Maximize Your Home Equity. Expand Your Retirement Possibilities.
Fairway offers a wide range of proprietary (jumbo) reverse mortgage solutions designed to meet the unique needs of homeowners as young as age 55 (in select states). Whether you’re looking to maximize loan proceeds, preserve home equity for heirs, keep an existing low-interest first mortgage, purchase a higher-value home, or establish a flexible line of credit, Fairway has a solution that may fit your goals.
What is a Jumbo Reverse Mortgage?
It is a special type of home loan that allows older homeowners to access a portion of the equity and defer repayment to a later date. These reverse mortgage options maintain many of the consumer protections of the HECM program and may better serve owners of high value homes or may solve other problems HECMs currently do not.
As a borrower, you have the option to repay as much or as little of the loan balance each month as you would like, or you can make no monthly mortgages payments. Of course, you must still maintain the home and pay homeowners insurance and property taxes, just like a traditional mortgage.
Proprietary (Jumbo) Reverse Mortgages*
Available Through Fairway
Fairway Signature Peak
Best For: Borrowers looking to maximize loan proceeds when refinancing or purchasing a home.
- Loan amounts up to $4 million
- Fixed-rate loan with a single lump-sum disbursement
- $300,000 minimum property value
- Expanded eligibility for condominiums
- Minimum borrower age of 55 in select states
Fairway Signature Preserve
Best For: Borrowers who want to preserve a greater portion of their home equity for heirs or future financial needs.
- Access home equity while reserving 10%–40% of your home’s value
- Fixed-rate loan with a single lump-sum disbursement
- Loan amounts up to $4 million
- $300,000 minimum property value
- Minimum borrower age of 55 in select states
Fairway Signature Reverse LOC
Best For: Borrowers seeking a flexible line of credit with greater initial access to funds than a traditional HECM
- Variable-rate line of credit
- Unused line of credit grows by 1.5% annually for the first seven years
- Loan amounts up to $4 million*
- Expanded eligibility for condominiums
- Minimum borrower age of 55 in select states
Fairway Signature Select
Best For: Rate-sensitive borrowers seeking a proprietary fixed-rate reverse mortgage.
- Loan amounts up to $4 million
- Fixed-rate loan with a single lump-sum disbursement
- $300,000 minimum property value
- Expanded eligibility for condominiums
- Minimum borrower age of 55 in select states
Fairway Signature Advantage
Best For: Fee-sensitive borrowers who need a large lump sum payout with a fixed-rate.
- Loan amounts up to $4 million
- Fixed-rate loan with a single lump-sum disbursement
- $300,000 minimum property value
- Expanded eligibility for condominiums
- Minimum borrower age of 55 in select states
HomeSafe Standard
Best For: Homeowners with higher-value or lower-value homes seeking an alternative to Fairway Signature fixed-rate products.
- Loan amounts up to $4 million
- Fixed-rate loan with a single lump-sum disbursement
- $200,000 minimum property value
- Expanded eligibility for condominiums
- Minimum borrower age of 55 in select states
HomeSafe Second
Best For: Borrowers who want to access home equity while keeping their existing low-interest first mortgage.
- Second-lien reverse mortgage behind an existing first mortgage or HELOC
- Fixed-rate loan with a single lump-sum disbursement
- Loan amounts up to $1 million
- Expanded eligibility for condominiums
- Minimum borrower age of 55 in select states
HomeSafe Select Intro
Best For: First-time reverse mortgage borrowers seeking an alternative to a traditional HECM line of credit.
- Variable-rate line of credit
- Unused line of credit grows by 1.5% annually for the first seven years
- Loan amounts up to $4 million
- Initial draw ranging from 25%–90% of the principal limit
- Minimum borrower age of 55 in select states
Choice Fixed Max
Best For: Borrowers seeking maximum loan proceeds for a condominium or lower-value property.
- Loan amounts up to $4 million
- No minimum property value
- Fixed-rate loan with a single lump-sum disbursement
- Highest loan proceeds among Choice Fixed products
- Minimum borrower age of 55 in select states
Choice Flex
Best For: Borrowers looking to refinance a condominium or lower value property while benefiting from a flexible line of credit.
