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New limit for the HECM Reverse Mortgage for 2025

Published on Jan 22, 2025 | Reverse Mortgage 2025 changes
New limit for the HECM Reverse Mortgage for 2025
New limit for the HECM Reverse Mortgage for 2025

The Federal Housing Administration (FHA) announced this week that the Home Equity Conversion Mortgage (HECM) limit for 2025 will be $1,209,750. In the industry, this is referred to as the “Max Claim Amount”.  This is the maximum value of a property that can be considered for the purpose of the program’s equity access calculation.  Equity access is based on the age of the youngest borrower and the appraised value or the max claim amount. The higher the appraised value, up to the max claim amount, the more potential equity access.  This increase will help homeowners with more choice in determining what makes the most sense for them between the HECM government insured Reverse Mortgage and the various private Jumbo programs.

 

George H. Omilan
President-CEO - NMLS# 873983
Jefferson Mortgage Group LLC - Mortgage Specialists

Programs:  Traditional QM (Fannie Mae, Freddie Mac), government insured HECM Reverse Mortgages, and Non Traditional Non-QM Mortgages commonly referred to as Specialized Forward Mortgages including “Alt-A Investor loans” and DSCR (Debt Service Coverage Ratio) loans up to 85% LTV, both Full doc and No Income-No Employment (No Doc) for the investor community. Our expanded niche products also focus on the more traditional FHA & VA with Lower Score and higher Debt-to-Income Options, Fixed & Variable Jumbo loans, and Private Label Reverse mortgages for higher priced homes. We are also highly focused on specialized loans for the Self-Employed borrowers with our Bank Statement & Asset Dissipation Programs. We are committed to offering a full range of “Non-QM Loans” for expanded qualification, where the banks and large-scale lenders dare to go.

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