Jumbo Reverse Mortgage Options for High-Value Marin and Sonoma Homes

A jumbo reverse mortgage is a private, or proprietary, reverse mortgage built for homes worth more than the HECM program will count. For 2026, a HECM only counts home value up to $1,249,125. Jumbo reverse loans are not FHA-insured, are not part of the HECM program, and their terms vary by lender.

If your Marin or Sonoma home is worth well above that limit, a HECM leaves part of your equity out of the math. A proprietary loan may count more of it. It is still a loan: you keep paying property taxes, homeowners insurance and HOA dues, keep the home in good repair, and live there, and the balance grows over time.

I’m Ted Erickson, a mortgage broker in Novato with 24 years closing loans. What I bring is the broker’s job: putting HECM and proprietary options side by side and shopping lenders. I’ll tell you straight what’s possible and what isn’t.

• A HECM counts home value only up to the 2026 limit of $1,249,125 (FHA Mortgagee Letter 2025-22).
• Jumbo (proprietary) reverse mortgages are not FHA-insured and are not part of the HECM program.
• Some lenders allow borrowers from age 55; age, limits and terms vary by lender and state.
• The core obligations do not change: taxes, insurance, upkeep, living in the home, and a balance that grows.

What Is a Jumbo Reverse Mortgage?

Most reverse mortgages are HECMs, short for home equity conversion mortgage, the reverse mortgage insured by FHA. A jumbo reverse mortgage is something else: a proprietary reverse mortgage offered by a private lender. The Consumer Financial Protection Bureau (CFPB) says proprietary loans are not insured by the federal government and are typically designed for borrowers with higher home values.

Because the lender writes its own rules, there is no single set of requirements. Each lender sets its own minimum age, maximum loan size, eligible properties and payout choices. Some lenders accept borrowers from age 55, but that varies by lender and state. There is no FHA mortgage insurance, since the loan isn’t FHA-insured.

What doesn’t change is how a reverse mortgage works. You don’t make a monthly payment on the reverse loan as long as you meet its terms. Interest is added to the balance each month, so what you owe grows and your equity shrinks. The loan comes due when the last borrower dies, sells, or moves out.

Where the HECM Limit Leaves High-Value Homes

HUD sets a single nationwide HECM limit, called the maximum claim amount. For case numbers assigned in 2026, it is $1,249,125 (FHA Mortgagee Letter 2025-22). How much a HECM makes available depends on the age of the youngest borrower or eligible non-borrowing spouse, the interest rate, and the lesser of the appraised value, the sales price, or that limit.

So if your home appraises at twice the limit, a HECM still calculates from the limit. The rest of your equity sits outside the formula. That is the gap a jumbo reverse mortgage tries to fill: it uses the lender’s own limits instead of FHA’s.

Regular loans have limits too. For background on how loan limits work here, my page on buying in Marin or Sonoma explains how they work.

HECM vs Jumbo Reverse Mortgage, Side by Side

Here is how a HECM loan compares with a proprietary jumbo reverse mortgage. No rates or fees are shown because they change and vary by lender.

One more difference matters in California. State law defines a reverse mortgage as a nonrecourse loan and applies its consumer protections to reverse mortgages generally, not just HECMs. That includes counseling with a HUD-approved agency, a seven-day wait after counseling before a lender can take your final application or charge fees, and a ban on requiring you to buy an annuity to get the loan.

What a Proprietary Reverse Mortgage Doesn’t Change

A bigger loan limit doesn’t loosen the basics. The Federal Trade Commission (FTC) reminds borrowers that with any reverse mortgage you still must pay taxes and insurance and maintain the property. These reverse mortgage requirements apply to a jumbo loan too:

• Keep paying property taxes, homeowners insurance and any HOA dues.
• Keep the home in good repair.
• Live in the home as your primary residence.
• Meet the other terms of the loan.

Fall behind on any of them and the loan can become due. When it does, you, your estate or your heirs repay it, usually by selling or refinancing the home. A HECM has specific federal rules for heirs, such as the 95 percent rule; with a proprietary loan, ask the lender to show you its terms in writing.

