A new exciting component of the recent FHA modernization that was recently passed and signed into legislation is the increase in loan limits for the FHA’s HECM Reverse Mortgage. Previously, loan limits were based by county, and the more rural the county, the lower the limits.
Now, all counties will be at $417,000.
So what does this mean to you?
If you are 75 and own a home worth $400,000 free and clear and live anywhere in Oregon, under the new limits, you would qualify for approximately $270,000. This is a major increase over the old limits. Previously, this borrower would have qualified for approximately $196,000.
In the above situation, the proceeds could be taken as a lump sum of $270,000, a monthly annuity of around $1700 per month or kept as a line of credit and used as needed.
If your home is worth more then $417,000, then you are still capped at $417,000 in home value. The upside to this is that you will still have a lot of equity left in your home.
The new limits combined with a limit on closing costs will allow more seniors to benefit from a Reverse Mortgage.
Call me for details on your exact situation.
