Reverse Mortgage Loan limits are UP

Another new HUD announcement is the Home Equity Conversion Mortgage (HECM) which is an FHA Reverse Mortgage product that will have a new national mortgage limit of $625,500, up from the previous limit of $417,000.

 

This program is designed for homeowners age 62 and older. With a reverse mortgage plan you may be eligible to borrow against the value of your home without selling the home and not make any monthly repayments. There are several programs available to you under this plan. You could select a lump-sum amount, take monthly payments or have a line of credit. The great thing about this program is you do not have to make any repayments as long as you live in the home. The reverse mortgage is repaid however, with interest, when a homeowner sells the home or dies.

 

According to the news release “FHA loan limits are based on the County in which the property is located.” For additional details go to  the HUD website.

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