— REFINANCE
Jumbo Reverse Mortgage
Refinance Program
A proprietary jumbo reverse mortgage designed to help eligible homeowners with higher-value properties access equity beyond FHA lending limits – available in Hawaii and other markets where Pacific Home Loans is licensed.
— ABOUT Reverse Mortgages
Jumbo Reverse Mortgage
Refinance in Hawaii
A jumbo reverse mortgage is a proprietary (non-FHA) loan product designed for eligible homeowners whose property values exceed the FHA HECM lending limit.
For many Hawaii homeowners — particularly those with high-value properties across Maui, Oahu, Kauai, and the Big Island — a standard HECM reverse mortgage may not provide access to the full equity available in their home. A jumbo reverse mortgage is designed to address this gap, offering higher loan limits through select private lenders.
As a mortgage broker, Pacific Home Loans works with multiple lenders that offer proprietary jumbo reverse mortgage products, allowing us to match eligible borrowers with the program that best fits their property value, equity position, and financial goals.
Multi-State Availability
Pacific Home Loans offers jumbo reverse mortgage solutions in multiple states, including Hawaii, California, Nevada, and other markets where we are licensed. Program availability, loan limits, and eligibility requirements vary by lender and state.
— REVERSE MORTGAGE
Jumbo Reverse vs
HECM Mortgage
How a Jumbo Reverse Mortgage Differs From a Standard HECM:
| Feature | HECM (Standard Reverse) | Jumbo Reverse (Proprietary) |
|---|---|---|
| Insured by | FHA | Private lender |
| Loan limits | FHA lending limit applies | Higher loan amounts available |
| MIP required | Yes, upfront and annual | No FHA MIP |
| Best suited for | Properties at or below FHA limits | Higher-value properties |
| HUD counseling | Required | Required |
— REVERSE MORTGAGES
Reverse Mortgage
Life Expectancy Set-Aside
As part of the FHA reverse mortgage process, borrowers complete a financial assessment. If the financial review identifies limited monthly income or a history of late property tax or homeowners insurance payments, FHA guidelines may require a Life Expectancy Set-Aside (LESA).
What Is a LESA?
A Life Expectancy Set-Aside (LESA) is a protective feature built into the FHA-insured reverse mortgage program. Instead of declining the loan due to financial concerns, a portion of your available reverse mortgage proceeds may be reserved to pay certain property-related expenses on your behalf.
What Does a LESA Cover?
Funds may be set aside to pay property taxes, homeowners insurance, and flood insurance (if required). These payments are made directly when due to help keep the loan in good standing.
How a LESA May Help
- Allows certain borrowers to qualify even with past credit challenges
- Helps ensure property taxes and insurance remain current
- Reduces stress by automating required property payments
- Supports long-term loan stability
Financial Impact of a LESA
Because funds are reserved from your available reverse mortgage proceeds, you may receive less cash at closing or your available line of credit may be reduced. A LESA is not a penalty – it is a safeguard designed to protect both the homeowner and the loan.
— REVERSE MORTGAGES
Jumbo Reverse Mortgage
Program Details
Who a Jumbo Reverse Mortgage May Be Appropriate For
This product may be appropriate for:
- Homeowners age 62 or older (or 55+ depending on the lender program — confirm current guidelines)
- Homeowners with properties valued above the FHA HECM lending limit
- Borrowers seeking access to greater equity than available under a standard HECM
- Borrowers who prefer a non-FHA proprietary reverse mortgage structure
Key Features
- No required monthly principal and interest payments
- Borrower retains title to the property
- Proceeds may be available as a lump sum or line of credit, subject to lender program terms
- No FHA mortgage insurance premium
- Loan amounts available beyond FHA HECM limits, subject to lender underwriting and program guidelines
All features are subject to individual lender program guidelines, underwriting approval, and state availability.
Borrower Obligations
As with all reverse mortgage products, borrowers must:
- Continue to pay property taxes
- Maintain homeowners insurance
- Maintain the property in good condition
- Occupy the property as their primary residence
Failure to meet these obligations may cause the loan to become due and payable.
When the Loan Becomes Due
A jumbo reverse mortgage becomes due when the borrower permanently leaves the property, sells the home, or passes away. Heirs may repay the outstanding loan balance to retain the property, or sell the property to satisfy the loan. These are non-recourse loans — repayment will not exceed the home’s appraised value at the time of settlement, subject to lender program terms.
Is a Jumbo Reverse Mortgage Right for You?
A jumbo reverse mortgage is a significant long-term financial decision. We strongly encourage borrowers to consult:
- A HUD-approved reverse mortgage counselor
- A financial advisor familiar with retirement income planning
- A tax professional
- An estate attorney
A jumbo reverse mortgage may be one component of a broader retirement income strategy. Our team can help evaluate whether a proprietary jumbo reverse mortgage or a standard HECM is more appropriate for your specific property, equity position, and financial goals.
Compare Reverse Mortgage Options
For homeowners with property values at or below the FHA HECM lending limit:
