Retirees looking for new sources of income are getting some good news in 2025: Reverse mortgage limits are on the rise.
For 2025, the maximum claim amount on home equity conversion mortgages is $1,209,750, up from $1,149,825, the Federal Housing Administration has announced.
A home equity conversion mortgage, or HECM, is a type of reverse mortgage that is insured and backed by the federal government. It can be used for any purpose.
This new maximum amount for HECMs will apply to case numbers assigned on or after Jan. 1. It also will apply to so-called “special exception areas”: Alaska, Hawaii, Guam and the Virgin Islands.
The higher limits will open new opportunities for seniors who hope to use a reverse mortgage to help fund their retirements.
In a press release detailing new limits for HECMs and other federally-backed mortgages, Julia Gordon, federal housing commissioner, says:
“Today’s announcement of loan limit increases, calculated according to statute, enables the FHA program to keep up with nationwide price appreciation. Regular adjustment of loan limits ensures that FHA financing continues to be available in all markets to all those who rely on our programs to access homeownership.”
Currently, senior homeowners’ housing wealth stands at about $14 trillion, according to the National Reverse Mortgage Lenders Association (NRMLA).
Is a reverse mortgage right for you? Possibly. But not everyone can benefit from using this option. To learn more about the pros and cons of reverse mortgages, check out “Should I Get a Reverse Mortgage?“
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