What is a jumbo reverse mortgage?
What is a jumbo reverse mortgage?
What is a jumbo reverse mortgage?
What is a Jumbo Reverse Mortgage?
and who needs one
What is a jumbo reverse mortgage? Simply, a jumbo reverse mortgage is a reverse mortgage product designed for high-value homes – typically homes valued above $636,000, or loans for non-FHA approved condos.
What are the requirements for jumbo reverse mortgages?
- Borrowers must own the home for 12 months.
- Borrowers can own up to 4 other financed properties.
- The house cannot be listed for sale in the previous 6 months.
- Properties can be valued up to $6 million.
- The loan can be fixed rate only.
- Any proceeds not drawn at closing cannot be taken later.
- Residual income must be 1.75 times the primary residence and revolving/installment debt.
- There are stricter credit guidelines, requiring essentially 23 months of perfect credit.
- Closing costs may be paid by the seller, unlike current FHA rules.
Are you interested in a jumbo reverse mortgage? Call Steve today! (719) 434-3919 He is known in the front range as The Mortgage Doctor, an honest and effective mortgage lender who will find the best mortgage option for you and walk you through the process. Check out his testimonials by clicking here.
Jumbo Reverse Mortgages for Condo Owners
First. many condo owners would like to get a reverse mortgage, but their condo project is not FHA-approved. With a jumbo reverse, that’s OK. The condo must, however, be warrantable by FNMA (Federal National Mortgage Association.
FNMA warrantability is only granted if:
- The project (including all common areas) is fully completed and the common areas are insured.
- The homeowner association is controlled by only unit owners and not the developer or builder.
- 50% or more of the units are owner-occupied.
- No one person owns more than 10 percent of the units.
