Why Are Jumbo Reverse Mortgages So Popular in the San Francisco Bay Area?

There was a time when jumbo reverse mortgages received a bad rap amongst consumers, but over the last decade, jumbo reverse mortgages have evolved to become one of the more popular financing vehicles for borrowers throughout the San Francisco Bay area.

Historically, jumbo reverse mortgages were almost exclusively for luxury homes located in high-value areas. Over the years new jumbo reverse mortgage programs have evolved, moving away from niche markets, and broadening in scope to offer value to a larger variety of borrowers.

In fact, the industry is now pushing towards classifying these programs in a less stigmatized fashion, referring to them as private reverse mortgages. So, what exactly is a private reverse mortgage?

If you live in the San Francisco Bay area, here is how homeowners just like you are using jumbo reverse mortgages to their advantage.

What is a Jumbo Reverse Mortgage?

Much like forward mortgages, traditional reverse mortgages typically must conform to designated loan limits set for by the Federal Housing Administration (FHA) to be eligible for a federal guarantee.

On the other hand, jumbo reverse mortgages are loans not restricted to these conforming limits, although they aren’t eligible to be backed by the FHA. But because these loans don’t follow FHA’s guidelines, they can be a more flexible option, especially in high-value areas.

A Brief History: Jumbo Reverse Mortgage Programs

Jumbo reverse mortgage programs rose from the aftermath of the 2008 financial crisis, when most traditional reverse mortgage programs dried up, except for the FHA’s Home Equity Conversion Mortgage program ¹ .

Many providers found that the new lending limit caps were having a significant impact on borrowers with high-value properties. After no new programs had been established in the last four or five years, new options started to become available and gained traction ¹ .

As the market started to warm up to reverse mortgage loans again, the FHA began tightening its guidance for new loans, making private programs even more attractive.

Now new jumbo reverse mortgage solutions have come to market which are priced to attract investors who buy them, consequently adding liquidity to the market. This also benefits lenders and borrowers because they have solutions that can meet their needs.

Why Choose a Jumbo Reverse Mortgage?

One of the reasons why jumbo reverse mortgages are so popular in the San Francisco Bay area is because borrowers are not restricted to tighter loan restrictions like most traditional reverse mortgages.

Some programs allow homeowners to borrow up to $6 million, depending on a variety of factors ² . One of the biggest sticking points is your property’s value.

Since the San Francisco Bay area is home to a multitude of high-value properties, it’s obvious why jumbo reverse mortgages have found a home here.

Another benefit to using a jumbo reverse mortgage is that there is typically a shorter waiting period to receive the loan proceeds as one lump sum.

With a traditional solution, you may be restricted to how the loan is structured and how you can access the funds. In some cases, you may be subject to a predetermined distribution schedule ² .

Additionally, unlike FHA-backed reverse mortgage loans, jumbo reverse mortgages don’t carry an upfront mortgage insurance premium.

Although many providers do charge an underwriting and processing fee, often as a percentage of the appraised value of your home, in some cases they can be less than if you went with a traditional solution ² .

Lastly, while jumbo reverse mortgages don’t offer the same protections as a federally backed loan, providers do often provide consumers some protections that are similar to traditional products. For example, some jumbo providers offer non-recourse loans ² .

Not all jumbo reverse mortgages carry the same protections so make sure to ask your lender upfront what protections are being provided. In most cases they should be stated plainly in the contract.

Sources

1Branson, M. G. (2020, November 23). Council Post: The Evolution Of Jumbo Reverse Mortgages. Retrieved April 26, 2021, from https://www.forbes.com/sites/forbesrealestatecouncil/2020/03/04/the-evolution-of-jumbo-reverse-mortgages/?sh=24dba4a0627d

2 Rounds, H. (2018, June 05). Understanding Jumbo Reverse Mortgages. Retrieved April 26, 2021, from https://www.lendingtree.com/home/reverse-mortgage/understanding-jumbo-reverse-mortgages/

The post Why Are Jumbo Reverse Mortgages So Popular in the San Francisco Bay Area? appeared first on Fresh Home Loan.

