If you’re a homeowner 62 years of age or older, you may be wondering, “How much can I borrow on a reverse mortgage?” The Federal Housing Administration’s (FHA) home equity conversion mortgage (HECM) loan limit maximum for 2021 is $822,375.
The FHA insures HECMs, making them the only reverse mortgage programs backed by the federal government.
FHA-approved HECM lenders use a “principal limit factor” to calculate the reverse mortgage maximum loan amount based on the following factors.
According to the Consumer Financial Protection Bureau (CFPB) guidance on reverse mortgages, older borrowers with higher-priced homes and lower interest rates usually receive higher loan amounts than younger borrowers with lower-priced homes and higher interest rates.
*The LendingTree reverse mortgage calculator only displays an estimated lump-sum amount. For other options, contact an experienced reverse mortgage loan officer.