San Diego · Reverse Mortgages

HECM vs. Jumbo Reverse Mortgage

By Amanda LaRussa · Mortgage Broker, NMLS #2166834 · Licensed in CA, AZ, TX

San Diego has some of the highest home values in the country. If your equity exceeds the FHA HECM lending limit, understanding the difference between a standard HECM and a jumbo reverse mortgage can mean significantly more flexibility in retirement.

Two paths to a reverse mortgage

Most reverse mortgages in the U.S. are FHA-insured HECMs — subject to a federal lending limit. For San Diego homeowners with properties valued well above that limit, a jumbo (proprietary) reverse mortgage may unlock significantly more equity.

Both are non-recourse loans with no required monthly principal and interest payments. The right choice depends on your home value, age, and goals.

HECM (FHA-insured)

  • Insured by the FHA — strong consumer protections and required HUD counseling
  • Home value capped at the FHA lending limit ($1,249,125 in 2026) for calculation
  • Fixed and adjustable rate options; multiple payout structures
  • Non-recourse — you never owe more than the home's value at repayment
  • Widely available through FHA-approved lenders nationwide

Jumbo / proprietary reverse mortgage

  • Not FHA-insured — offered by private lenders for high-value properties
  • Uses actual appraised value above the HECM limit — important in San Diego
  • May offer higher proceeds for equity-rich homeowners in premium neighborhoods
  • Generally non-recourse, but terms vary by lender and product
  • HUD counseling may still be required or recommended depending on the product

Side-by-side comparison

  • Lending limit: HECM capped at FHA limit; jumbo uses full appraised value
  • Minimum age: typically 62+ for both
  • Insurance: HECM includes FHA mortgage insurance; jumbo products vary
  • Proceeds: jumbo often higher for homes valued above ~$1.25M
  • Costs: both have closing costs; jumbo origination may differ
  • Flexibility: HECM has standardized FHA rules; jumbo terms vary by lender

Which is right for your San Diego home?

If your home is valued near or below the FHA lending limit, a HECM is often the straightforward choice. If you live in a high-value coastal or inland San Diego neighborhood where your equity significantly exceeds the limit, a jumbo reverse mortgage deserves a close look.

I shop both options across multiple lenders so you can compare real numbers — not marketing claims.

Is a jumbo reverse mortgage safe?
Reputable proprietary reverse mortgages from established lenders include non-recourse protections similar to HECMs. Because they are not FHA-insured, it is important to review terms carefully — which is exactly what we do together before you decide.
Can I switch from a HECM to a jumbo reverse later?
Refinancing from one reverse mortgage product to another may be possible if home values rise or your needs change. We evaluate whether the benefit justifies the closing costs.

Want to talk through your situation?

Schedule a conversation with Amanda LaRussa, NMLS #2166834 — no pressure, just clear answers.

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