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Garrick Werdmuller

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garrick@freshhomeloan.com

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From Garage to ADU: How a 203(k) Loan Helped One Family Maximize Their Space

By Garrick Werdmuller • June 18, 2025

🛠️ From Garage to ADU: How a 203(k) Loan Helped One Family Maximize Their Space 🛠️ Buy It and Fix It With One Loan: The FHA 203(k) Limited A few years ago, I helped a couple purchase their home with just 5% down. It was a great fit for them at the time — solid neighborhood, the space they needed, and a bonus: a detached garage with potential. Fast forward to today — their teenage son was getting older and needed his own space. Naturally, they started exploring how to turn that detached garage into an Accessory Dwelling Unit (ADU) so he could move in and have a bit more independence. They gave me a call, hoping to tap into their home’s equity with a line of credit. But after running the numbers, it became clear that a traditional HELOC wouldn’t provide enough funds to cover the full conversion. That’s when I brought up a lesser-known option: the FHA 203(k) Limited loan . The FHA 203(k) Limited program snapshot outlines a renovation loan product allowing borrowers to finance both the purchase and rehabilitation of a property with a single mortgage , specifically for non-structural repairs or improvements. Here's a summarized overview for reference or communication: 🏡 What Is It? The FHA 203(k) Limited is designed for: Homebuyers purchasing a fixer-upper Homeowners refinancing and remodeling Primary residences only You can finance both the home and non-structural renovations—like kitchens, bathrooms, floors, HVAC systems, roofs, appliances, and more—with a single mortgage . 💡 Why Use a 203(k) Limited? ✅ Finance up to $75,000 in repairs and upgrades ✅ Only 3.5% down payment ✅ One loan, one closing ✅ No 203(k) Consultant required ✅ Ideal for non-structural repairs and cosmetic improvements ✅ Perfect for first-time buyers and FHA borrowers 🛑 What You Can’t Do With It This is for light remodeling only. You can’t use this loan for: Structural changes or additions Foundation work Landscaping (except for erosion prevention) Pools, hot tubs, or other luxury features (Bummer ! I know! 😒) 🧾 Borrower Submission Checklist Here’s what we’ll need to get started on your FHA 203(k) Limited loan: ✅ Basic Docs Loan Application (apply online or schedule an appointment) Government-issued ID Most recent 30 days of paystubs Last 2 years of W-2s or tax returns (for self-employed borrowers) Most recent 2 months of bank statements ✅ Property & Repair Info Signed Purchase Contract (if purchasing) Contractor’s Written Proposal with: Itemized list of repairs Cost breakdown (labor + materials) Statement that work is non-structural W-9 form from contractor Contractor license & insurance (if required by local jurisdiction) ✅ Appraisal & Renovation Docs Appraisal supporting As-Is and After-Improved Value Permit list (if applicable) Final Work Plan (signed off before close) 💬 Final Thoughts The FHA 203(k) Limited can turn a fixer into your dream home—or give your current space the refresh it deserves. With just one loan , you get flexibility , affordability , and peace of mind . Have a property in mind? Let's talk! 👉 Schedule a Free Consultation https://freshhomeloan.com/schedule-a-meeting/ 🏡 #FHA203k #203KLoan #RenovationLoan #FixerUpper #HomeRemodel #MortgageSolutions #FirstTimeHomeBuyer #HomeLoanHelp #RealEstateTips #MortgageBrokerLife #CaliforniaHomes #BayAreaRealEstate #CentralValleyHomes #DreamHomeGoals

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Guía definitiva de préstamos ITIN – Tu paso hacia la compra de casa

