Seniors with large homes who have been waiting for higher loan limits will be pleased to know that the Congress has effectively doubled the FHA loan limit, meaning that far-larger FHA reverse mortgages (HECMs) are now available.
The old FHA loan limit was $362,790 in the lower 48 states. The stimulus package passed by Congress and signed by President Obama increases the FHA mortgage limit to as much as $729,750 for single-family homes in “high-cost” areas. Since an estimated 90 percent of all reverse mortgages are insured under the FHA HECM program, this means that vastly-larger loans will be available through reverse mortgage financing under the new standard.
This is great news for many of my Reverse Mortgage clients that have homes of high value that had decided to wait on the program because they could not access as much of their equity as they wanted.
The old FHA loan limit was $362,790 in the lower 48 states. The stimulus package passed by Congress and signed by President Obama increases the FHA mortgage limit to as much as $729,750 for single-family homes in “high-cost” areas. Since an estimated 90 percent of all reverse mortgages are insured under the FHA HECM program, this means that vastly-larger loans will be available through reverse mortgage financing under the new standard.
This is great news for many of my Reverse Mortgage clients that have homes of high value that had decided to wait on the program because they could not access as much of their equity as they wanted.
Example from this week of how this lending limit has helped:
I have a borrower that owns a home with no mortgage in Sandy OR. The home is worth over $600,000, and with the old lending limits he was only able to access $295,000. Now, with the new lending limits his available funds have increased by almost $100,000. The lending limit increase is a great benefit from the new stimulus package.
Be sure to contact me today if you would like to see how a Reverse Mortgage can benefit you at BHusen@Sunsetmortgageco.com.
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