The reverse mortgage loan limit is the cap that the RM program puts on home values used to calculate your qualification. The current limit is set at $625,000 and has been cemented there for many years; even though home values in California have been steadily rising. The limit effectively caps the value the program assesses for your home. For example, if your home appraises for $1,000,000 the program in 2016 only qualifies you for a home value of $625,000 the rest of the value is still your equity, but for the purposes of the RM program and the money you can access they will only calculate it at the RM loan limit.
The new loan limit for RM’s will rise $11,150 up to $636,150. This is not a large increase, but it is a trend in the right direction. As national home values continue to increase the RM loan limit will continue to increase giving seniors access to more of their home equity through the RM program. To find out what you can get on a RM call us today at (877) 567-7476 or check our website at www.Funds4Seniors.com