The Federal Housing Administration (FHA) has announced that the lending limit for FHA insured HECM Reverse Mortgages will be increasing yet again in 2025.

Beginning on January 1, 2025, the lending limit for FHA government-insured reverse mortgages will be $1,209,750, marking an increase from the lending limit HUD set for 2024 of $1,149,825.

History of HECM Reverse Mortgage Lending Limits 

2025 | $1,209,750
2024 | $1,149,825
2023 | $1,089,300
2022 | $970,800
2021 | $822,375
2020 | $765,600
2019 | $726,525
2018 | $679,650
2017 | $636,150
2009-2016 | $625,500

What These New Limits Mean for Borrowers
 
If you’re a prospective reverse mortgage borrower who has a home valued at or around the new 2025 lending limit, the new MCA will allow you to borrow demonstrably more money in a reverse mortgage transaction.

Remember, the amount of money you can borrow is directly influenced by current interest rates, your home value, and your age at the time that the loan is originated; younger borrowers qualify for generally lower proceeds when compared with older borrowers.

That means that these new limits can certainly make a major difference in the ability for borrowers to earn more money in loan proceeds.

Reverse mortgages are available to homeowners 62 and over, including married couples with many protections in place to ensure borrowers are adequately educated before using this option, such as required third-party counseling.  Reverse mortgages are gaining in popularity among retirees from all walks of life.  The funds can be received via line of credit, monthly payments, lump sum, or as a reverse mortgage for purchase for those looking to purchase a new residence.  The funds can be used however the borrower deems fit – additional income, medical expenses, vacations, home repairs or modifications, gifts, etc.

Jan and Kelsey are Reverse Mortgage Specialists serving the Erie, Dacono, Fort Collins, Loveland, Greeley, Longmont, Boulder and other Front Range areas of Colorado, as well as the Cheyenne and Laramie communities of Wyoming.  Contact Jan and Kelsey to learn if a reverse mortgage is right for you.