Reverse Mortgage Limit Increased for FHA HECM

Mortgage and Lending with Fairway Independent Mortgage Corporation Loan Officer, NMLS 184479

The Housing and Economic Recovery Act, the housing bill, passed in July provided for increased loan limits to $417,000 for FHA's Reverse Mortgage, the HECM. The bill called for the limit to be increased to equal the Freddie Mac limit for a single family home.

FHA has interpreted this provision by setting a single, national loan limit of $417,000. This new limit was expected to be effective November 1, 2008, but several lenders have been authorized to process and close HECM loans at the higher limit effective immediately.

This is exciting news for many of the nation's seniors, opening the availability of reverse mortgage to many who previously were not qualified.

FHA HECM reverse mortgages offer seniors the highest payout, significantly higher than is available with the conventional loan version, called

Reverse mortgages "do not require repayment as long as the home is the borrower's principal residence."

Basic borrower eligibility requirements are

  1. minimum age 62
  2. own the home
  3. occupy the home as the primary residence
  4. participate in an approved HECM counseling session

Call for more details. 

Richard Smith
American Acceptance Mortgage, Inc
Toll Free 888-474-9920 Cell 423-280-0345
Home financing in Tennessee, Georgia, and Alabama.
Experience matters when it is your home loan.

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Richard Smith
NMLS# 184479 TN# 104002 Georgia Residential Mortgage Licensee, GA#28928 

Conventional, FHA, FHA 203k, HUD $100 down purchases, VA,

Rural Development (USDA), THDA and Jumbo Loans

Lending in Chattanooga, Tennessee and Georgia for over 20 years.

Fairway Independent Morgage Company

Cell phone: 423-280-0345 Email:

Visit my website to inquiry about a home loan.

This blog represents the opinions of Richard Smith. The posts and comments written on the blog do not represent the opinions or positions of Fairway Independent Mortgage Corporation.


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William Collins
ERA Queen City Realty - Scotch Plains, NJ
Director of Property and Asset Management


Thanks for the post. This is great news. I had been told by a Wells Fargo rep that if a parent has been living in the home for at least five years and that it is their principal place of residence, that a reverse mortgage could be done conventionally. Does FHA HECM have the same provision?

Oct 24, 2008 12:19 AM #1
Bo Hussung
Bell Title /Triserv LLC - Nashvle, TN

Richard, now all you have to do is partner with a reverse moortgage professional that not only uinderstand them, but can close them without incident.

Good information and potential opportunity increases.


Oct 24, 2008 06:15 AM #2
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Richard Smith

FHA VA Rural Development in TN GA
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