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What is the max LTV on a jumbo reverse mortgage for $900,000?

by joehochman265 from , California. May 7th 2016 Reply


The max reverse loan is not as simple as just the ltv. The age of the youngest homeowner and the borrowers ability to continue making payments on their property taxes and living expenses.

May 7th 2016
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It really depends on the lender and the type of loan. What were you looking for?

May 7th 2016
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Larry Gray (lgray_312_247)
#566 ranked lender in California - 1,127 contributions

Hopefully you got your answer. It is not simple to determine since the age of the individual seeking a reverse mortgage is important in determining what the maximum ltv can be. There is a calculation to determine how much of a "heloc in reverse" they could provide you to take money from; then they will allow for a loan to value based on the expectation not too many borrowers will outlive the equity remaining in the property once they depart this world. A reverse mortgage is in "reverse"...you make payments within the reverse mortgage that accrue over time, and if fortunate to be very long lived, you just might outlive your reverse mortgage! Once you have done that, it simply means there will very likely not be equity in the home for any of your heirs to inherit.

May 9th 2016
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,933 contributions

The loan limit for FHA's HECM is $625,500 and the LTV is based on the age of the youngest applicant (must be 62 or older to qualify), but caps out at 75% maximum. Any other type of Reverse mortgage is considered a "portfolio" loan product. These loans do not have a standardized set of "Conforming" guidelines.. so the rules will vary based on the lender who offers it.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

May 10th 2016
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