Download a FREE BONUS report about the HECM. See the end of this article for more details.
Reverse Mortgage Glossary
The loan limit is the maximum loan amount FHA will insure for a HECM reverse mortgage. As of this writing (April 2016), the loan limit is $625,500, which means that the principal limit (the total pool of cash available) is calculated based on the lesser of your appraised value or $625,500.
For example, if the appraised value is $150,000, the principal limit will be calculated based on a maximum claim amount of $150,000. If your appraised value is $800,000, then the principal limit will be calculated based on a maximum claim amount equal to the loan limit of $625,500.
Was This Informative? Please Share!
FREE Report: How a HECM really works (it's not what you think!)
An industry insider spills the beans on how a HECM reverse mortgage really works. Get the inside scoop! Enter your email address below and click 'Download'.
We respect your privacy and won't spam you. You can unsubscribe at any time.