A little slow on this…going through a pile of my ‘blog clippings.’ But a significant jump to $625,000 from $417,000 on reverse mortgages that allow seniors over 62 to borrow against the equity in their home. An easy planning tool for cash-strapped seniors. Here’s HUD’s release:
FHA’s reverse mortgage product known as the Home Equity Conversion Mortgage (HECM) will have a new national mortgage limit of $625,500, up from the previous limit of high of $417,000. Reverse mortgages allow homeowners age 62 and older to borrow against the value of their homes without selling them or having to make any monthly repayments. Homeowners can select a lump-sum payment, monthly payments or tap into a line of credit. No repayment is required as long as a homeowner lives in a home with a reverse mortgage. The reverse mortgage is repaid, with interest, when a homeowner sells the home or dies.
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