We all know the market can change quickly; rates have been steadily rising, but this last week we saw a drop, which is great news as it increases reverse mortgage payouts. The FHA sets loan limits on these loans and currently, if your home is worth 1.2 million dollars, the loan limit is set at $970,800. Even though your home may appraise for 1.2 million dollars, the program will only view it as being worth $970,800, strictly for qualification purposes. Generally, the higher your home is worth, the more money you may qualify for. Based on your age and the current interest rate, you are allowed to access a percentage of this loan limit or appraised value as cash to pay off any existing mortgage debt (which will be replaced with the reverse mortgage loan), receive a monthly check, Line of Credit, or Lump Sum payout.
Beginning for FHA case numbers assigned on or after January 1, 2023, the new loan limit for FHA HECM will be $1,089,300; this is an increase of $118,500. Home values appear to be changing and, in some markets, the appraised values are beginning to lower. Now may be a great time to eliminate your monthly mortgage payments with a reverse mortgage (You are still responsible to pay your property tax and home insurance payments). If you would like to look into accessing your home equity you may contact Mortgage Loan Originator, Robert Krepps, at rkrepps@hightechlending.com or toll-free at 877-567-7476.
Robert Krepps, NMLS #255191, at HighTechLending Inc. HighTechLending Inc, NMLS # 7147, is an Equal Housing Lender. Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act.
