Empowering Your Retirement with a Proprietary Mortgage for Seniors

At Freestone Mortgage, we believe in empowering homeowners age 55+ with financial solutions that enhance their retirement lifestyle. Our proprietary mortgages for seniors are designed to provide flexibility, financial empowerment, and peace of mind, tailored to meet the diverse needs of our clients.

What is a Proprietary Mortgage for Seniors?

A proprietary mortgages for seniors is a type of home equity loan that enables property owners aged 55 years and older (in many states) to convert their home’s equity into cash or a line of credit without any required monthly mortgage payments. Proprietary mortgages for seniors are unique loan programs offered by private lenders, distinct from the government backed FHA-insured Home Equity Conversion Mortgage (HECM). Proprietary mortgages for seniors are not bound by county lending limits or standard FHA requirements, offering a tailored approach to accessing your home equity without required monthly mortgage payments. If you have ever wished you could skip your monthly mortgage payment without risking huge fees, a ding on your credit report, or foreclosure, you should consider a mortgage made exclusively for seniors; the monthly mortgage payments are always optional and never required.

In comparison to traditional mortgages, all retirement mortgages offer flexibility to homeowners by creating an income stream directly from their home equity that they can use to finance their needs.

Proprietary mortgages for seniors are options designed for homeowners with high-value homes or for situations in which a traditional HECM is not ideal. A proprietary mortgages for seniors fills a void created by the lending limits of the Federal Housing Administration’s (FHA) Home Equity Conversion Mortgage (HECM) loan program. Since the HECM program has been designed to suit people with homes valued at lower amounts, it isn’t optimal for individuals with higher valued homes or those averse to mortgage insurance. With a proprietary mortgage for seniors, individuals with homes surpassing the HECM limit can still leverage their home equity for cash or a line of credit with growth potential that outweighs many traditional retirement funding tools.

These loans have various terms and limitations, so there are several different options to consider. A knowledgeable broker who can provide data-driven insights into your decision is key to deciding which proprietary mortgage for seniors would be optimal for you. Some lenders and brokers refer to proprietary mortgages for seniors as jumbo retirement mortgages because some loan programs can be used on homes valued up to 4 million.

As you approach retirement, financial security becomes a top priority. For many older homeowners, their home is their most valuable asset. Proprietary mortgages for seniors offer a unique opportunity to access your equity as cash or a line of credit, providing flexibility and financial freedom in your golden years with optional monthly mortgage payments that are never required.

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Why Choose a Proprietary Mortgage for Seniors?

There are several benefits of obtaining a proprietary mortgage for seniors, including:

  • Higher loan limits: If you have a higher valued home, a proprietary mortgage for seniors enables you to access more cash than you would through an HECM. You may receive higher credit limits, giving you access to a more substantial capital amount, depending on your home’s value and potential current mortgage balance.
  • No monthly mortgage payments: A proprietary mortgage for seniors does not demand monthly mortgage payments, freeing up cash flow for other desires like home renovations, wiggle room in your budget, increasing medical expenses, or even traveling.
  • Flexibility: Unlike a traditional mortgage, a proprietary mortgages for seniors has relaxed guidelines for underwriting. Thus, they have more flexibility and lenient requirements, including minimal income and credit score requirements. This flexibility enables people worried about getting approved for a home loan to bring out some life-changing money that they can use to finance essential needs.
  • Lower Upfront Costs: With no mortgage insurance premiums, these loans often come with lower closing costs, making them a cost-effective option for many seniors.
  • Flexibility and Control: Funds can be used for anything, from home renovations to supplementing retirement income, and are typically available in one lump sum or a line of credit.
  • Qualifications: A proprietary mortgage for seniors will sometimes work for homeowners who may not qualify for a traditional Home Equity Conversion Mortgage (HECM). Unlike HECMs, which are insured by the federal government, proprietary mortgages for seniors are offered by private lenders. Because if this, FHA requirements don’t apply. If you have been turned down for a HECM or didn’t like the terms the HECM offered, a proprietary mortgage for seniors should be considered instead.

Proprietary vs. HECM: Which is Right for You?

Proprietary mortgages for seniors cater to a variety of needs. Whether you’re looking for more cash than a HECM can provide, have a home valued above county lending limits, or prefer to avoid FHA insurance, a proprietary mortgage for seniors might be the solution. However, it’s essential to consult with a mortgage broker who has access to all the various programs so they can offer you comparable options and review them based on your goals and make recommendations supported by data-driven insights.

Proprietary Mortgage for Seniors

Structured and insured by private lenders, proprietary mortgages for seniors are ideal for higher-value homes and borrowers looking for more flexibility.

  • Low upfront costs
  • Lower age requirement for most programs
  • Easier income qualification
  • Loan amounts up to $4 million
  • No mortgage insurance premium
  • Non-Recourse protections for when the loan is called due
  • Loan amount determined by the individual lender, but also based on:
    • Age of the youngest borrower
    • Appraised home value
    • Current interest rates
  • Proceeds can be used for any purpose
  • Loan proceeds are non-taxable
  • Funds are typically available as a lump sum or line of credit (state-dependent)
  • No penalties for prepayment
  • Can be used for select non-FHA-approved condo projects
  • There is a second lien retirement mortgage option available

HECM (Home Equity Conversion Mortgage)

Insured by the Federal Housing Administration (FHA), HECMs are the most widely used retirement mortgage option in the U.S. and offer a range of payout structures.