By Smith Chung • June 18, 2025

¿Qué es un préstamo ITIN? Un préstamo ITIN es una hipoteca diseñada para personas que declaran impuestos usando un Número de Identificación de Contribuyente Individual (ITIN) en lugar de un número de Seguro Social (SSN). El ITIN lo otorga el IRS a quienes no son elegibles para un SSN pero aún así deben declarar impuestos en EE. UU. 💬 En resumen: ¿No tienes SSN? ¡No hay problema! Si has sido financieramente responsable y cuentas con documentación básica, ¡podrías calificar! 💪 👨‍👩‍👧‍👦 ¿Quién se beneficia de un préstamo ITIN? Los préstamos ITIN están diseñados para quienes persiguen el sueño americano — incluso sin documentación tradicional. Podrías beneficiarte si: 🌎 Eres inmigrante viviendo en EE. UU. sin green card ni SSN 🧾 Declaras impuestos usando un ITIN 💼 Tienes ingresos estables (W-2, por cuenta propia o incluso en efectivo con comprobantes) 💳 Pagas renta y servicios a tiempo y puedes demostrarlo 💥 Hemos ayudado a familias que pensaban que comprar casa era imposible — ¡y cerraron en solo 30–45 días! 🛠️ ¿Cómo funcionan los préstamos ITIN? Los préstamos ITIN generalmente son financiados por prestamistas no tradicionales (non-QM) o bancos especializados que operan fuera de los lineamientos de Fannie Mae/Freddie Mac. Aquí te explicamos cómo funcionan: 💰 Tipos de préstamo: Tasa fija o ajustable Compra, refinanciamiento o retiro de efectivo Propiedad principal, segunda vivienda y algunas propiedades de inversión 💵 Pago inicial: Generalmente del 10 % al 20 % A menudo se permiten fondos de regalo 📊 Crédito: En algunos casos no se requiere puntaje FICO Se puede usar historial de renta, servicios públicos o incluso crédito internacional 📉 Tasas y plazos: Ligeramente más altas que las convencionales Disponibles con tasa fija a 30 años o ARM de 5/7/10 años 📄 Documentación que necesitarás Para obtener una precalificación, debes demostrar estabilidad, ingresos y solvencia. La mayoría de los prestamistas solicitarán: 🆔 ITIN válido y vigente 📑 2 años de declaraciones de impuestos 💼 Comprobante de ingresos (W-2s, 1099s, o P&L si trabajas por cuenta propia) 🏦 2–3 meses de estados de cuenta bancarios 🌐 Identificación válida (pasaporte, matrícula consular, etc.) 🏘️ Historial de renta (comprobante bancario o carta del arrendador) 💡 Consejo extra: ¡Algunos prestamistas incluso aceptan ingresos o activos del extranjero! 🚫 Conceptos erróneos comunes sobre los préstamos ITIN ❌ Mito 1 : Los préstamos ITIN son ilegales. ✅ Falso. Son 100 % legales y cumplen con las regulaciones federales. ❌ Mito 2 : No calificas si eres trabajador independiente o te pagan en efectivo. ✅ No es cierto. Con declaraciones de impuestos o registros bancarios, definitivamente puedes calificar. ❌ Mito 3 : Te van a estafar o cobrar de más. ✅ ¡No con nosotros! Buscamos la mejor opción para tu préstamo y te explicamos todo con claridad. 🌱 ¿Por qué los préstamos ITIN son importantes para nuestras comunidades? 🏘️ Ser dueño de una casa crea riqueza generacional, estabiliza vecindarios y eleva a las familias. Para muchos inmigrantes, los préstamos ITIN son un puente hacia un futuro mejor — y nos enorgullece ser parte de ese proceso. ❤️ 🧑‍💼 Cómo pueden ayudar los agentes de bienes raíces Agentes inmobiliarios — ¡no dejen pasar esta oportunidad! Los compradores con ITIN son leales, motivados y, en muchos casos, están bien establecidos en sus comunidades. Aquí algunas formas de atenderlos mejor: 🤝 Haz equipo con prestamistas que conozcan las reglas de ITIN • 📆 Establece tiempos y expectativas realistas • 💗 Lidera con empatía y orientación 📣 ¿Quieres destacar? Dirige tu marketing a clientes con ITIN — ¡nosotros te respaldamos! 💼 El enfoque de Fresh Home Loan hacia los préstamos ITIN En Fresh Home Loan Inc., trabajamos con prestamistas confiables para ofrecer soluciones hipotecarias ITIN rápidas, justas y transparentes. Ya sea tu primera casa o una inversión, estamos contigo en cada paso. ✅ 🚀 ¿Listo para comenzar? ¿Conoces a alguien que pueda beneficiarse de un préstamo ITIN? Hagamos realidad el sueño de ser dueño de una casa — de la forma correcta, con apoyo y claridad desde el primer día. 🏠✨ “Llama hoy mismo para empezar tu precalificación — en Fresh Home Loan hablamos tu idioma y creemos en tu futuro.”