Jumbo & Proprietary Reverse Mortgages: Breaking the $1,209,750 HECM Lending Limit

Many homeowners believe that reverse mortgages are capped at $1,209,750, the current FHA lending limit for a Home Equity Conversion Mortgage (HECM). While this is true for the government-insured HECM program, it is a myth that reverse mortgages stop there.

For higher-value homes, there are powerful alternatives: jumbo reverse mortgages and proprietary reverse mortgage programs that allow loan amounts up to $4 million.

What Is the HECM Lending Limit?

The HECM program is the most common type of reverse mortgage because it is federally insured by FHA and offers flexibility with options such as:

• Lump-sum payouts
• Monthly tenure or term payments
• Growing line of credit
• Reverse for Purchase

However, HECM lending limits are set annually by FHA, and for 2025, the maximum claim amount is $1,209,750. Even if your home is worth far more, your loan calculation is capped at this limit.

Jumbo Reverse Mortgages: Going Beyond HECM Limits

For homeowners in high-value markets like Florida, California, and Texas, a proprietary reverse mortgage—also known as a jumbo reverse mortgage—can be the best option.

Key features of jumbo reverse mortgages:

• Loan amounts up to $4 million
• Designed for homes above FHA lending limits
• Available for homeowners aged 62+
• Flexible disbursement options (similar to HECM, but with higher thresholds)

These programs are ideal for retirees with significant equity who want access to more than the HECM program allows.

Why the “Reverse Mortgage Cap” Myth Persists

Most educational material and advertising highlight HECM loans because they are federally regulated and widely available. This has led to the false belief that reverse mortgage loan amounts stop at $1,209,750.

In reality, jumbo and proprietary reverse mortgages expand options for homeowners with higher-value properties—providing more retirement planning flexibility.

Atlantic Avenue Mortgage: Your Reverse Mortgage Experts

As the #1 reverse mortgage broker in the country, Atlantic Avenue Mortgage specializes in both HECM reverse mortgages and proprietary jumbo reverse mortgages.

Here’s why homeowners choose us:

• Straightforward education – we explain all options clearly
• Tailored solutions – matching the right loan program to your needs
• Client-first approach – if a reverse mortgage isn’t in your best interest, we’ll tell you

We serve thousands of homeowners every year and have built a reputation for trust, transparency, and exceptional service.

Key Takeaway

Reverse mortgages are not capped at $1,209,750. With a jumbo reverse mortgage, homeowners can access loan amounts up to $4 million, making it possible to unlock more home equity for retirement planning.

 Ready to see if a jumbo or proprietary reverse mortgage is right for you? Contact Atlantic Avenue Mortgage today to schedule a consultation and discover how you can make the most of your home equity.