I am trying to determine when one of the Jumbo products that I mentioned last week (Bank of America's Platinum and First Reverse's Jumbo) make sense.
It looks like the proprty value has to be close to or over two million dollars to see any real benefit over the ususal FHA insured Home Equity Conversion Mortgage (HECM)
Both Lenders told me that their products don't work for a co-op and are basically for very high priced homes. LTV's are miniscule at between 16-26, depending on age. So take the middle of that (21) for a 75 year old borrower who could get about $330,000 with an adjustable rate HECM and as much as $420,000 with a fixed-rate HECM and it does not make sense to take a Jumbo loan unless the property is worth over $2,000,000.
I was hoping that these products would fill a need for properties that don't meet HUD guidelines (e.g. certain condos, etc.) but so far, I can't find any circumstance that would warrant these product unless the property value is extremely high.
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