The national lending limit for Federal Housing Administration loans including reverse mortgages will remain unchanged through the calendar year 2013, the Department of Housing and Urban Development announced Thursday.
Effective January 1, 2013 through December 31, 2013, loan limits for Home Equity Conversion Mortgages will remain at $625,500, or 150% of the national confirming limit of $417,000, HUD announced through Mortgagee Letter 12-26.
The loan limits have been extended numerous times to allow for reverse mortgage borrowers to obtain up to the higher loan amount, which applies in many high cost areas of the country. The limit for the HECM program was first raised from $417,000 to $625,500 in February 2009.
The limitation as the same as those previously announced and will remain in effect for HECMs with case numbers assigned on or before December 31, 2013, according to the mortgagee letter.
Forward lending limits vary by location and property type, as specified in the mortgagee letter.
Written by Elizabeth Ecker