When most Florida homeowners hear the phrase reverse mortgage, they think HECM, the Home Equity Conversion Mortgage insured by FHA. That is the most common reverse product, and it is a great fit for many borrowers. But it is not the only one, and for a meaningful slice of Florida seniors, it is actually not the best one.
Proprietary reverse mortgages, also called non-FHA or jumbo reverse mortgages, are products created and held by private lenders rather than insured by the federal government. They exist precisely because HECM has limits, rules, and quirks that do not fit every homeowner. For higher home values, younger ages, or a desire to avoid mortgage insurance, a proprietary reverse is often the cleaner answer.
This is what a non-FHA reverse mortgage actually is, how it compares to HECM, who wins with each, and where Florida homeowners can get one.
What a HECM Reverse Mortgage Is
A HECM is a reverse mortgage insured by FHA. The program has been around for decades and is well understood. HECM allows homeowners aged sixty-two or older to borrow against their home equity without making monthly mortgage payments. The loan is repaid when the borrower sells the home, moves out permanently, or passes away.
HECM includes an FHA mortgage insurance premium, which protects the borrower from owing more than the home is worth at payoff and protects the lender from loss. That insurance has real value but it also adds real cost.
What a Non-FHA Reverse Mortgage Is
A proprietary reverse mortgage is a reverse loan product created by a private lender. It does not carry FHA insurance, it does not follow HECM program rules, and it is designed to solve specific scenarios HECM cannot address. The most common use cases are high home values and younger borrowers.
Non-FHA reverse products have loan limits that can go to four million or more, compared to the HECM limit that sits just above one million. Age minimums on some proprietary products start at fifty-five, compared to HECM’s sixty-two.
Key Differences Worth Understanding
Loan Limits
HECM maxes out near the FHA lending limit, which historically has been around 1.15 million depending on the year. Proprietary reverses can go to four million or higher on certain programs. For a Florida homeowner with a two million dollar home, the difference is dramatic.
Age Minimum
HECM requires all borrowers on title to be sixty-two or older. Proprietary reverses often start at fifty-five. For younger retirees or homeowners who retired early due to health, the age flexibility matters.
Mortgage Insurance
HECM carries both upfront and ongoing FHA mortgage insurance premium. Proprietary reverses usually do not. The absence of MIP is a meaningful cost savings over the life of the loan.
Program Rules
HECM has well-defined, government-set rules on payout options, financial assessment, servicing, and counseling. Proprietary programs vary by lender. Counseling is still required on most, but the details of payouts and underwriting are lender-specific.
When a Non-FHA Reverse Wins
High home values. If the home is worth more than the FHA lending limit, HECM only lets the borrower access equity up to the limit. A proprietary reverse unlocks equity above that ceiling.
Younger borrowers. Homeowners between fifty-five and sixty-two cannot use HECM. Proprietary reverses are available in this age band and can be the only option.
MIP avoidance. Borrowers who specifically want to avoid the mortgage insurance premium often choose proprietary products for the lower all-in cost.
Condominium flexibility. Some proprietary reverse products have more flexible condo approval guidelines than HECM, which requires specific FHA condo approval for the building.
When HECM Still Wins
Moderate home values inside the FHA limit, borrowers who want the protections of federal insurance, those who value the well-established program rules and servicing standards, and borrowers seeking line-of-credit features that grow over time, which is a HECM feature some proprietary products lack.
The right answer depends on the borrower’s situation, not which product sounds better in isolation.
Counseling Is Still Required
Every reverse mortgage, HECM or proprietary, requires HUD-approved counseling before closing. This is a protection for the borrower. Counseling typically takes sixty to ninety minutes and costs around one hundred twenty-five dollars. It is worth taking seriously. A good counselor will explain the product structure, costs, and alternatives in plain language.
Common Non-FHA Reverse Scenarios in Florida
A Naples homeowner with a two point four million home wants to access three hundred fifty thousand in equity without monthly payments. HECM caps out below where the math works. A proprietary reverse closes the gap.
A fifty-eight year old homeowner in Boca Raton took early retirement for health reasons and needs a reverse to preserve savings. HECM is not available. Some proprietary reverse products are.
A Miami homeowner owns a condo in a building without FHA approval. HECM cannot be placed. A proprietary reverse that has approved the building can be.
Where Non-FHA Reverse Mortgages Get Funded in Florida
1. Select Home Loans
Select Home Loans offers both HECM and non-FHA proprietary reverse mortgages in Florida. Because the team is not tied to a single lender, borrowers get an honest comparison of HECM vs proprietary rather than a pitch biased toward whichever the lender carries. Call (888) 550-3296 or visit selecthomeloans.com to compare options side by side.
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.
