FHA Lending Limit for Reverse Mortgages Extended

FHA Lending Limit of Reverse Mortgage $625,500We got word today that FHA is extending the Lending Limit of $625,500 for reverse mortgages through December 31, 2013.  This is good news for those who have a a higher home value!

To determine the loan amount on the FHA HECM (Home Equity Conversion Mortgage), the lending limit or home value, whichever is lower, is used.  For example, the value of one’s home may be $900,000 but FHA will use the Lending Limit of $625,500 to calculate the loan amount for a FHA HECM.  For reverse mortgages the age of the borrower and the Expected Interest Rate of the program chosen are also used to determine the Principal Limit or Maximum Loan Amount.

For more information see Mortgagee Letter 12-26.

©2012 Beth Paterson, Beth’s Reverse Mortgage Blog, 651-762-9648

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3 thoughts on “FHA Lending Limit for Reverse Mortgages Extended

  1. Pingback: Let Me Educate You On Adjustable Rate Reverse Mortgages « Beth's Reverse Mortgage Blog

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