LoanGetter.com - Proprietary Reverse Mortgage

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What Is a Proprietary Reverse Mortgage?

A proprietary reverse mortgage is a privately offered reverse mortgage that is not insured by the Federal Housing Administration. Because these programs are developed by private lenders, they may offer options that differ from an FHA-insured HECM.

They can be especially useful for homeowners with higher-value properties or borrowers whose goals or circumstances may be better served by a proprietary program.

Why Consider a Proprietary Reverse Mortgage?

Access More Home Equity
For higher-value homes, certain proprietary programs may provide access to more equity than would otherwise be available through an FHA-insured reverse mortgage.

Different Age Requirements
Some proprietary programs may be available to borrowers 55 and older. Minimum age requirements vary by program and state.

Flexible Program Options
Depending on the lender and program, there may be different choices for how proceeds are received, property eligibility, loan amounts, and other features.

Higher-Value Properties
Proprietary programs can be particularly valuable when the home's value exceeds the amount that can be fully recognized under FHA HECM lending limits.

Proprietary vs. HECM

Neither option is automatically better. The goal is to determine which program provides the best combination of available proceeds, costs, features, and long-term flexibility for your particular situation.

Ways You May Receive Your Proceeds

Proprietary reverse mortgage programs can offer different ways to access your available home equity. The options available depend on the specific lender and loan program.

Lump-Sum Proceeds
Receive available proceeds at closing, subject to the terms and limitations of the selected program.

Line of Credit
Some proprietary programs may offer a line-of-credit option, allowing you to access available funds as needed rather than taking all proceeds at once.

Other Distribution Options
Certain programs may offer additional ways to receive proceeds. We can compare the available choices based on your financial goals.

How Could You Use the Funds?

Reverse mortgage proceeds can generally provide flexibility for a variety of financial needs, such as:

Paying off an existing mortgage
Creating additional retirement cash flow
Establishing funds for future needs
Home improvements or accessibility modifications
Healthcare or other significant expenses
Helping preserve other retirement assets
Providing greater financial flexibility

Every Proprietary Program Is Different

Proprietary reverse mortgages do not all have the same features, age requirements, property guidelines, loan amounts, or distribution options.

What Properties May Qualify?

One advantage of proprietary reverse mortgage programs is that they may provide additional property options beyond those available with an FHA-insured HECM. Eligibility varies significantly by lender and program.

Depending on the program, eligible properties may include:

Single-Family Homes
Higher-Value and Luxury Homes
Certain Condominiums
Eligible 2–4 Unit Properties
Certain Planned Unit Developments (PUDs)
Some Manufactured Homes, when permitted by the specific program
Other unique property situations that meet the lender's guidelines

Condominium Owners

This can be particularly important for condominium owners. Some proprietary programs may have different condominium eligibility requirements than FHA HECM financing, potentially providing another option when a condominium does not qualify for HECM financing.

Approval is not automatic—the condominium and property must still meet the requirements of the particular proprietary program.

Property Value Can Make a Difference

For homeowners with substantial equity in a higher-value property, a proprietary reverse mortgage may allow more of the home's value to be considered when determining available proceeds.

That makes it worthwhile to compare HECM and proprietary options rather than choosing a program based solely on the home's value.

We'll Check the Property First

If you're unsure whether your property qualifies, I can review the property type, estimated value, location, existing mortgage balance, and your goals to determine which reverse mortgage programs may be worth exploring.

Is a Proprietary Reverse Mortgage Right for You?

A proprietary reverse mortgage may be worth exploring if you:

Own a higher-value home
Have substantial home equity
Want to compare options beyond an FHA-insured HECM
Are interested in accessing more of your available home equity
Need a property option that may not fit HECM guidelines
Are interested in a reverse mortgage but may not meet the HECM age requirement
Want to compare different ways of accessing your available proceeds

HECM or Proprietary? Let's Compare Both.

You don't have to determine which reverse mortgage is best before contacting me.

I can review your age, property value, current mortgage balance, property type, financial goals, and available programs and provide a side-by-side comparison.

The objective isn't simply to find the largest loan amount. It's to find the reverse mortgage structure that makes the most sense for your home, your finances, and your plans for the future.

Request a Personalized Reverse Mortgage Review

Let's look at the numbers and determine what options may be available.

REQUEST A REVERSE MORTGAGE REVIEW

Proprietary reverse mortgage programs are offered by private lenders and are not FHA-insured. Program availability, minimum age, property requirements, loan amounts, costs, features, and distribution options vary. Borrowers remain responsible for property taxes, homeowners insurance, applicable property charges, maintenance of the home, and meeting the terms of the loan.

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