Reverse Mortgage Loan Limits To Rise By More Than $365,000
February 8th, 2008
- Bulletin: Debate On FHA Reform Ends In Senate
- Is Modernization A Done Deal?
- Debating The $730,000 Reverse Mortgage
- Will The Reverse Mortgage Ceiling Increase by More Than $270,000?
- Are FHA Reverse Mortgage Loan Limits About To Change?
Seniors with large homes who have been waiting for higher loan limits will be pleased to know that the Congress has effectively doubled the FHA loan limit, meaning that far-larger FHA reverse mortgages (HECMs) are about to become available.
The old FHA loan limit was $362,790 in the lower 48 states. The stimulus package passed by Congress increases the FHA mortgage limit to as much as $729,750 for single-family homes in “high-cost” areas according to the San Jose Mercury News. Since an estimated 90 percent of all reverse mortgages are insured under the FHA HECM program, this means that vastly-larger loans will be available through reverse mortgage financing under the new standard.
All of this assumes, of course, that the President will sign the bill.
The new limit erases any loan limit difference between FHA mortgages and conventional financing.
As is always the case with reverse mortgages, shop around to get the best rates and terms and consult with an attorney who specializes in elder law before signing any paperwork.