Reverse mortgages have maximum limits on the amount of money that applicant can borrow or withdraw. Home Equity Conversion Mortgages (HECMs), the most common type of reverse mortgage, conform to loan limits set by the Federal Housing Administration (FHA). However, these limits have been temporarily altered to alleviate the housing market strain caused by the mortgage crisis.
Loan Limit: $625,000
A direct effect of stimulus efforts in 2009, the current reverse mortgage loan limit has remained at $625,000. As a result, homeowners in areas with higher home values have access to greater amount of funds and have been given more incentive to secure a reverse mortgage.
Reverse Mortgage Interest Rates
Interest rates play a crucial factor when taking out a reverse mortgage loan. Read about how interest rates on loan limits can make a difference in your decision making.
About The Author:
Gretchen Wegrich is an editor at Lender411. She specializes in mortgage basics, personal finance and green living. She graduated with a bachelor's degree in writing from University of California, San Diego and previously worked at the Santa Cruz Sentinel. Contact her at gretchen@lender411com.
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