Reverse Mortgage Loan Limits to Increase in 2017
The Federal Housing Administration (FHA) announced Reverse Mortgage Loan Limits will increase in 2017. This is significant news, since lending limits have remained stagnant for several years.
The maximum claim amount will now rise to $636,150, up from $625,500, for Home Equity Conversion Mortgages. This amount is 150 percent of the national conforming limit of $424,100.
Also increasing in some areas are loan limits for forward mortgages. In high-cost areas, the FHA national loan limit ceiling will increase to $636,150 from $625,500, and FHA will increase its floor to $275,665 from $271,050.
The Maximum Claim Amount is then offset by the reserve set aside for future interest and mortgage insurance amounts accrued to arrive at a Principal Limit which would be the maximum amount a homeowner can borrow. The reserve amount is based on Age and interest rates and loan amount.
The loan limit changes and the maximum claim amount change for reverse mortgages to take effect after January 1, 2017 and stay in effect through December 31, 2017.
This change was made as of the result of rising home prices, with 2,948 counties across the nation benefiting from these changes. Lots of good news for Reverse Mortgage recently.
This increase is a positive for a program that provides seniors more choices and flexibility as they consider a reverse mortgage that can help senior homeowners in many ways. The most important would be to be able to live in their homes as long as they want or provide strategic options for taking social security and withdrawing investment funds.
To learn more about tips and strategies when applying for a reverse mortgage, I’m available to answer all of your questions. Let’s talk about your goals and perhaps ways that you can take advantage of these loan limit increases, please give me a call or send me an email: email@example.com. I’d be happy to help!
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