HUD Extends Higher Reverse Mortgage Loan Limit for 2011

The Department of Housing and Urban Development made the extension of the Federal Housing Administration’s loan limits official on Wednesday.

Under the provisions of the recent Continuing Resolution (CR), the national FHA loan limit for the HECM program remains at $625,500 according to ML 2010-40.  In the special exception areas (AK/HI/GU/VI), the maximum claim amount on HECM mortgages is also $625,500.

The loan limit is effective for all FHA reverse mortgages that have been assigned a case number on or after January 1, 2011 through September 30, 2011.


Complete schedules of FHA loan limits, including forward loans and HECM mortgages, are available here. In addition, downloadable files, with complete listings of all counties and their loan limits can be found on HUD’s website.

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  • So they had Congress approval for this years expiration of 12/31/2010 but now do not for 1/1/11 – 9/30/11? I am saying the last few years the limit expired the end of our year (12/31/09 & 12/31/10) not the fiscal year of the government (9/30/11). Why is this…maybe its no big deal but it is a change from the last couple years.

    • 2545,
      Congress creates laws with their own reasons for fixing the dates for provisions and extensions to expire or “sunset.” For years NRMLA has fought to keep the cap on the total number of HECMs which can be endorsed suspended (if possible removed). Sometimes Congress makes it a few months, sometimes longer. Congress is just — well you know Congress.

    • James,

      Why is that? It is the action by Congress that was the great news. It is not that I disagree with your elation over the outcome but the issues are far more fundamental than if and when HUD issues its Mortgagee Letter implementing decisions about keeping the higher limit.

      What we need is for Congress to make this limit permanent. There is much pessimism if that is even possible. So far the limit has not been the area of risk that HUD thought it could have become just a few years ago.

      Many argue that the higher limit defeats the introduction of more proprietary products. That sounds overly theoretical right about now.

  • Admin,

    You got everything right but the ML number. It should be 2010-40. I was just asked a question on it and realized that the article had the wrong number.

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