The Proprietary Jumbo Loan
In response to the substantial increase in home property values in certain parts of the United States and HECM loan to value limitations, some reverse lenders have come out with their own versions of the HECM government backed program. These programs have the same safety provisions of the HECM program. The loan is still non-recourse; the title stays in the homeowner’s name, the children still inherit, so on and so forth.
What is significantly different is that we can use full property values up to $10 million to make a loan of up to $6 million dollars. There are no payments required.
Many clients are sitting in $1 to $10 million dollar homes and condominiums and living on only a pittance of social security. The capital gains taxes to sell the house are onerous. The children cannot help them to make ends meet. They cannot qualify for a traditional loan. The traditional HECM loan doesn’t adequately utilize the property value to make sense. That is where a proprietary Jumbo Reverse can be a safe and secure potential solution.
Here are some examples of how we have worked with legal and financial professionals to assist their clients with this product.
A 91-year-old woman in Venice, CA. lives in a home worth $1.75 million. She got a loan for $1.1 million.
An 88-year-old retired designer got $2.2 million on his $4.5 million home in Beverly Hills.
A couple in their early late 60s in Saratoga, CA got $950,000 on their $2 million dollar home.
An 89-year-old retired actor and his 73-year-old wife in Malibu, CA got $1.79 million on their $4.2 million home.
A couple in their mid 60s have a home in Los Angeles valued at $1.5 million and needed money to pay off bills and build an ADU that will create an additional $30,000 a year of rental income so that they can both retire.
We use six different companies for HECM loans and three different companies for these proprietary Jumbo Reverse Loans. Are you, a client or a loved one sitting on millions of dollars of untapped home equity while living on only social security and a small pension? Are you making ends meet with credit cards each month? Or spending down your IRA or 401k plan?
Give us a call and lets collaboratively design a proprietary Jumbo Reverse loan that can be a solution or simply fill out your request on our Custom Proposal page.
For eligibility considerations, see our In-Depth Information.