HECM vs Jumbo Reverse Mortgage in Hawaiʻi (2025 Side-By-Side Comparison)
Compare HECM vs Jumbo reverse mortgage in Hawaiʻi. Learn limits, qualifications, condo rules, and which option fits high-value homes in 2025.
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HECM vs Jumbo Reverse Mortgage in Hawaiʻi (2025 Side-By-Side Comparison)
This guide explains the differences between HECM and Jumbo reverse mortgages, how each works in Hawaiʻi, and which option may fit your home and financial goals best.
What Is a HECM Reverse Mortgage?
A HECM (Home Equity Conversion Mortgage):
- Is the official, FHA-insured reverse mortgage program
- Backed by federal protections
- Available to homeowners 62+
- Has national lending limits
- Offers flexible payout options (lump sum, monthly, line of credit)
- Works well for typical Hawaiʻi homes under the lending cap
- Includes safeguards for seniors and heirs
2025 HECM Lending Limit:
$1,149,825 (national limit, applies in Hawaiʻi)
This means HECM programs are ideal for homes valued at or below that threshold — though higher-value homes may still use HECM if the payout meets the homeowner’s goals.
What Is a Jumbo Reverse Mortgage?
A Jumbo Reverse Mortgage (also called a proprietary reverse mortgage):
- Designed for high-value Hawaiʻi homes
- Offers loan amounts well above the federal HECM limit
- Often available for condos not FHA-approved
- May allow more flexible property types
- Sometimes allows younger borrowers (55+), depending on the lender
- Has different (sometimes lower) fees
- Not federally insured
- Used extensively in Honolulu, Maui, and Kailua/Kāhala high-value markets
Jumbo programs can provide significantly more funds for homeowners in areas where prices commonly exceed HECM limits.
HECM vs Jumbo Reverse Mortgage in Hawaiʻi: Key Differences
Below is the clearest side-by-side comparison tailored specifically for Hawaiʻi seniors.
1. Loan Amounts
HECM
- Limited by federal cap ($1.149M)
- Great for typical Oʻahu, Maui, and Big Island homes
- Lower-value condos & townhomes qualify more easily
Jumbo
- Designed for homes $1.5M–$4M+
- Perfect for:
- Kāhala
- Hawaiʻi Kai
- Kailua
- Kakaʻako
- Maui oceanfront
- Lanikai
- Higher maximum payouts
Winner for high-value Hawaiʻi homes: Jumbo
2. Condo Eligibility
HECM
- Condo must be:
- FHA-approved, or
- Eligible via Single-Unit Approval
This is often a barrier for many Honolulu and Waikīkī condos.
Jumbo
- Many lenders accept non-FHA-approved condos
- More flexibility for:
- Waikīkī high-rise units
- Kakaʻako towers
- Older Honolulu buildings
Winner for condo owners: Jumbo
3. Fees & Costs
HECM
- FHA mortgage insurance premiums apply
- Closing costs can be higher due to federal requirements
- Extra consumer protections included
Jumbo
- No FHA insurance
- Fees sometimes lower, sometimes higher depending on program
- Pricing varies more than HECM
Winner: Depends on property value & lender — but Jumbo often has lower upfront fees.
4. Consumer Protections
HECM
- Strict federal protections for:
- Non-borrowing spouses
- Heirs
- Counseling requirement
- Non-recourse rules
Jumbo
- Fewer government protections
- Still includes basic non-recourse rules (you never owe more than home value)
- Spousal protections depend on lender
Winner for safety: HECM
5. Minimum Age
HECM
- Minimum borrower age: 62
Jumbo
- Some programs allow borrowers as young as 55
- Varies by lender
Winner for younger seniors: Jumbo
6. Line of Credit Growth
HECM
- Line of credit grows over time
- One of the biggest advantages of HECM
- Great for long-term aging in place planning
Jumbo
- Some offer lines of credit, but:
- Do not grow like HECM
- Less flexibility
Winner: HECM
Which Is Better for Hawaiʻi Seniors?
Here’s the quick breakdown:
Choose HECM if:
- Your home value is below $1.5M
- You want the most protections
- You want a growing line of credit
- You prefer federally regulated programs
- You have an FHA-approved condo
Choose Jumbo if:
- Your home value is above $1.5M
- You live in a high-value area like:
- Kāhala, Kailua, Hawaiʻi Kai
- Kakaʻako, Waikīkī
- Maui resort areas
- Your condo is not FHA-approved
- You want a larger payout than HECM can offer
How Much Could You Get from a HECM or Jumbo Reverse Mortgage?
Your estimate depends on:
- Your age
- Your home value
- Your remaining mortgage
- Your property type (condo, single-family, leasehold)
- Interest rates
- Jumbo program terms
You can check your estimated amount in seconds:
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CONTACT
AI Reverse Mortgage Hawaii
Clear Reverse Mortgage Guidance for Hawaii Seniors
Percy Ihara
Reverse Mortgage Specialist
NML#: 582944
Phone: +1(808)234-3117
Email: percy@c2hawaii.com
Address: Pauahi Tower, 1003 Bishop St Suite 2700-42, Honolulu, HI 96813
Serving ALL Hawaiian Islands: Kauai, Oahu, Molokai, Lanai, Maui, and Big Island