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2024 HECM Limit Increased: Here’s why

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FHA has announced that the HECM limit will be increased effective January 1st, 2024. The new HECM limit or the maximum home value that may be considered in the federally-insured reverse mortgage is $1,149,825. This applies to traditional HECMs, HECM-to-HECM refinances, and purchase transactions with case numbers assigned in the calendar year 2024. This effectively increases the HECM limit by $60,525 higher than 2023’s limit.

 

So how is the HECM limit calculated? The HECM limit is one-and-a-half times or 150% of the Federal Housing Finance Agency’s annual conforming limit. The conforming loan limit is the maximum dollar amount of a mortgage that Freddie Mac or Fannie Mae is willing to purchase or guarantee. Since the 2024 conforming limit is…

 

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2 Comments

  1. Excellent description of the workings of how the maximum lending limit for the HECM is created by FHA.


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