The economic stimulus bill signed into law by President Obama yesterday (2/17/09) raises the single national loan limit for HECMs (Home Equity Conversion Mortgage) to 150% of the Freddie Mac loan limit. Currently, that would create a HECM limit of $625,500. The higher limit is only applicable for loans made during the balance of 2009.
This will not take effect until HUD issues a Mortgagee Letter. The timing is still unknown as to when the Mortgagee Letter will be released.
What does this mean to borrowers? For senior homeowners will higher value homes this will have a huge impact. Since the jumbo reverse mortgage market dried up several months ago, seniors with higher value homes have been limited to the lending limit of $417,000 and before that $362,790. The additional $200,000 +/- increase will mean a large increase in the net benefit available to seniors in higher value homes.
For more information: Reverse Mortgage Lenders
or call Josh Borba - 1-888-888-4834 ext. 102