A proprietary reverse mortgage is a loan that allows senior homeowners to access the equity in their homes through a private lender. They are not as tightly-regulated as home equity conversion mortgages (HECM) and are not federally-insured.
Proprietary reverse mortgages make up only a small segment of the market for reverse mortgages, and most of their customers are the owners of homes valued above the limit set by the Federal Housing Administration (FHA). For 2020, that limit is set at $765,000.
Understanding the Proprietary Reverse Mortgage
Proprietary reverse mortgages are sometimes called jumbo reverse mortgages because they are sought mostly by people who want access to more money than the federally-insured reverse mortgage can supply, and whose homes are valued at more than the limit set by the government.