  • Lower loan limit of $1,209,750 in 2025
  • Backed by the FHA for added protection
  • Loan amount based on:
    • Age of the youngest borrower
    • Appraised home value
    • Current interest rates
  • Funds can be used for anything
  • Disbursement options:
    • Monthly payments (tenure or term)
    • Lump sum
    • Line of credit
    • Modified combinations
  • Loan proceeds are non-taxable
  • No penalties for prepayment

 

 

How Are The Proprietary Mortgages For Seniors Different?

There are a few different proprietary mortgages for seniors available, but they all have different loan limits, age restrictions, credit requirements, and protections, and they are not all available in all states. These are the proprietary mortgages for seniors that Freestone Mortgage has available:

Please click on the links above to learn about the different proprietary mortgages for seniors we have available.

How Much Can I Borrow with a Proprietary Mortgage For Seniors?

The amount you can borrow with a proprietary mortgage for seniors differs significantly depending on your home equity, your age, and current interest rates. However, there is a maximum limit on the amount you can borrow that differs depending on the proprietary program you are considering. There are a few different proprietary loan options to review and consider, even one that will take second lien position behind a traditional mortgage called the HomeSafe 2nd that you can read more about here and another that works for second homes exclusively you can read more about here.

Is It Possible to Refinance My Existing HECM Into a Proprietary Mortgage For Seniors?

Possibly! To refinance your existing HECM into a proprietary mortgage for seniors, it depends on the individual lender’s policies and programs. If your home has appreciated in value, refinancing may be optimal in certain cases.  It would behoove you to make sure you’re working with an experienced broker with access to every proprietary option to ensure you are getting all the information you need to make the optimal decision.

Refinancing your existing HECM to a proprietary mortgage for seniors may significantly increase your borrowing power, giving you more access to cash when you need it.

What is a Jumbo Retirement Mortgage?

A proprietary mortgage for seniors and a jumbo retirement mortgage are different words that mean the same thing-both refer to private, non-FHA-insured mortgage products designed for seniors with higher-value homes. A proprietary retirement mortgage is often called “jumbo” because it exceeds the federal lending limits set by HUD for standard HECM loans. While the term “proprietary” emphasizes that the loan is offered by a private lender, “jumbo” highlights the larger loan amounts available, often up to several million dollars. Regardless of the name, these products provide more flexibility and greater access to equity for older homeowners with high-value properties.

  • Pros: No required monthly mortgage payments, flexible use of funds, home title remains in your name.
  • Cons: Can potentially impact needs-based programs like Medicaid and Food Stamps. The loan balance does grow over time if optional payments are not made.

Unlock Your Retirement Dreams with Proprietary Mortgages for Seniors

Homeowners aged 55+ in the Pacific Northwest who value financial flexibility and a more secure retirement should consider a proprietary mortgage for seniors. At Freestone Mortgage, we understand that your home is more than just a place to live – it’s a valuable asset that can help you achieve your retirement goals. That’s why we offer all proprietary mortgages for seniors tailored to your unique needs.

Are Proprietary Mortgages for Seniors Right for You?

Proprietary mortgages for seniors might be the right choice if:

  • You’re seeking a larger loan amount: Your home’s value exceeds the HECM lending limit.
  • You’re looking for more flexibility: You desire features or loan structures not available with HECMs.
  • You’re under 62: Some proprietary mortgages for seniors have lower age requirements and can work for people as young as 55.
  • When are proprietary mortgages for seniors better than a HECM?
  • When the home appraises for more than the HECM lending limit or a client desires a loan with lower closing costs.
  • Is there mortgage insurance on proprietary mortgages for seniors?
  • No, these loans are not federally insured, so there are no monthly mortgage insurance premiums.
  • Do proprietary mortgages for seniors have higher closing costs than a HECM?
  • Generally, no. Without mortgage insurance, the closing costs stay lower.

Freestone’s Proprietary Mortgages for Seniors Advantage

At Freestone, we take a holistic approach to retirement planning. We don’t just focus on the mortgage; we consider your entire financial picture and lifestyle aspirations. Here’s what sets our proprietary mortgages for seniors apart:

  • Innovative Solutions: Benefit from our cutting-edge technology and proprietary tools that provide clear, actionable insights into your options.
  • Personalized Guidance: Our local team takes the time to understand your unique circumstances and tailor a proprietary mortgages for seniors solution that aligns with your goals.
  • Holistic Perspective: We consider your complete financial situation to ensure the proprietary mortgages for seniors complements your overall retirement plan.

Why Choose Freestone?

  • Local Roots, Neighborly Approach: We’re deeply connected to the Pacific Northwest and treat our clients like neighbors.
  • Transparent and Ethical: We’re committed to providing honest, reliable advice and transparent solutions.
  • Community-Driven: We actively engage in the communities we love, prioritizing relationships over transactions.
  • Excellence: We are dedicated to delivering the highest level of service, accuracy, and professionalism.

Take Control of Your Retirement

Don’t let your home equity sit idle. Discover how proprietary mortgages for seniors from Freestone can empower you to live the retirement you’ve always dreamed of. Contact us today for a no-obligation consultation!

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