Today, HUD issued Mortgagee Letter 2011-29 which extends the existing reverse mortgage loan limits of $625,500 through December 31, 2011. In an earlier blog post, we spoke about a possible reduction in reverse mortgage loan limits. A reduction is still a possibility. So, for those homeowners with higher home values who are on the fence should seriously consider either starting a reverse mortgage or understand that if limits to decrease, the amount of proceeds available will decrease as well.
The letter states that FHA-insured HECMs will remain at $625,500 through 12/31/11. However, if legislation is enacted to extend the current FHA-insured loan limits, the Department will publish a Mortgagee Letter which defines the most recent loan limits for both FHA-insured forward mortgages and HECMs.
Again, we always advice using our reverse mortgage calculator to determine the amount of proceeds available to you. Please check back periodically as we will update our blog as we learn more information.