Reverse Mortgage Lending Limits INCREASE in 2022!

The maximum reverse mortgage lending limit is increasing for 2022, allowing retirees with substantial home equity to get more money than was available in previous years. 

If you are 62 years or older, a reverse mortgage allows home owners to access the equity in their home through a loan. There aren’t any required monthly payments like those made towards a traditional forward mortgages.

Homeowners may be able to take advantage of their home equity by taking out another loan (reverse mortgage). They won’t have pay back the balance until they sell or move out, so it’s an easy way for them increase how much money is in your pocket!

Each year, the Federal Housing Administration (FHA) sets the lending limits on FHA loans, including the Home Equity Conversion Mortgages (HECM).

The most common type of reverse mortgage is the HECM. These limits are set according to a area’s median home prices, usually being somewhere between low and high cost-of living ranges in an area.

Beginning in 2022, the FHA announced it would increase HECM reverse mortgage lending limits to an all-time high of $970,800.

This is great news for potential borrowers!