The Downsides to Weigh

I’d rather you hear the trade-offs from me than discover them at closing:

• Cost. The FTC calls a reverse mortgage an expensive way to borrow and notes proprietary loans may have a higher interest rate.
• A growing balance. Interest is added every month, so your equity and what you leave to heirs shrink.
• No federal insurance. A jumbo reverse mortgage has no FHA backing, so the lender’s own terms govern.
• Terms vary. Age minimums, limits, payout choices and property rules differ from lender to lender.
• Starting younger. If a lender allows borrowers from 55, that can mean more years of interest building on the balance.

None of that means it’s the wrong choice. For some homeowners who plan to stay put, a jumbo reverse mortgage may give access to equity a HECM can’t reach. It just has to be weighed honestly against the alternatives.

Alternatives Before You Decide

The FTC suggests looking at less costly alternatives first, such as a home equity loan, a line of credit, a refinance, or downsizing. For a high-value home, a few questions help:

• Can you comfortably make a monthly payment? If so, a HELOC or fixed-rate second may keep more equity in the home.
• Do you want to keep a first mortgage you already have? Some lenders offer a second-lien reverse mortgage that sits behind it; it is not FHA-insured and is not part of the HECM program.
• Are you buying instead of staying? A traditional jumbo loan or a HECM for Purchase may fit better.

How I Shop Reverse Mortgage California Options

When you compare reverse mortgage California options, it helps to see more than one lender’s menu. As a broker, I can look at HECM, jumbo or proprietary, HECM for Purchase and second-lien reverse loans, not just one lender’s product. I compare what each lender that fits will offer for your home and age, then I shop the loan on price and terms so you can see the differences in writing.

To get started, I’ll ask for:

• The age of each owner and any spouse living in the home
• A rough idea of your home’s value
• Your current mortgage statement, if you have one
• Your property tax bill, homeowners insurance declarations and any HOA statement
• What you want the money to do, and how long you plan to stay

You’ll complete counseling with a HUD-approved agency before any application. I’m a loan officer, not a counselor, and that independent conversation is there to protect you.

For every reverse mortgage option I broker in one place, see my page on reverse mortgages in California.

If you’d rather keep a traditional loan with payments, see my jumbo mortgage broker page, learn how an asset depletion loan can qualify you on savings, or read how a mortgage broker compares to a bank.

Jumbo Reverse Mortgage Questions

Talk to Ted

If your Marin or Sonoma home is worth more than the HECM limit and you’re weighing a jumbo reverse mortgage, call or text me. I’ll lay out HECM and proprietary options side by side, shop the lenders that fit, and tell you straight what’s possible and what isn’t.

Call or text Ted at (415) 717-0477, or get your options online.

Sources

• HUD: Mortgagee Letter 2025-22, 2026 HECM maximum claim amount
• HUD: Home Equity Conversion Mortgages for Seniors (counselor search and (800) 569-4287)
• CFPB: Are there different types of reverse mortgages?
• CFPB: Reverse mortgage loans
• CFPB: With a reverse mortgage loan, can my heirs keep or sell my home after I die?
• FTC: Reverse Mortgages
• eCFR: 24 CFR Part 206, Home Equity Conversion Mortgage Insurance
• Federal Register: Strengthening the Home Equity Conversion Mortgage Program (2017)

These materials are not from HUD or FHA and were not approved by HUD or a government agency. Proprietary (jumbo) and second-lien reverse mortgages are not FHA-insured and are not part of the HECM program.

Not all borrowers will qualify. This article is general information, not a commitment to lend.

Ted Erickson

I'm Ted Erickson, a Novato mortgage broker with 24 years closing loans, licensed under NMLS #223442 with Barrett Financial Group, L.L.C. (NMLS #181106) and CalHFA-approved. I've run my own office, built a mortgage company here in Novato after 2008, and spent years doing jumbo loans at major banks. Today I'm a broker, so I can shop the loan instead of forcing it into one bank's box. Most of my work now is the hard stuff: borrowers who got turned down somewhere else, self-employed borrowers whose paperwork doesn't fit the mold, and investors who need a DSCR, fix and flip or bridge loan. That's where Raise the Dead Ted comes from. I'll tell you straight what's possible and what isn't. Outside of work, I've been married 21 years, and I play chess, pickleball and basketball. Call or text me at (415) 717-0477.

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