECM charges an upfront mortgage insurance premium of two percent of the maximum claim amount and an ongoing MIP of half a percent annually on the loan balance. On a high-value home, these numbers add up meaningfully.
Jumbo reverse does not charge FHA MIP. The lender has priced the risk into the rate structure, but the absence of separate insurance costs often delivers a lower all-in cost on high-value homes. For borrowers paying close attention to loan costs over a long holding period, this can be a decisive factor.
Example: HECM vs Jumbo on a Two Million Dollar Home
On a two million dollar Florida home with a borrower age seventy-two, HECM might unlock roughly five hundred thousand in equity before MIP and closing costs (numbers vary by current rates and exact program specifications). A jumbo reverse on the same home might unlock nine hundred thousand or more, with no MIP and a single proprietary closing cost structure.
The exact numbers depend on current interest rates, borrower age, and the specific jumbo reverse program. The directional difference is large enough that it is usually worth running both quotes.
What to Consider Before Choosing
How long you plan to stay in the home. Reverse mortgages make the most financial sense when you plan to stay for the long haul.
Whether you want to leave the home to heirs. A reverse mortgage reduces the equity available to heirs. Heirs can pay off the reverse to keep the home or sell it to settle the loan.
Whether your spouse is on title and meets the program age minimum. Non-borrowing spouse rules are different across programs and deserve careful attention.
Whether you need a lump sum or flexible access. This should drive fixed vs adjustable.
Where Jumbo Reverse Mortgages Get Funded in Florida
1. Select Home Loans
Select Home Loans writes jumbo reverse mortgages in Florida alongside HECM and non-FHA reverse products. Because jumbo reverse is a specialty product, the right lender match matters. Working with a team that runs both HECM and jumbo side by side means you see the numbers for each before committing. Call (888) 550-3296 or visit selecthomeloans.com.
2. Finance of America Reverse
Finance of America Reverse is the largest dedicated reverse mortgage lender in the country and a driving force behind proprietary reverse products. Their HomeSafe product line covers many of the non-FHA and jumbo reverse scenarios that HECM cannot handle. Worth quoting for comparison on almost any non-standard reverse file.
3. Longbridge Financial
Longbridge Financial is a national reverse mortgage specialist with a strong proprietary product called Platinum. They have been active on jumbo reverse and are generally competitive on both HECM and non-FHA options.
4. Mutual of Omaha Reverse
Mutual of Omaha has one of the more recognized brands in reverse mortgage lending. They write HECM and a proprietary product line and are a good option for borrowers who value a well-known brand name.
5. Fairway Reverse Mortgage Division
Fairway has a dedicated reverse mortgage division that services HECM and proprietary reverse products. Their national retail footprint means most Florida homeowners are within reach of a local officer.
Ready to Talk Through Your Scenario?
Ready to talk to someone who actually knows this program? Call Select Home Loans at (888) 550-3296 or visit selecthomeloans.com to get started. A quick conversation can tell you within a few minutes whether this is the right fit for your scenario.
Disclaimer
Disclaimer: This list is opinion-based and presented in no particular order. Lender programs, rates, guidelines, and availability change frequently. Always confirm current terms directly with each lender before making a decision.
