FHA Increases the HECM Lending Limit for 2020

Great News!

The Federal Housing Administration (FHA) just announced that the national lending limit for the HECM Reverse Mortgage Program will increase from $726,525 to $765,600 as of January 1, 2020.

Why is this great news and what does it mean if you’re considering a reverse mortgage?

In essence, it means that borrowers with higher home values will now be able to access more equity from their homes. Bottom line, the higher the lending limit the more available cash.

Here’s a comparison based on a 70-year-old homeowner with a home value of $770,000 or above.

  • 2019 – Total available proceeds = $414,119.25
  • 2020 – Total available proceeds = $436,392.00 – That’s a $22,272.75 increase! *

Plus, because the HECM requires borrowers to pay off existing mortgages before obtaining the loan, some borrowers with high mortgage balances may not have been able to secure enough proceeds to qualify under the 2019 lending limit. Now, with a higher lending limit, there may just be enough to make it work.

Could it be the right time for you to get a reverse mortgage? To learn more about HECM lending limits, and how to qualify for this 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.




* The amounts shown above are for illustration purposes only.  The actual amount available may vary. This is not an offer to make you a loan, does not qualify you for a loan, and is not an official loan disclosure. Loan disclosures, including a Good Faith Estimate of closing costs, are provided upon receipt of a completed reverse mortgage application. Additional terms and conditions apply.

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Please enter a number from 62 to 130.
To qualify, must be 62 or older
Please enter a number greater than or equal to 1.
Proceeds based on appraised home value.
Please enter a number greater than or equal to 0.
(if applicable)

Co-op properties, rental homes, and rental apartments do not typically qualify. Contact a Longbridge specialist for more information.

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