New Lending Limits for Reverse Mortgages
As of August 2008, FHA Registration has raised the local lending limit for the HECM Reverse Mortgage Product. While many people will not be affected by this momentous change, a great number of people will receive a huge increase in the amounts of available funds for their Reverse Mortgage. Borrowers will no longer be handicapped by low home values that restrict their true amount of funds.
Most homes that are over $200,000 will see an increase in available funds rise anywhere from 20 to 80% from this new limit change. There are Cons. The increase in limits will be enacted in January. They may also mean Higher Closing Costs.
However, most of the changes that the new FHA HUD Lending Limits will be very positive. They will help fill the void left by the Jumbo Reverse Mortgage ending. It will allow higher value homes to have a proper porportion of funds available.
