A Jumbo Reverse Mortgage was designed by financial institutions to allow people with expensive properties to access more of the equity from their homes. Loans that were known as Proprietary Reverse Mortgages or Jumbo Reverse Mortgages were made available by financial institutions to allow homeowners of very expensive properties to get more money from their properties’ equity than was given by government insured HECM Reverse Mortgages. These reverse mortgages were for properties over $650,000. Why are Jumbo Reverse Mortgages No Longer Available? The world wide recession and banking failures has produced what is being described as a “credit crunch”. Basically, a credit crunch means that there is less money available for loans. Jumbo Reverse Mortgages are seen as extremely risky because of the financial situation. Banks are no longer willing to loan monies in excess of $400,000 in reverse mortgages since the future of the property and the banking institution is not clear. Banks could easily lose a great deal of money if they loaned $1,000,000 on a reverse mortgage, waited 20 years and the property was not marketable in the current economy at $800,000. What factors are involved in making Jumbo Mortgages Risky?

Read more here – What Is A Jumbo Reverse Mortgage?