SoCal Mortgage Blog

A new Jumbo Reverse Mortgage program was recently announced, targeting homes valued in the $500,000 to $6,000,000 range. This is been an under served niche for the past few years. While the FHA Reverse Mortgage (HECM) is a great program for homes valued to $625,000, that is not enough to help many of the coastal areas of southern California.

Orange County Homes from $500,000 to $6,000,000

You don’t have to search very long to find neighborhoods in Orange County where homes sell for $1,000,000. Beach communities such as Newport Beach and Laguna Beach have homes that are easily in the $6,000,000 range. Now there is a way for seniors in these homes to tap their equity, even if they don’t have the income typically required to qualify for a $1,000,000 plus loan amount.

Jumbo Reverse Mortgage Guidelines for Orange County Seniors

Two appraisals are required for this product. Also, contrary to the FHA Reverse Mortgage Program, the Jumbo Reverse mortgage requires a minimum FICO score of 700. Also, the borrower cannot have had a bankruptcy within the last 5 years. The minimum age for a Jumbo Reverse Mortgage borrower is 62. While condo’s are not eligible for this program, there is no issue for single family homes, PUD’s (Planned Unit Developments), and Townhomes (row home).

The home must be the borrowers primary residence. It cannot be a Second Home or investment property. Also, the homeowner must live in the property for a minimum of 183 days of the calendar year.