The Federal Housing Administration (FHA) recently announced that the national lending limit for the HECM Reverse Mortgage Program has increased from $822,375 to $970,800 – effective January 1, 2022.
Why is this great news for those considering a reverse mortgage?
Essentially, it means that borrowers with higher home values will now be able to access additional equity from their homes. Bottom line: the higher the lending limit, the more available cash.
Here’s a comparison based on a 75-year-old homeowner with a home value of $975,000 or above:
• 2021 – Total available proceeds = $500,826
• 2022 – Total available proceeds = $591,217 – That’s a $90,391 increase!*
Plus, since a Home Equity Conversion Mortgage requires borrowers to pay off existing mortgages before obtaining the new HECM loan, some borrowers with high mortgage balances may not have been able to secure enough proceeds to qualify previously under the 2021 lending limit. Now, with a higher lending limit, there may be enough to make it work.
Could now be the right time for you to get a reverse mortgage? To learn more about HECM lending limits and how to qualify for the loan program, give us a call today. We would be happy to discuss all your options. We’re here to help. To learn more call (855) 523-4326.