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 the government sets.

In essence, they work the same way most HECM-insured reverse mortgages do. The homeowner gets a line of credit up to the assessed value of the home. They can take it as a lump sum, set up a monthly annuity for life, or choose a series of monthly payments for a number of years. It’s the homeowner’s choice. The amount withdrawn is repaid only when the homeowner or the homeowner’s heirs sell the home.