Reverse Mortgage Loan Limits to Increase in 2018 The Federal Housing Administration (FHA) announced Reverse Mortgage Loan Limits will increase in 2018. This is significant news since lending limits have remained stagnant for several years. The maximum claim amount will now rise to $726,525, up from $636,150 for Home Equity Conversion Mortgages and jumbo options are now available.
The Maximum Claim Amount is either the appraised value or the loan limit and the amount a borrower can receive is reduced by the reserve set aside for future interest and mortgage insurance amounts accrued to arrive at the Principal Limit.
The reserve needed is based on the age of the youngest borrower, interest rates and loan amount. This change was made as a result of rising home prices, with almost 3,000 counties across the nation benefiting from these changes.
Lots of good news for Reverse Mortgages 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: firstname.lastname@example.org. I’d be happy to help!