Jumbo Reverse Mortgages are gone (For now)
When IndyMac bank went into chaos, one side effect was that their Reverse Mortgage division, Financial Freedom, pulled their Jumbo Reverse Mortgage out of circulation. The Financial Freedom Cash Advantage was the only jumbo loan program in the nation.
By Jumbo loans, I mean, a loan program that is designed to preform for home values of 600,000 and up. The HECM is a fine product but would not provide a comparable percentage of equity. It was just too low.
The good news is that there is now a ray of hope. The US Senate just passed a huge FHA housing bill that will allow for an across-the-board raising of lending limits. This means that higher value homes will now be able to take out more equity with a Home Equity Conversion Mortgage, or a Reverse Mortgage to us common folks. It should help bridge the gap until someone invents a new jumbo program for us. (I hope its really soon!)
