What is the Maximum FHA Reverse Mortgage Amount?
The maximum FHA reverse mortgage is the lesser of two amounts: the actual appraisal amount of the home or the FHA mortgage limit for a geographical area. Currently, the HECM maximum is $625,500, though it may actually be less in certain areas. It may be further reduced if closing costs are financed into the reverse mortgage instead of being paid out of pocket. This does not mean that someone with a home worth more than the FHA reverse mortgage maximum could not use this program. Rather, the amount of money they can receive is limited to the maximum, even if the house is worth much more. How Much Does a FHA Reverse Mortgage Cost? Aside from the interest rate on a FHA reverse mortgage, which fluctuates with market conditions, there are a number of other costs to be aware of. It’s these costs that can make a reverse mortgage less than a great deal, especially if a borrower only stays in their home for a short period of time after getting the loan. One of the biggest costs a FHA reverse mo
