The National Reverse Mortgage Lenders Association (NRMLA) says that the Department of Housing and Urban Development (HUD) has approved a single national loan limit of $417,000 for federally insured Home Equity Conversion Mortgage (HECM) reverse mortgages.
The new higher lending limit will enable borrowers to obtain a substantially greater benefit from their homes if their home value is higher the previous HUD limit, NRMLA adds. Previously, the HECM program assigned different lending limits by county, ranging from $200,160 in rural areas to $362,790 in the highest home value areas.
Similarly, existing borrowers whose home value is greater than the new HUD limit may be able to increase their benefit by refinancing their reverse mortgage and are encouraged to contact their lenders.
Source: NRMLA