Jumbo Reverse Mortgage - Is It Still Available?

A few years ago many senior homeowners were taking out what were called a jumbo reverse mortgage. What are they? Are they still available? Here are some answers to these questions and many others.

What Are Jumbo Reverse Mortgages?

A jumbo reverse mortgage allowed a homeowner to gain access to even more amounts of their home's equity then they could from an HECM reverse mortgage.

Are Jumbos Still Available?

In short, no they aren't. They current housing collapse and credit crisis has eliminated the jumbo reverse mortgage. Currently, the only type of reverse mortgage available is the government backed HECM.

Why Are Jumbo Reverse Mortgages No Longer Available?

There are several reasons why you won't find these loans today, and they really make sense when you stop to think about it.

-Unstable and falling home values. Because a jumbo reverse mortgage is based on greater amounts of equity in a home, and since the home is actually the collateral, the risks are simply too great for lenders.

-These jumbo loans are not backed by the government; instead they are private banking instruments. Again, the risk was just too great.

What's The Future?

Reverse mortgages are still available through HUD and the government. The Home Equity conversion Mortgage is easily accessible.

In time, the jumbo reverse mortgage may find its way back on the market once this current housing crisis is solved and home prices become more stable. Of course, banks will also need to begin lending again as well. When that happens is really anyone's guess right now.