$679,650 Lending Limit for HECMs after 1-1-2018

While only a small percentage of potential borrowers with high-value property values would qualify, there are a few important caveats you should keep in mind. One note, for more in-depth discussion I would recommend reading Jim Veale’s article in Reverse Mortgage Daily’s LinkedIn group which can be found on the link on this page.

This is only our 2nd change since 2009 but this year’s increase was larger, much larger in fact than the previous increase. Effective January 1st 2017 HECM borrowers with higher valued properties would benefit from a nearly $11,000 increase from $625,500 to $636,150. This year’s increase is much more substantial…$43,500 more. The increase only applies to HECMs with an FHA case number issued on or after January 1st, 2018. Remember, the line in the sand is the date of FHA case number issuance, not the closing date…
FHA Loan Limits Page | Mortgagee Letter 2017-17