- Variable-rate line of credit with no preset draw period end
- Loan amounts up to $4 million
- No minimum property value
- Minimum initial draw of 25% of the principal limit
- Minimum borrower age of 55 in select states
Key advantages of a Jumbo Reverse Mortgage
(over a Traditional HECM Reverse Mortgage)
Access more equity
Your age, the lending limits, the interest rate, and the appraised value of your home all factor into how much money you would be able to receive with a reverse mortgage. With a traditional HECM reverse mortgage, the home value limit that can be borrowed against is currently capped at $1,249,125—whereas that limit on a jumbo reverse mortgage can extend into the millions of dollars. For example, let’s say Harold owns a home that is worth $1.5 million. He may be able to borrow more funds with a jumbo reverse mortgage than a HECM reverse mortgage because the home value amount he is borrowing against is its full appraised value, not the $1,249,125 maximum he would face with a HECM reverse mortgage.
Additionally, HECMs have initial disbursement limits that often prevent borrowers from accessing more than 60% of their full loan limit (principal limit) during the first year. The proprietary products don’t have this restriction.
NOTE: Story is for illustration purposes only. The persons depicted herein are fictional and any resemblance to actual persons is a coincidence.
Avoid paying a mortgage insurance premium (MIP)
Jumbo reverse mortgages often have no mortgage insurance premium (MIP), which can reduce the overall loan costs. With a HECM reverse mortgage, the FHA requires that the borrower pays both an initial and ongoing mortgage insurance premium (MIP), which helps make it a non-recourse loan. A non-recourse loan means if the balance on the loan exceeds the home value at the time the home is sold, neither you nor your heirs will be responsible for paying the deficit. This feature on a HECM reverse mortgage loan is guaranteed by the FHA.
While jumbo reverse mortgages are also non-recourse loans, no jumbo reverse mortgages loans are insured by the FHA. While rates may be higher with jumbo reverse mortgages, the upfront charges can be a lot less.
Less restrictive qualifications for condos
Unlike a HECM reverse mortgage, with a jumbo reverse mortgage, condos do not necessarily have to be FHA-approved.
May qualify at a younger age
HECMs require all borrowers to be 62 or older. Proprietary products may offer financing as young as 55.
Note: Proprietary reverse mortgage products are available only in select states. No proprietary reverse mortgage product is currently offered nationwide.
*The state of MA has a maximum loan amount/lending limit of $2,000,000. Qualification requirements apply.
HomeSafe® reverse mortgage products are proprietary reverse mortgages developed by Finance of America Reverse LLC. Choice® reverse mortgage products are proprietary reverse mortgages developed by Smartfi Home Loans, Inc. Fairway Signature® reverse mortgage products are proprietary reverse mortgages developed by Longbridge Financial, LLC. These proprietary reverse mortgage products are offered by Fairway and are separate from and are not affiliated with the FHA-insured Home Equity Conversion Mortgage (HECM) program.
Frequently Asked Questions
How do you qualify for a jumbo reverse mortgage?
Jumbo reverse mortgages are designed for older-adult homeowners with high home values. To find out if you’d qualify for a jumbo reverse mortgage, contact a Fairway retirement mortgage specialist.
What is the interest rate on a jumbo reverse mortgage?
Jumbo reverse mortgage interest rates can vary by lender and whether you select a fixed or variable product. The interest rates on jumbo reverse mortgages tend to be higher than other reverse mortgages, but they do not have Mortgage Insurance Premiums. To find out what the current jumbo reverse mortgage interest rates are, please reach out to a Fairway retirement mortgage specialist.
What is the largest reverse mortgage available?
Jumbo reverse mortgages allow you to borrow up to $4 million. You can receive the funds as a single-disbursement lump sum payment or access the funds as needed through a line of credit.
Who does jumbo reverse mortgages?
There are many lenders nationwide who offer jumbo reverse mortgages. At Fairway, we offer a wide range of mortgage products, including Home Equity Conversion Mortgages and jumbo reverse mortgages, to meet our customers’ needs.
Let’s start a conversation.
Our experienced team of Reverse Mortgage Planners will help you to understand the Jumbo Reverse Mortgage product, so you can make an informed decision about whether it is the right financial solution for you.
*Source: https://www.cbsnews.com/news/best-reverse-mortgage-companies-2023/