Reverse Mortgage Loans: HECM and Jumbo
A reverse mortgage lets homeowners 62 and older (55 and older with non-FHA programs) turn home equity into cash, a line of credit or monthly payments with no required monthly mortgage payment. I compare the FHA-insured HECM and non-FHA jumbo programs side by side so you see which one gives you more, at what cost.
Quick answer: reverse mortgage loans
A reverse mortgage loan pays you from your home equity instead of you paying the lender each month. To qualify for an FHA HECM, the youngest borrower must be 62, the home must be your primary residence with substantial equity, and you must pass a financial assessment and HUD counseling. Non-FHA jumbo programs start at 55 and lend on homes worth up to about $4 million.
- HECM limit: a HECM counts home value up to $1,249,125 in 2026; jumbo programs go to about $4 million.
- Equity: no fixed minimum, but most borrowers need roughly 40%–50% equity or more for the numbers to work.
- Credit: no hard minimum score; a financial assessment checks you can keep up with taxes, insurance and upkeep.
- Example rates: about 7.5%–8.5% (adjustable HECM), 8.55%–9% (fixed HECM, lump sum only), 9.5%–10% (non-FHA jumbo), as of late October 2026.
- Heirs: a HECM is non-recourse; heirs never owe more than the home is worth.
HECM vs. jumbo reverse mortgage at a glance
| FHA HECM | Non-FHA jumbo | |
|---|---|---|
| Minimum age | 62 (youngest borrower) | 55 where state law allows |
| Home value counted | Up to $1,249,125 (2026 limit) | Up to about $4 million |
| Insurance | FHA-insured, non-recourse | Not FHA-insured; no FHA insurance premium |
| Growing line of credit | Yes, the unused line grows over time | Varies by program |
| Payout options | Line of credit, monthly payments, lump sum (fixed rate) or a mix | Usually a lump sum or line of credit |
| Counseling | HUD-approved counseling required | Required where state law requires it |
| Example rates | About 7.5%–8.5% adjustable; 8.55%–9% fixed | About 9.5%–10% |
Example rates as of late October 2026: about 7.5%–8.5% for adjustable-rate HECMs, 8.55%–9% for fixed-rate HECMs (lump sum only), and 9.5%–10% for non-FHA jumbo programs. Examples only, not a quote; your rate depends on the program, your age, the home and the amount you take.
How a reverse mortgage loan works
With a regular mortgage you pay the lender every month and your balance goes down. A reverse mortgage works the other way: the lender pays you from your equity, and the balance grows over time as interest and fees are added. Nothing is due until the last borrower sells, moves out for good or passes away. Then the home is sold or refinanced to repay the loan, and any remaining equity goes to you or your heirs.
You keep the title and you keep living in your home. What you must do is live there as your primary residence and keep paying property taxes, homeowners insurance, HOA dues and maintenance. See how a reverse mortgage works for the full mechanics.
Program benefits
- No required monthly mortgage payment, which frees up cash flow in retirement.
- Pay off your current mortgage at closing and stop making that payment (how it works).
- A line of credit that grows with a HECM, so unused funds increase over time (why it grows).
- Non-recourse protection with a HECM: neither you nor your heirs owe more than the home is worth.
- Jumbo options from age 55 for higher-value homes, lending against values up to about $4 million.
- One broker, every option: HECM, jumbo, HELOC and home equity loan compared in one conversation.
Who qualifies
- Youngest borrower 62 or older for a HECM, or 55 or older for non-FHA programs where state law allows.
- The home is your primary residence: single-family, FHA-approved condo, 2–4 unit (you live in one unit), townhome or qualifying manufactured home.
- Enough equity for the payout to cover any existing mortgage; most borrowers need roughly 40%–50% or more.
- A financial assessment showing you can keep up with taxes, insurance and upkeep. There’s no hard credit score minimum.
- Completed HUD-approved counseling for a HECM.
- Property in one of the 23 states I’m licensed in.
Want the full checklist?
Each qualifying factor explained, including what’s not required: read the complete reverse mortgage requirements guide →
Reverse mortgages by state and city
Home values, property taxes and state rules change the numbers. Start with your area:
California reverse mortgages
HECM vs. jumbo math for California home values, plus Prop 13.
Los Angeles
Reverse mortgage guide for LA homeowners.
Orange County
Including coastal homes above the HECM limit.
San Diego
Reverse mortgage guide for San Diego County.
Phoenix
Reverse mortgage guide for the Phoenix area.
Denver
Reverse mortgage guide for the Denver area.
Miami
Reverse mortgage guide for South Florida.
Tampa
Reverse mortgage guide for the Tampa Bay area.
Nashville
Reverse mortgage guide for Middle Tennessee.
Go deeper: reverse mortgage requirements · reverse mortgage rates · closing costs · reverse mortgage calculator · HECM vs. jumbo · what happens when you die · HELOC vs. reverse mortgage
Frequently asked questions
What is the minimum age for a reverse mortgage?
The youngest borrower must be 62 for an FHA HECM. Our non-FHA (proprietary) reverse mortgages start at age 55 where state law allows.
How much can I get from a reverse mortgage?
It depends mainly on the youngest borrower’s age, the home’s value and current rates. A HECM counts home value only up to the 2026 limit of $1,249,125; non-FHA jumbo programs lend against values up to about $4 million. Older borrowers and higher-value homes generally qualify for more.
Do I have to make monthly payments on a reverse mortgage?
No monthly mortgage payment is required. You do have to keep paying property taxes, homeowners insurance, HOA dues and maintenance, and live in the home as your primary residence. You can make voluntary payments if you want to.
Can I get a reverse mortgage if I still have a mortgage?
Yes. It’s one of the most common uses: the reverse mortgage pays off your existing mortgage at closing, as long as your available proceeds are larger than the payoff.
Is there a credit score minimum for a reverse mortgage?
There’s no hard minimum score. Instead, a financial assessment checks that you can keep up with taxes, insurance and upkeep. That review is where most denials happen.
HECM or jumbo reverse mortgage: which is better?
A HECM is FHA-insured and fits most homes under the $1,249,125 limit, and it’s the only option with a line of credit that grows. Above that limit, a non-FHA jumbo program often provides more money and has no FHA insurance premium. Many homeowners should see both sets of numbers.
See your reverse mortgage numbers
Free call, no commitment. I’ll run HECM and non-FHA numbers side by side for your age, home value and mortgage balance, and tell you honestly whether either one makes sense.
Tax note: I’m a mortgage loan officer, not a CPA or tax attorney. Reverse mortgage proceeds are loan proceeds, but how they fit your taxes, benefits and estate depends on your situation. Talk to a CPA or tax professional before you decide.