Great News for Reverse Mortgage Seekers!
The limits on HECMs have been raised from $679,650 to $726,525; 150% of the loan limits for Fannie Mae and Freddie Mac ($484,350)! According to regulations, reverse mortgage loan limits are not allowed to vary by county. The same limit is used for all mortgages no matter the location of the property.
This is especially good news for borrowers who are over 62 and want to take advantage of the current housing market to get cash out of the equity in their home with an FHA-backed reverse mortgage/HECM. FHA borrowers can potentially benefit from these higher loan limits as well as the downturn in prices. Dan Eichhorn at West Cal Mortgage can help you use this opportunity to its full potential!
The Federal Housing Administration (FHA) issued Mortgage Letter 18-11, relating to forward mortgages, and Mortgage Letter 18-12, relating to Home Equity Conversion Mortgages (HECMs) or Reverse Mortgages on December 14, 2018. These changes will be effective for case numbers assigned on or after January 1, 2019. These letters contain the maximum claim amount for FHA-insured HECMs for 2019.
If you have any questions or would like to get pre-qualified for a home loan, feel free to contact me!