HECM vs Jumbo – Which Reverse Mortgage Product Is Best for Your Client?

Not all reverse mortgages are created equal. As a broker, understanding the difference between HECM (Home Equity Conversion Mortgage) and Jumbo/Proprietary Reverse Mortgages is key to recommending the right product for each client.

What Is a HECM Reverse Mortgage?

• Backed by FHA and insured by HUD

• Designed for homes up to FHA lending limits

• Offers protections like mandatory counseling and non-recourse guarantees

What Is a Jumbo Reverse Mortgage?

• For higher-valued properties above FHA limits

• No HUD insurance, but more flexible loan amounts

• Often used for borrowers with significant home equity

When to Choose Each Product

• HECM: Clients want FHA protections, standard loan limits, or line-of-credit features.

• Jumbo: Clients have high-value homes and need access to larger loan amounts.

Empower your borrowers with the right choice: HECM or Jumbo?

Want a product comparison cheat sheet for brokers? Request your free guide here and help clients make informed decisions.