Can I get a reverse mortgage if my home is worth more than the FHA limit?
The short answer
Yes. An FHA-insured HECM only counts your home's value up to $1,249,125 in 2026, so owners of higher-value homes often get more from a jumbo (proprietary) reverse mortgage, with loans up to about $4 million from some lenders in select states. Jumbo reverse mortgages aren't FHA-insured HECMs and have their own terms. The Mortgage Advisory compares both for your home.
What's the HECM limit?
For 2026, FHA counts your home's value only up to $1,249,125 (for case numbers assigned in 2026). If your home is worth $2 million, a HECM treats it as if it were worth $1,249,125, so you may leave a lot of equity on the table.
What is a jumbo (proprietary) reverse mortgage?
It's a reverse mortgage from a private lender instead of an FHA-insured HECM. It works the same basic way: no required monthly mortgage payment, you keep title, and it's repaid when the last borrower sells, moves out, or passes away.
| HECM (FHA-insured) | Jumbo (proprietary) reverse | |
|---|---|---|
| Who backs it | FHA insurance | The private lender |
| Minimum age | 62 | 62, or as young as 55 in some states |
| Home value | Counted up to $1,249,125 (2026) | Loans up to about $4 million with some lenders |
| FHA insurance premiums | Yes: 2% upfront, 0.5% yearly | None |
| Best for | Most homeowners | High-value homes and some condos that aren't FHA-approved |
Is a jumbo reverse always better for an expensive home?
Not always. Jumbo loans skip FHA's insurance premiums, but they have their own rates, costs, and protections, and some don't offer a growing line of credit like a HECM does. Sometimes a HECM still wins, even on a high-value home. The only way to know is to price both.
What still applies?
The same basics as any reverse mortgage: live in the home as your primary residence, pay property taxes, insurance, and HOA dues, and maintain the home. Programs, ages, and availability vary by state and lender.
Example scenario (illustrative)
A 70-year-old couple in Laguna Niguel own a $2.4 million home free and clear. A HECM would base their loan on $1,249,125 of value. A jumbo reverse mortgage bases it on the full value and offers them substantially more. We price both, walk through the costs line by line, and they choose the jumbo for the larger line of credit.
Our take
In Southern California, a lot of long-time homeowners are over the FHA limit without realizing it. If that's you, don't assume a reverse mortgage won't do much. Ask which options are available in your state, and I'll put a HECM and a jumbo side by side so you can see the difference in real dollars.
Sources
Ace Ausar, Mortgage Banker · NMLS #1143018
The Mortgage Advisory, Inc. · NMLS #1549739
Reviewed by Ace Ausar, NMLS #1143018 · Updated
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