HECM vs Jumbo Reverse Mortgage, Side by Side
The HECM is the government-insured reverse mortgage: age 62 and up, FHA-insured, counting home value up to $1,249,125 in 2026. The jumbo (proprietary) reverse mortgage is its private-lender sibling: it counts your home's full value with loans up to $4 million, charges no FHA insurance premiums, and can start at age 55 in California. Rule of thumb: home under the limit, HECM usually wins; home clearly above it, jumbo usually wins; near the limit, compare both in writing.
See what your home could pay you. About a minute, and the number appears before we ask who you are.
The One Picture That Explains It
How much of your home's value counts
The HECM stops counting at $1,249,125. The jumbo counts it all.
Bars drawn to scale. What you can actually borrow is a percentage of the counted value, based on your age and current rates.
Which One Fits You?
Choose at a Glance
Choose the HECM when...
- Your home is worth up to ~$1.25 million
- You want the growing credit line or lifetime monthly checks
- You want the federal non-recourse guarantee
- You are 62 or older
Choose the Jumbo when...
- Your home is worth clearly more than the FHA limit
- You are 55 to 61
- Your condo building is not FHA-approved
- You want to skip FHA insurance premiums
Every Difference, One Table
| FHA HECM | Jumbo / Proprietary | |
|---|---|---|
| Minimum age | 62 | As low as 55 in California |
| Federally insured | Yes (FHA) | No |
| FHA insurance premiums | 2% upfront + 0.5%/yr | None |
| Home value counted (2026) | Up to $1,249,125 | Full value; loans up to $4 million |
| Payout options | Lump sum, monthly checks, growing credit line | Usually fixed-rate lump sum; some credit lines |
| Interest rates | Typically lower | Typically somewhat higher |
| Condos | FHA-approved buildings | No FHA approval needed |
| Counseling | Required (HUD) | Required by most programs; CA protections apply |
| Non-recourse protection | Federal guarantee | By contract; confirm in writing |
| California 7-day cooling-off | Yes | Yes |
The Bottom Line
- Both pay you from your equity with no monthly mortgage payments, and with both you keep the title.
- The HECM's edge is federal insurance and flexible payouts.
- The jumbo's edge is counting every dollar of a high-value home.
- Near the limit? Compare both. It costs nothing, and we put both numbers in writing.
