Reverse Mortgage Lending Limit

If you have been following and looking into the Reverse Mortgage, you already know that the lending limit has increased. Here is a quick synopsis of what that means:

The amount of cash avaialable to a senior with a Reverse Mortgage is based on three criteria:

1. Age of the youngest borower on title
2. The current interest rate
3. The value of the property or the lending limit whichever is less

So prior to the increase if you lived in a county where the lending limit was 200,000 and your house was worth more than 200,000, the amount available would be based on 200,000 instead of the appraised value of your prpoerty.

Now the lending limit has been raised to $417,000 nationwide (no longer fluctuates based on the county you reside in). Again if your house is worth more than $417,000 the amount available is going to be calculated using the $417,000 number instead of the true value of the home. If you home is appraised under $417,000 then the appraised value will be used to calculate the amount avaialable.

This is allowing a large number of seniors to take advantage of this program and makes it more beneficial.

If you have more questions or curious how much cash is available to you under this program, please give me a call - I would be glad to run some numbers for you. We also offer 1 on 1 education to explain in detail how the program works and what it would look like in your situation. I would suggest everyone go through our education process before moving forward with a Reverse Mortgage. We always point out the negatives as well as the positives so you can make an informed decision. We never want to make the decision for you - with our information and your knowledge of your situation, you are the best person to make the decision if a Reverse Mortage is right for you.


Reverse Mortgage Man
(866) 800-0280
troyf@inlanta.com