Happy New Year 2022!
One significant change effective January 1, 2022 is the maximum claim amount or lending limit in the United States for the FHA insured HECM, Home Equity Conversion Mortgage. That new number is $970,800 This is a significant increase over the prior year and benefits those home values which appreciated above the earlier limit of $822,375
The formula remains the same to determine how much you can borrow. The youngest borrowers age, the interest rate, the amount of equity available and the home value or lending limit, which ever is less, together determine how much you can borrow. If your home value is much higher then the HECM limit, let’s explore options with proprietary reverse mortgage loans.