Skip to content

FHA Lending Limit for Reverse Mortgages Extended

December 7, 2012

We 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 https://bethsreversemortgageblog.wordpress.com 651-762-9648

This material may be re-posted provided it is re-posted in its entirety without modifications and includes the contact information, copyright information and the following link: http://wp.me/pxPEm-Ck

Related articles:

Advertisements
3 Comments leave one →
  1. Betty J Hillstrom permalink
    December 9, 2012 2:15 pm

    Wow! I didn’t think the limits were that high.

    Enjoy the snow!!

    Betty J. Hillstrom, Realtor, Senior Advisor

    TRI Realty

    952-693-6209

    http://www.bettyjhillstrom.com

    Licensed in MN

Trackbacks

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

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: